Forming ESG standards for Vietnamese enterprises: A Foreign investment attraction perspective

Abstract

ESG has become a crucial framework in the global financial system, particularly in attracting international investment. This study seeks to develop an ESG framework for Vietnamese enterprises from the perspective of international investment attraction. Through literature review and secondary data analysis, the research clarifies the theoretical foundation of ESG implementation, international experiences from the European and Asian countries, and the current implementation status in Vietnam. The findings indicate key challenges in practising ESG in Vietnam including resource and knowledge deficiencies, complex regulations, and high implementation costs. From these findings, the research offers three recommendations: developing national ESG standards aligned with international benchmarks, promoting stakeholder engagement, and establishing an effective mechanism for monitoring ESG reporting to attract international investment capital.