Vietnam has pledged to reach Net Zero by 2050 at COP26, marking a historic commitment to sustainable development. To achieve this goal, enterprises must embrace ESG (Environmental, Social, Governance) principles. This report analyzes where Vietnamese businesses currently stand, the obstacles they face, and the opportunities ahead.
Background: ESG and Net Zero 2050
- ESG: A framework used globally to measure corporate sustainability and responsibility.
- Net Zero 2050: A commitment to balance greenhouse gas emissions with removals, aligning with the Paris Agreement.
- Global Context: Investors, regulators, and consumers demand transparency, making ESG essential for competitiveness.
Current Status of Vietnamese Enterprises
Adoption Levels
- Large corporations: Some leading companies (e.g., Vinamilk, VinGroup, and state-owned banks) have published ESG or sustainability reports.
- SMEs: Awareness is still limited, with most lacking structured ESG strategies.
Policy Environment
- Vietnam’s Law on Environmental Protection (2020) requires greenhouse gas reporting from major emitters.
- The government’s Green Growth Strategy (2021–2030) aligns with Net Zero 2050 commitments.
Market Trends
- Export-driven industries (textiles, seafood, electronics) face increasing ESG requirements from EU and US markets.
- International investors are prioritizing ESG-compliant firms for funding.
Key Challenges
Limited Awareness and Knowledge
Many SMEs do not fully understand ESG principles or how to integrate them.
High Compliance Costs
Transitioning to green technologies and reporting frameworks requires significant capital.
Data and Transparency Gaps
Enterprises struggle with accurate emissions measurement and ESG disclosure.
Global Pressure
Regulations like the EU Carbon Border Adjustment Mechanism (CBAM) create urgency for exporters.
Opportunities
Access to Green Finance
ESG-compliant businesses can secure green bonds, concessional loans, and FDI.
Competitive Advantage in Exports
Meeting ESG standards allows access to high-value markets.
Innovation and Digital Transformation
Sustainability pushes businesses to adopt energy-efficient systems and circular economy practices.
Public–Private Partnerships
Government incentives and international cooperation create a supportive environment.
Recommendations for Vietnamese Enterprises
Integrate ESG into Strategy: Treat ESG as a core business driver, not just compliance.
Build Capacity: Train internal teams on ESG standards and reporting.
Adopt Carbon Accounting: Implement tools for monitoring and verifying emissions.
Collaborate Regionally: Partner with ASEAN firms to share best practices.
Engage Stakeholders: Communicate ESG progress to investors, customers, and regulators.
Vietnamese enterprises are at the early stages of ESG adoption, but the commitment to Net Zero 2050 sets a clear direction. By proactively integrating ESG principles, businesses can overcome challenges, access global capital, and secure a strong position in the green economy. The next decade will be decisive—those who adapt early will lead Vietnam’s sustainable transformation.