Vietnamese firms step up ESG game

Vietnamese firms step up ESG game

PwC's ESG Progress Tracker in Vietnam publication reveals that domestic businesses are making a strong shift from pledges to concrete action, reflecting higher ESG maturity levels while still grappling with gaps between compliance and genuine sustainable value.

PwC Vietnam is hosting the launch of its ESG Progress Tracker in Vietnam publication on September 23 in Hanoi. The publication provides a comprehensive picture of how Vietnamese enterprises are shifting from awareness to concrete action in the fields of environment, social, and governance (ESG), against the backdrop of growing global compliance pressures and increasingly explicit national sustainable development goals.

Overview of the event. Photo: Duc Thanh

Based on responses from 174 corporate representatives, the survey reveals that ESG maturity in Vietnam has made significant progress compared to 2022. A total of 89 per cent of businesses reported that they have already made or will make ESG commitments within the next two to four years, up sharply from 80 per cent three years ago.

The proportion of companies without any ESG plans fell to just 11 per cent, while more than half of respondents have already begun implementing commitments.

One of the survey’s most encouraging signals is the increasing involvement of senior leadership. Over two-thirds of businesses said their boards of directors are directly engaged in ESG matters, a figure that reflects a notable shift in corporate governance thinking compared to just a few years ago.

“ESG is no longer just a compliance exercise, it is a strategic imperative. With 45 per cent of Asia Pacific CEOs believing their companies won’t be viable in ten years without transformation, Vietnamese businesses must reinvent their models to decarbonise, digitise, and drive sustainable growth,” the report concluded.

However, the report also highlights inconsistencies in how companies are approaching ESG. Foreign-invested enterprises continue to lead, with 71 per cent having implemented ESG commitments, reflecting the pressure of global standards. Listed companies are catching up quickly, with 57 per cent having deployed ESG plans, driven largely by investor demands and regulatory requirements.

In contrast, private unlisted enterprises are moving at a slower pace, with only 27 per cent having adopted ESG practices and 23 per cent having no specific plans.

The survey further indicates that compliance remains the primary driver of ESG adoption in Vietnam as 70 per cent of companies cited legal requirements as their top reason for taking action, followed by stakeholder pressure with 40 per cent and direction from senior leadership with 39 per cent.

Conversely, only 16 per cent of businesses view cost reduction as a driver, while 25 per cent consider access to green finance a key factor, highlighting that the long-term benefits of ESG have yet to be fully leveraged.

“This gap reflects the reality that most companies still see ESG as a compliance cost, rather than a powerful lever to enhance operational efficiency and create value,” stated the report.

For companies at an early stage, PwC’s report points out that internal barriers are most significant, including the absence of a clear ESG strategy at 70 percent, lack of expertise at 60 percent, and underdeveloped measurement systems at 54 percent. Meanwhile, more advanced companies face external obstacles such as regulatory gaps at 45 percent and economic uncertainty at 38 percent.

Nguyen Hoang Nam, ESG Leader and Partner, Assurance Services, PwC Vietnam speech at the event. Photo: Duc Thanh

“Vietnamese businesses are entering a new phase of ESG maturity. The shift from planning to action is clear, but the journey ahead requires deeper integration, smarter data, and stronger collaboration. ESG is not just about meeting standards, it’s about building future-ready businesses,” said Nguyen Hoang Nam, ESG Leader and Partner, Assurance Services, PwC Vietnam.

VIR