Building ESG strategy - Shaping sustainable future for Vietnam commercial banking system

Abstract

 The integration of ESG (Environmental, Social, Governance) principles into Vietnam commercial banking system has emerged as an inevitable trend, an objective requirement, and a strategic priority to foster sustainable development amid globalization, climate change, and digital transformation. Recognizing the significance of ESG, the Government Vietnam has introduced guiding policies, including the National Strategy on Green Growth (Decision No. 1658/QD-TTg, dated October 1, 2021) and Circular No. 17/2022/TT-NHNN issued by the State Bank of Vietnam, mandating the assessment of environmental and social risks in credit activities. This study analyzes the theoretical framework of ESG, its implementation trends in developed countries, and the practical application in Vietnam. The findings confirm that ESG integration not only enables effective management of non-financial risks, enhances reputation, strengthens competitiveness, and attracts sustainable investment capital, but also contributes to national green economic objectives, laying a robust foundation for the long-term development of Vietnam banking system in the era of global finance.