Training of trainers on start-up with integrity

Training of trainers on start-up with integrity is carried out under the UNDP Regional Project “Promoting a Fair Business Environment in ASEAN”.

Under this project, UNDP is coordinating both with Government agencies and businesses to strengthen and implement anti-corruption policies and laws and to promote business integrity practices and corporate responsibility in 6 ASEAN countries, including Viet Nam. Corruption is a critical issue as it is seen among human rights abuses in the context of business operation and provided in UN Global Compact that “business should work against corruption in all its forms, including extortion and bribery.”

Mr. Darko Pavlovic, Project Manager, Promoting a Fair Business Environment in ASEAN (FairBiz), Bangkok Regional Hub, United Nations Development Programme, said Asia is home to more than 60 percent of the world’s youth, about 700 million young people. It is estimated that they account for half of the jobless people, in the region. Entrepreneurship offers a way out, and many are already taking this route. The region has one of the highest young start-up rates across the globe, and 40 percent of these start-ups are creating jobs.

“At the regional level, UNDP has set up the FairBiz Integrity Hub which provides support, expertise and knowledge products to governments, companies, and civil society organisations in the region. Amongst the useful materials we have produced is Business Integrity Toolkit for Young Entrepreneurs. The knowledge product was launched in 2020 and has been widely distributed to organisations translated into two languages including Vietnamese. You’ll learn more about it at the start of Day 3 of this training programme”, Mr. Darko Pavlovic said.

In Vietnam, according to the statistics of the General Statistics Office, in the past two years, despite the impacts of the covid-19 pandemic, there is still a large number of newly established businesses. In 2020, this number was 134,900 and in 2021, there were 116,800 newly established businesses. On the other hand, in 2020, there were nearly 102,000 businesses withdrawing from the market, and in 2021, this number was about 120,000 enterprises.

New businesses, including start-ups, are mostly led by young people. 55% of entrepreneurs in Viet Nam are aged between 18 and 34. Running a business, including dealing with the administrative procedures, tax regulations, intellectual property law, can be very challenging. Without capacity, experience and networks, it can sometimes be very tempting to resort to unofficial means, including bribery, to solve the problems.

However, in Mr. Darko Pavlovic’s opinion, UNDP knows that the new generation of entrepreneurs is not willing to follow that path.

According to the 2019 Vietnam Youth Integrity Survey by Towards Transparency, almost all respondents believe that corruption and lack of integrity is harmful to their generation, the economy and the development of Vietnam. However, more than three-quarters of them report having no or very little knowledge on the integrity and anti-corruption rules and regulation.

Mr. Darko Pavlovic, Project Manager, Promoting a Fair Business Environment in ASEAN (FairBiz), Bangkok Regional Hub, United Nations Development Programme.

This is why UNDP is organising today’s training.

In the last four years, UNDP and Vietnam Chamber of Commerce and Industry (VCCI) conducted a series of activities to encourage and support businesses to develop and apply codes of conduct and internal control mechanisms. A survey of more than 200 companies was conducted to assess the need for developing and applying these tools.

“Based on that survey, we developed a manual and training materials. Trainings were organized for more than 950 companies to enhance their knowledge and skills on Code of Conduct, internal controls, business integrity, ESG and responsible business practice. Targeted technical support was provided to three selected companies to develop and implement internal control mechanisms and Codes of Conduct. All the developed materials and tools you can find in the kdlc.vn website which was established by the Office for Business Sustainable Development, VCCI”, Mr. Darko Pavlovic said. 

UNDP implements specific activities focused on supporting young entrepreneurs who are leading new businesses, including start-ups. In 2020, this organization held one TOT for 40 innovative entrepreneurship trainers on business integrity, 03 training workshops on business integrity for over 110 new businesses in Ha Noi, Ho Chi Minh City and Quang Ninh. It also launched 2 business integrity checklists for investors and for new businesses in July 2020, developed a Chatbot with 110 questions and answers on business integrity and setting up a new business in both Vietnamese and English. In 2022, it completed 2 trainings for start-ups and young entrepreneurs, equipping knowledge and skills on business integrity and innovation for 76 companies.

There is still a long way to go, but Mr. Darko Pavlovic believes that today event is another important step in a series of activities to promote and strengthen business integrity and business responsibility in Viet Nam. He hopes after this training, trainees will be able to provide further trainings to start-ups and young entrepreneurs.

“I would like to stress that businesses can flourish by operating with integrity, and building a culture of business integrity in Viet Nam needs more collective action. Business integrity should be at the core of every company’s value system thus integrated into the company’s decision-making and existing operational policies and procedures. That is key for the realisation of the Sustainable Development Goals or SDGs by 2030 and UNDP stands ready to support Viet Nam in this process”, Mr. Darko Pavlovic stressed.

Today’s young entrepreneurs will become the business leaders of tomorrow. Therefore, raising your awareness of the benefits of business integrity practices will help ensure a fair business environment in the future which shall support business sustainability and long-term performance.

“We look forward to working with you and I count on your leadership to promote a more transparent and fair business environment in Viet Nam. I wish you all a successful and productive training”, Mr. Darko Pavlovic expressed.