ESG and ESG practice in Vietnam

Abstract

Sustainable development is a growing global trend with increasing demands from stakeholders. Therefore, environmental, social and governance (ESG) standards have become one of the focuses to help businesses integrate sustainability factors into their business operations. In Vietnam, integrating ESG into business operations is necessary for Vietnamese businesses to shift from rapid growth to sustainable growth, ensuring long-term benefits for the economy and society. In recent years, there has been a significant increase in awareness and application of ESG principles in Vietnam thanks to active efforts from the Government and business community. However, the ESG practice in Vietnam still faces certain difficulties and challenges such as the lack of a complete, comprehensive and detailed legal framework; framework for measuring and evaluating the effectiveness of ESG activities; financial and human resources.