VSBF 2025 tackles governance and sustainability challenges

VSBF 2025 tackles governance and sustainability challenges

The 2025 Vietnam Singapore Board Forum (VSBF) took place in Hanoi on June 13, bringing together over 150 senior international leaders and experts from governments and corporations to address pressing governance challenges and sustainability imperatives.

VSBF 2025 panel discussion

In an era marked by climate disruption, geopolitical volatility, and shifting stakeholder expectations, businesses across ASEAN are under increasing pressure to adapt.

"Climate change is going to get much worse, with increasingly dire consequences, if we don’t act. Lives and livelihoods have been and will continue to be deeply affected across ASEAN. The transition to a green and sustainable future cannot be delayed, it is an urgent necessity," said Jaya Ratnam, Singapore’s Ambassador to Vietnam.

"However, the resolve for collective action to deal with global challenges, especially climate change, is coming under increasing pressure," he added. The politics of taking action over climate change is proving complex. Many countries and companies are distracted by the pressing concerns of the day, and climate change is a problem for tomorrow. The costs of managing an energy transition, not just economic but social and then political, are a creating pushback. Hence, across the world, some have questioned why they should comply with the Paris Agreement, or at least the urgency of doing so.

"Fortunately, Vietnam and Singapore have made our position clear to achieve net-zero by 2050. The cost we bear in doing so are real, but the costs of wavering are too high," said Ratnam. "We are realistic. The path forward is not easy, or without some pain. We recognise that for the green transition to succeed, the outcomes must be people-centred. We must ensure that the economic and social benefits of transition are equitably distributed. Countries should not have to choose between meeting their sustainable development goals and reducing emissions."

VSBF 2025 shone a light on practical pathways where sustainability is no longer a compliance obligation, but a strategic differentiator for forward-looking and resilient enterprises. From the conversion of coal power plants in the Philippines, offering replicable models for energy transition in emerging economies, to the Mekong Delta’s agricultural transformation through climate-resilient practices, the forum showcased how sustainable innovation can drive long-term competitiveness.

In parallel, VSBF fosters cross-border dialogue on embedding sustainability at the heart of corporate strategy, not simply to meet regulatory demands, but to seize new market opportunities and reinforce trust. The forum also highlights the growing relevance of stewardship leadership: a model that calls on leaders to act with long-term responsibility, integrity, and a spirit of service. In the face of mounting climate risks, this approach emphasises purpose over short-term gain and accountability beyond organisational boundaries.

The signing of the MoU between EY and VSBF

Eddie Tritton from Singapore Management University, co-director of VSBF, believes that this is a great opportunity to build a green ASEAN development. "ASEAN countries possess large resources of renewable energy, and increasing investment will help ASEAN become the clean energy centre of the region. In addition, circular industry, and green agriculture are promoted through attractive investment policy mechanisms. The carbon market also brings significant revenue and contributes to ecological protection."

To take full advantage of the opportunity, Tritton recommends that ASEAN promote cross-border cooperation and green finance, a workforce suitable for the green economy, and harmonise sustainable development standards.

Lim Boon Heng, chairman of Temasek Holdings, member of the VSBF Advisory Board, spoke of how corporate governance is the key to coping with fluctuations. "Businesses need to shift from a formal corporate governance model to a value-based governance model, enhancing control and accountability. Boards of directors should define goals and make strategic and long-term decisions," he said.

"Vietnam has great potential for renewable energy that can provide clean electricity to Singapore. Besides infrastructure, and technology, mutual trust between the two countries and commitment to action from both sides are also required to realise cooperation plans. In a fractured and fragile world, corporate boards need to do the right thing and take responsibility for a sustainable future," added Lim.

A key highlight of VSBF 2025 is the signing of an MoU between Ernst & Young LLP (EY) and VSBF, aimed at empowering private and public enterprises in Vietnam to scale their sustainability efforts and adopt environmental, social, and governance (ESG) strategies for a low-carbon future.

The MoU focuses on three key pillars: advancing sustainability and net-zero transition through thought leadership and tailored playbooks for Vietnam-based firms; building capacity via high-quality training and advisory on decarbonisation strategies; and exploring a future sustainability platform to enhance cross-sector collaboration, ESG integration, and climate resilience across both public and private sectors in Vietnam.

"VSBF and EY have a shared goal to help businesses in Vietnam navigate the dynamic sustainability landscape, build capacity in decarbonisation and transform for climate resilience. This MoU reflects the mutual belief between the two organisations that an ESG strategy with a clear action plan can be the catalyst for cross-border collaboration, innovation, and resilience readiness," said Lee Wei Hock, head of EY's Assurance.

Amidst the Vietnamese government's determined efforts to streamline governance and enhance effectiveness and efficiency and realise its green development strategy, Pham Thi Thu Hang, director of the CSBF and CEO of VietStar state that VSBF 2025 showcases successful case studies, sustainable, and business streamlining practices, robust governance, and cross-border dialogues on sustainability.

"VSBF 2025 showcase how sustainable practices are being embedded in energy, agriculture, and governance, and will encourage leaders to move from commitment to execution. Through collaboration, knowledge sharing, and strategic partnerships, VSBF remains committed to contributing to the region's sustainability agenda while fostering cooperation opportunities between Vietnamese and Singaporean businesses," she said.

Over the past five years, the VSBF has transformed from a forward-looking initiative into a distinguished platform for regional action. Each VSBF edition has expanded its influence, convening board leaders, policymakers, and innovators to reimagine business not merely as an engine of growth but as a steward of sustainability.

VIR