In a rapidly shifting global economy, ESG (Environmental, Social, and Governance) has become the “passport” that determines whether a business can remain in — or gain access to — international supply chains. Today, multinational corporations, buyers, investment funds, and even governments require their partners to meet ESG standards, especially in export-oriented industries.
In Vietnam, this trend has become increasingly apparent after the country’s COP26 commitments, where the Government pledged to achieve Net Zero emissions by 2050 and reduce emissions by 43.5% by 2030. ESG is no longer an academic concept, it is now a survival strategy.
1. Why ESG Has Become Mandatory for Vietnamese Businesses
Major markets (EU, the U.S., Japan, Korea) are tightening environmental and social requirementsn. Global supply chains are actively filtering out suppliers that fail to meet ESG benchmarks. Investors are directing capital only toward companies with sustainable strategies and transparent governance.Younger workers prefer employers with strong environmental and social policies.
As a result, within the next 5–10 years, companies that fail to comply with ESG may lose orders, face difficulties accessing finance, struggle to attract talent, and risk being removed from global supply chains.
2. ESG Trends & Policies in Vietnam: Current Landscape and Near Future
Vietnam is entering a strong ESG transformation phase through national-level commitments and policies. At COP26 (2021), the Government pledged to reach net-zero emissions by 2050, followed by concrete action plans.
Decision No. 1658/QĐ-TTg (National Green Growth Strategy 2021–2030) promotes renewable energy, circular economy practices, and efficient resource use.
Decision No. 888/QĐ-TTg lays the groundwork for implementing climate commitments in practice.
These directions create significant pressure for businesses to enhance production processes, strengthen governance, and disclose information in line with international standards. At the same time, this transition opens major opportunities to access green finance, upgrade technology, elevate brand reputation, and meet the increasingly strict requirements of multinational corporations. This helps businesses avoid being pushed out of global supply chains and provides a springboard to grow in Vietnam’s green transition era.
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3. Industries Most Affected by ESG in Vietnam
Industries with export reliance or high energy consumption are facing substantial pressure, including:
- Textilegarment, footwear, electronics, agriculture: directly impacted by the EU CBAM and international labor standards.
- Energy, steel, cement: required to cut emissions under national policies and Power Development Plan VIII.
- Banking and finance: must adopt ESG risk management and prioritize green credit.
- Retail, logistics, construction: compelled to shift toward greener operating models to retain customers and FDI partners.
Source: https://hocvienhr.com/esg-tai-viet-nam-xu-huong-chinh-sach-tuong-lai/
4. ESG Pioneers in Vietnam
Several companies have taken early steps and gained competitive advantages in the supply chain:
- Vinamilk: Green Farm model, carbon neutrality initiatives, animal welfare standards.
- Vingroup: early sustainability reporting, VinFast electric vehicles, green urban development.
- BIDV, Techcombank: green bonds, ESG governance aligned with international frameworks.
- Unilever Vietnam: plastic reduction and 20 years of sustainability programs.
ESG is no longer a short-term trend, it is now a mandatory standard for modern business operations. Major markets such as the EU, U.S., and Japan are tightening regulations on emissions, social responsibility, and transparent corporate governance. ESG has therefore become the “entry ticket” that determines whether a business can survive and grow within global supply chains.
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