As environmental, social, and governance (ESG) standards tighten worldwide, the rules of global trade are being rewritten. For Vietnam, ESG is no longer a peripheral compliance box to tick; it is rapidly becoming the passport to market access, capital flows, and long-term competitiveness.
Rising expectations, rising stakes
The rapid economic expansion has propelled Vietnam into the spotlight of global supply chains, but this growth now comes with heightened expectations.
International investors and major trade partners, particularly in the European Union, the United States, and Japan, now demand more than competitive pricing. They expect verifiable proof of sustainability, ethical labor practices, and transparent corporate governance. This is not rhetoric; it is increasingly embedded in next-generation trade agreements such as the EU-Vietnam Free Trade Agreement and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, where compliance with higher ESG standards is a prerequisite for market entry.
The urgency is driven not only by external market forces but also by domestic pressures. Vietnam’s pledge to achieve net zero by 2050, made at COP26, commits the country to deep emissions cuts and a structural energy transition. Rising global fossil fuel prices and the growing cost of climate impacts, ranging from severe floods to droughts, are adding economic and operational strain.
The Vietnamese Government has moved swiftly to address these challenges and opportunities. Since 2020, listed companies have been required to disclose their ESG performance in annual reports, under regulations like Circular 96/2020/TT-BTC. In January 2025, Deputy Prime Minister Tran Hong Ha signed off on the country’s implementation plan for developing a national carbon market. Updated national strategies for green growth now prioritize emissions reductions, increased renewable energy, and efficient resource use across sectors. Recently, Party General Secretary To Lam, on behalf of the Politburo, signed Resolution No. 68-NQ/TW regarding private sector development in Vietnam on
May 4, 2025. This is also notable for its clear stance on ESG priorities.
Yet policy ambition alone will not guarantee competitiveness. As the Acclime ESG Report 2025, prepared by Acclime Vietnam with support from Green Transition, warns: businesses that treat ESG as a short-term compliance exercise risk being overwhelmed by regulatory complexity and market scrutiny. Conversely, companies that embed sustainability into core strategy, with strong governance, active board oversight, and robust risk management, are far more likely to attract investment, secure long-term contracts, and withstand external shocks. The message is clear: ESG is not simply a cost of doing business; it is fast becoming the currency of global trade.
ESG reshapes Vietnam’s key industries
While ESG principles are influencing the entire business landscape, their impact is most visible in Vietnam’s leading sectors where compliance is rapidly evolving from a regulatory obligation into a competitive differentiator.
Manufacturing is under mounting pressure to transform. Export-oriented manufacturers face rising demands from global buyers to decarbonize supply chains, reduce waste, and adopt circular economy practices. According to the report, companies in sectors such as cement, building materials, and food processing are beginning to adopt eco-friendly packaging and certified green products. These steps not only help manufacturers meet ESG requirements but also lower operating costs and enhance their attractiveness in international markets, where transparency and sustainability have become decisive factors for securing and retaining customers.
In real estate, the push for green buildings has accelerated beyond initial expectations. As of 2024, Vietnam had 559 building projects with green certification, exceeding the original 2025 target of just 80 projects. The report highlights major projects such as Vinhomes Green Paradise Can Gio, an US$18 billion investment that sets a new benchmark for sustainable urban development in Vietnam. Moreover, many are transitioning to eco-industrial parks, supported by government policies that incentivize cleaner production and resource efficiency. Looking ahead to 2030, Vietnam aims for 40% to 50% of its provinces and cities to transition existing industrial parks into eco-industrial ones, with an additional 8% to 10% planning to establish new EIPs. Early adopters are already leveraging this transition to secure long-term supply contracts with sustainability-conscious clients.
The finance sector is playing an enabling role in Vietnam’s ESG transition. By September 30, 2024, 50 credit institutions had active green loan portfolios totaling VND665 trillion. Of this, 43% was directed toward renewable and clean energy projects, while 30% toward sustainable agriculture. Banks such as BIDV have issued innovative instruments – BIDV’s US$104 million green bond in 2023 was the first of its kind by a local commercial bank – while UOB had financed 19 green projects in Vietnam by the end of 2024.
Seizing the edge, navigating the risk
Vietnam’s ESG push has delivered some headline wins – from green real estate projects worth billions of U.S. dollars to record green loan volumes – but beneath the momentum lies a tougher reality: the transformation is uneven, and the risks of falling behind are growing.
Businesses that treat ESG as a passing trend may struggle with growing complexities and confusion, the Acclime ESG Report 2025 warns. The gulf between leaders and laggards is stark. Many small and medium-sized enterprises, the backbone of the economy, lack the capital, expertise, and dedicated staff to implement ESG beyond the bare minimum. The danger, experts say, is a wave of box-ticking that looks good in a brochure but crumbles under investor or regulator scrutiny.
The future will be shaped by “deep structural forces: climate risk, supply chain resilience, investor pressure, and public accountability.” It outlines a maturity path from Awareness to Sustainable Investment & Beyond, noting that sectors will move at different speeds depending on their pressures and material issues. Technology — from AI and IoT to blockchain — will be essential for tracking, verifying, and reporting progress.
For Bao Nguyen, co-founder and managing partner at Green Transition, the mindset shift is crucial: “At its core, a business’s mission is to create value—for itself and for the community around it. Sustainability does not interrupt that mission; on the contrary, it is a tool for better managing hidden risks and unlocking long-term, resilient value.” Vlad Savin, Partner at Acclime Vietnam, adds that staying informed on ESG trends is essential for mitigating risks, identifying opportunities, and aligning with international compliance standards.
Vietnam has built the scaffolding: policy, early-stage capital, and flagship projects. The question now is whether it can turn that framework into a durable, market-ready capability. In ESG, as in trade, first movers do not just comply, they compete.
