Are Vietnamese businesses ready for the “green yardstick” of ESG?

“Businesses are becoming increasingly aware that ESG is more than a passing trend—it’s a defining factor in long-term sustainability. Change doesn’t happen overnight, but I believe that as ESG becomes embedded in Vietnam’s development narrative, it will unlock lasting value and resonate more widely,” shared social activist Mimi Vu with Tatler Vietnam.

Read more: Mimi Vu, Social Activist – Expert on Human Trafficking and Modern Slavery: “I give from the privileges I have”

At the Vietnam ESG Initiative 2024 Awards Ceremony, a new report outlined the state of ESG practice in the business sector. Of the 1,019 enterprises surveyed, 39 percent had never encountered the term ESG, while 62 percent lacked a clear understanding of the relevant regulations and policies. The figures speak volumes about the disconnect between current business practices in Vietnam and global sustainability standards.

Perhaps the most pressing challenge is a shortage of resources and expertise. Meeting ESG benchmarks demands substantial investment—financially, operationally and intellectually. For many companies, particularly SMEs, limitations in capital and know-how remain major hurdles.

Adding to this, Vietnam’s ESG-related legal framework is still taking shape. A lack of harmonised legislation has left many businesses uncertain about how to proceed. Compounding the issue is the absence of standardised reporting, which makes ESG performance difficult to track and assess.

Finally, with the digital economy moving at full tilt, competition grows ever fiercer. Vietnamese companies must contend not only with stakeholder expectations, but also with rivals who are rapidly adopting ESG practices. To keep pace, businesses will need sustained determination and a firm commitment to embedding ESG within their operational DNA.

Vinamilk is among the earliest pioneers of ESG in Vietnam, having launched a structured approach to sustainable development. With a bold ambition to reach net zero emissions by 2050, the company has channelled investment into green production—embracing renewable energy and fine-tuning manufacturing processes for greater efficiency. Initiatives such as the “1 Million Trees for Vietnam Fund” and the “Net Zero Forest” project have actively contributed to environmental conservation and curbing the effects of climate change. On the social front, the “Vietnam Rising” Milk Fund speaks to Vinamilk’s enduring commitment to improving children’s nutrition. Meanwhile, its governance model is underpinned by transparency, international compliance, and the integration of advanced management technologies.

Beyond Vinamilk, Asia Commercial Joint Stock Bank (ACB) stands out as the first Vietnamese bank to publish an ESG report. Though ESG only emerged as a “top trending” concept in Vietnam in 2023, ACB had already begun laying the groundwork a decade earlier under the leadership of its youngest-ever Chairman, Mr. Tran Hung Huy.

ACB has committed to green technology, workplace optimisation and energy efficiency. The bank also prioritises nurturing talent, building a work environment rooted in sustainability and wellbeing. In its 2022 sustainability report, ACB noted having saved and recycled 215 tonnes of paper and 32 tonnes of plastic. Over the past decade, the bank has allocated more than VND307 billion to hands-on initiatives and educational campaigns promoting environmental awareness.

Vingroup—Vietnam’s largest private-sector conglomerate—has likewise made a clear statement of intent on the ESG front. With a mission to “Create a Green Future,” the group was honoured with the ASEAN AIBP Technology Award 2023 for its ESG efforts. Vingroup leverages advanced technologies including AI and IoT to address complex environmental issues. In the real estate sphere, it has developed eco-conscious urban projects, achieving LEED Platinum certification. VinFast, Vingroup subsidiary, has shifted focus to electric vehicles, supporting the national drive to cut CO₂ emissions. Another branch, Vinpearl, received the Vietnam Environment Award in 2019 and is running the “Go Green” campaign to reduce plastic usage.

To take on ESG with lasting success, Vietnamese businesses must follow a well-defined, all-encompassing roadmap. Raising awareness is the essential starting point. Enterprises should invest in training initiatives that help leaders and staff grasp both the value and practical benefits of ESG. This shared understanding forms a strong foundation for bringing ESG practices into the fabric of daily operations.

Next comes strategy. Businesses must shape a clear ESG plan that aligns with their broader vision and long-term objectives. This strategy should be broken down into specific targets, metrics for assessment and actionable steps.

ESG cannot be treated as an accessory—it must be woven into the governance structure. This involves a shift in mindset, influencing everything from high-level planning to risk management and financial transparency. Strategic partnerships will also prove instrumental. By engaging with international organisations, investors and ESG specialists, Vietnamese companies can gain access to global best practices, resources and innovations. Finally, robust reporting and regular evaluations are key. Tracking progress not only ensures transparency but also allows businesses to recalibrate and stay on course towards meaningful ESG milestones.

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