Oxfam signs MoU with Vietnam Rubber Group to promote sustainable development

Siem Reap, August 11, 2023_Today marks the commencement of the collaboration between Oxfam and Vietnam Rubber (VRG) Group on a two-year project starting from August 2023 to December 2025 to promote sustainable development, green growth and responsible investment in rubber value chain in Cambodia.

As part of this partnership, Oxfam in Cambodia and VRG will be working closely on several areas including supporting the review and update of VTG’s five-year Sustainable Development Strategy, providing capacity building to VRG's subsidiary companies in Cambodia, and documenting VRG's sustainable and responsible rubber investment practices and lessons learned.  

Private Sector Engagement represents a crucial pillar and strategy for Oxfam International. In Cambodia, Oxfam collaborates with private sector actors across various thematic areas, including agriculture and agro-industrial, finance and banking, and corporate sector, to promote and advance principles of sustainable and responsible investment, and inclusive business.

Ms. Sophoan PHEAN, National Director of Oxfam in Cambodia, emphasized the significance of working collaboratively with the private sector actors to achieve sustainable and responsible investment. She stated, "We see greater need than ever to work collaboratively, bringing resources, expertise and new approaches achieve and sustain development results, and the private sector has an important role to play. We welcome all private sector actors considering improvements and commitments to adopt alternative strategies and approaches in their investment to address the current global climate crisis and respond to the call for action on inclusive and sustainable development. We encourage them to take the lead as frontrunners and role models, even as some remain hesitant to engage with CSOs/NGOs like Oxfam."

Oxfam in Vietnam started the partnership with VRG since 2015 to develop and pilot the Voluntary Guidelines on Mitigating Social-Environmental Risks for Agricultural Investment in the Mekong Sub-Region. Oxfam in Vietnam led the guideline development, while VRG provided input for drafting and piloting them in its two affiliate companies. The Guidelines were officially launched in January 2019.

In early 2021, Oxfam in Cambodia signed an MoU with VRG to adapt the Community Engagement Handbook to the Cambodian context and piloted it with three subsidiary companies in Cambodia. The initial phase of the MoU, signed on the 23 April 2021 on a collaboration that aims to foster effective dialogue and establish a communication platform among Oxfam, VRG, and other stakeholders, promoting investment with responsibility and adherence to sustainable development principles. It also seeks to enhance awareness among VRG and its Cambodian subsidiary companies regarding key principles related to ESG and other national and international responsible investment guidelines.

After successful implementation of the MoU, Oxfam in Cambodia and VRG agreed to continue the collaboration through this new MoU

Mr. Truong Minh Trung, Deputy Director General of VRG said: “The cooperation with Oxfam in Vietnam and Cambodia in the past time has brought good results to the parties, in line with the purpose and operating principles of Oxfam and the VRG’s sustainable development orientation.” He added that “The cooperation results have contributed to supporting VRG in raising awareness from the VRG leaders to member companies about community engagement and gender equality to comply with local regulations and international practices while helping VRG to spread and verify the results of implementing corporate social responsibility objectively and honestly." 

Mr. Truong Minh Trung added that, in the upcoming cooperation period, VRG commits to coordinate with Oxfam in Cambodia to strengthen the effective implementation of policies and practices on community engagement, gender equality, ensuring workers' rights, and other relevant social and environmental issues toward the goals of Sustainable Development, Green Growth, and Responsible Investment."ning event were attended by representatives from 14 subsidiary member companies in Cambodia, VRG Representative Office in Phnom Penh, VRG headquarters andOxfam in Cambodia team. This event reflects the commitment and efforts of VRG leadership to enhance the sustainability, responsibility, and welfare of their investments, particularly with regard to the environment, society, and the well-being of workers laboring beneath the rubber trees, who deserve fair wages and care through Cambodia's social security fund/social protection scheme.