HCMC – With global ESG policies evolving at an accelerating pace, businesses are under increasing pressure, yet also have a unique opportunity to redefine their strategic directions for sustainable growth. Embracing dual transformation through green and digital models can enhance competitiveness and position companies to meet the demands of an increasingly dynamic market.
The Saigon Times, in collaboration with Green Transition Consulting & Training, organized the ESG Forum 2025, themed “Dual Transformation Toward Eco-Industrial Parks,” in District 1, HCMC on June 25.
In his opening remarks at the Saigon Times ESG Forum, Pham Huu Chuong, deputy editor-in-chief of the Saigon Times Group, said that as global markets tighten ESG (Environmental, Social, and Governance) standards, Vietnam is approaching a critical juncture. Industrial parks – long the backbone of the country’s exports – must transform to avoid being left behind.
He noted that dual transformation, which combines green and digital transitions, is a prerequisite for adaptation and advancement. This parallel process drives sustainable growth, helps reduce emissions, creates quality jobs, and attracts responsible investment capital.
Global ESG in turmoil amid U.S. shift on climate commitments
In her insightful presentation at the forum, Pham Thi Ngoc Thuy, Director, Office of the Research and Development Board for the Private Economic Sector (Board IV), said that global ESG policies are undergoing significant divergence. This growing fragmentation, she noted, compels businesses to recalibrate their ESG strategies to align with the specific requirements of each market.
The current U.S. administration has reversed course on ESG-related policies as it issued a series of executive orders that dismantle earlier environmental commitments. The country has withdrawn from the Paris Agreement and the Just Energy Transition Partnership (JETP), and has suspended all funding tied to the Inflation Reduction Act (IRA).
This shift indicates that the U.S. is redirecting its focus from environmental and social goals toward prioritizing economic growth and energy cost control.
Nonetheless, several U.S. states are pushing ahead with ESG initiatives. In Colorado, a new law mandates that companies with annual revenues of at least US$1 billion disclose Scope 1 and 2 emissions starting in 2028, and Scope 3 emissions beginning in 2029. New York has also introduced climate-related regulations addressing greenhouse gas emissions and financial risks, closely aligning with California’s existing climate disclosure framework, which includes strict reporting deadlines and significant penalties for non-compliance.
“The ESG regulatory landscape in the U.S. is becoming increasingly fragmented, forcing businesses to comply with varying requirements depending on where they operate,” Thuy noted.
Unlike the U.S., the EU has maintained a consistent stance on sustainable development. On February 26, 2025, the European Commission officially unveiled the Omnibus Simplification Package, which proposes postponing the implementation of two key regulations – the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) – to 2028-2029 for companies scheduled to comply in phases 2 and 3.
In addition to extending compliance deadlines, the EU is also easing certain requirements, adjusting company size thresholds for reporting, removing some industry-specific standards, reducing audit obligations, and lengthening the ESG risk assessment cycle from annually to once every five years. Experts view this as a “golden window” for businesses to build robust internal ESG systems, shifting from a reactive compliance mindset to proactive capacity-building.
A critical gap in ESG readiness
A 2024 survey conducted by Board IV on the readiness of Vietnamese businesses for emissions reduction and green transition found that most companies have yet to adequately prepare for achieving these goals, Thuy said.
The survey revealed that 64% of businesses have made no preparations for transitioning to green operations. Only 3.7% had conducted a greenhouse gas inventory, while just 6.9% had set and disclosed emissions reduction targets across short-, medium-, and long-term timelines.
In addition, 16.2% of businesses had identified priority areas or key emission sources for potential reduction, while only 5.5% had taken concrete steps to cut emissions in selected core activities.
The findings highlight that most Vietnamese businesses remain slow in preparing for the green transition. Just 33.8% are concerned about domestic regulatory pressures, and only 33.1% are paying attention to sustainability standards in export markets.
Thuy said that Vietnam is at a major crossroads in reshaping its economy. Rather than continuing along the path of a “brown” economy – driven by polluting energy sources, resource depletion, and environmental degradation – Vietnamese businesses must pivot toward a more sustainable “green” economy, built on renewable energy and efficient resource use.
In the “brown” economy model, sectors such as energy extraction, manufacturing, agriculture, and transportation all contribute to rising emissions, environmental pollution, and ecosystem degradation. Additionally, issues such as overconsumption, lack of corporate social responsibility, and declining public trust present further areas of concern.
In contrast, the “green” economy model prioritizes decoupling economic growth from resource depletion. It encourages the adoption of renewable energy sources such as wind and solar power, along with greater energy efficiency and conservation. The model also places strong emphasis on ecosystem preservation, social equity, sustainable consumption, and corporate social responsibility.
Amid the global shift toward digitalization and green transformation, Thuy outlined four key solution areas to help Vietnamese businesses meet the evolving demands of international markets.
First, Vietnamese businesses need to diversify their markets and restructure distribution channels, particularly by exploring new markets such as the Middle East, while also optimizing domestic and traditional markets. Leveraging free trade agreements (FTAs) to expand trade partnerships is also strongly encouraged.
Second, strengthening strategic alliances and industry linkages is vital for boosting competitiveness. This includes forming clusters based on sectors or markets and actively engaging in public–private dialogues to help shape supportive policy frameworks.
Third, businesses need to proactively engage in dual transformation to advance their green transition roadmap and ESG reporting. This also involves adopting digital technologies in operations, production, and corporate governance, such as ERP (Enterprise Resource Planning), CRM (Customer Relationship Management), and big data, to ensure transparency and traceability.
Finally, in terms of investment, businesses should focus on strengthening their internal R&D capabilities and investing in the development of green, sustainable products aligned with global trends. This includes researching and developing core technologies and value propositions to create distinctive products and services that set Vietnamese enterprises apart in the marketplace.
