Businesses adopts ESG as part of long-term strategy

Climate change presents both challenges and opportunities for Vietnamese businesses, as global markets increasingly demand sustainable products and services. Experts highlight the potential for companies to grow by enhancing energy efficiency and investing in eco-friendly innovations, such as green steel and renewable energy. However, ESG (Environmental, Social, and Governance) adoption in Vietnam remains limited, with only a small percentage of listed firms publishing standalone sustainability reports. The absence of a comprehensive legal framework is a key barrier, prompting regulatory bodies like the State Securities Commission of Vietnam (SSC) to collaborate with international partners to establish national ESG standards by 2026. While large corporations such as Vinamilk and PAN Group have successfully integrated ESG practices, widespread implementation faces challenges, including a shortage of trained professionals. Nevertheless, recent regulatory enforcement and international training initiatives signal progress. Experts argue that strong corporate governance and adherence to global standards such as IFRS S1 and S2 are essential for Vietnam’s businesses to remain competitive and resilient in an increasingly sustainability-focused global economy.