89% of Vietnamese Businesses Will Commit to ESG in 2–4 Years. The Wave of Shifting from Awareness to Action and Opportunities for a Sustainable Future

Hanoi, September 23, 2025 — The “ESG Progress Tracker 2025” report by PwC Vietnam reveals a remarkable leap in Vietnamese businesses’ journey toward implementing Environment, Social, and Governance (ESG) practices: 89% of surveyed business representatives state they have or are planning to establish ESG commitments within the next 2–4 years. This is a significant increase from 80% in the 2022 survey. This figure reflects a shift from awareness to action, especially among export-oriented businesses, banks, and listed companies.

Current Situation: Maturing but Clearly Differentiated

The survey (174 business representatives) indicates that ESG maturity in Vietnam is progressing but unevenly. Specifically, about 54% of businesses have already implemented ESG actions; 13% are in the planning stage; 22% are just starting; and 11% have not yet begun. Foreign Direct Investment (FDI) and listed companies often lead in implementation, while many private and family-owned businesses still have significant gaps.

ESG reporting is also becoming a common practice. 57% of businesses have now published ESG reports (up from 52% in 2022), and 43% have started to adopt standard frameworks like GRI or ISSB standards. However, the quality of disclosure remains a challenge: only about 32% of reports are audited, indicating limited assurance and transparency.

Motivations, Barriers, and the Perception Paradox

The report lists the main drivers for business action: 70% are influenced by legal and regulatory requirements, 40% by pressure from customers (especially the European market), along with pressure from investors and financial institutions. Conversely, only 16% of businesses consider cost reduction as the primary reason for adopting ESG, and 25% see benefits in accessing green finance. This shows that many businesses still view ESG as a compliance cost rather than an economic lever.

Regarding internal challenges, developing businesses face a lack of a clear strategy (70%), a lack of ESG expertise (60%), and incomplete measurement systems (54%). For more mature businesses, major barriers come from external factors like gaps in legal policy (45%) and economic instability (38%).

Financial Opportunities in Green Credit and Capital Markets

The development of domestic green finance is creating tangible opportunities for businesses to transition. According to industry analyses, green loans accounted for approximately 4.5% of total outstanding credit by the end of 2024, and green and sustainable bond issuances by banks like BIDV have received technical assistance from the World Bank. This indicates that the domestic financial market is embracing a sustainable finance framework. These financial sources are key tools for small and medium-sized enterprises (SMEs) to implement emission reduction projects, innovate technology, and upgrade operations.

However, the PwC survey shows that businesses are still calling for more support policies: 59% want financial assistance tied to sustainable development; 56% want green standards and certifications; and 55% request legislation with incentives to promote practical application.

Expert Perspective: From Risk to Growth Strategy

Mr. Nguyen Hoang Nam, Deputy General Director and Head of ESG Advisory Services at PwC Vietnam, notes that ESG has shifted from a “compliance activity” to a strategic factor that determines access to markets and capital, especially within global supply chains. He emphasizes that businesses need to integrate ESG into their core strategy, based on reliable data and building long-term internal capacity.

From an international finance perspective, organizations like the IFC and World Bank have increased financial support channels for Vietnam. This ranges from technical assistance for BIDV’s green bond issuance to climate capital commitments. This lays the foundation for the growth of domestic green financial products. Such support helps reduce the cost of capital for green projects with clear efficiency.

Positive Impact on the Future of Businesses and the Economy

When ESG is implemented systematically, the benefits extend beyond compliance:

  • Enhanced export competitiveness: Meeting environmental and human rights requirements helps businesses maintain and expand contracts with global brands.
  • Access to cheaper capital: Complete ESG reports and certifications increase opportunities for preferential loans, green bond issuance, or public policy incentives.
  • Long-term cost savings: Investing in energy efficiency and resource management reduces operational costs over time, turning ESG into a competitive cost advantage.
  • Better risk management: A robust ESG governance system helps businesses identify supply chain risks, regulatory fluctuations, and climate change in a timely manner, making them more resilient during crises.

Recommendations for a Practical Action Roadmap

To bridge the gap between commitment and results, the report and experts propose a comprehensive set of solutions:

  • Policy and Financial Incentives: Increase green funding, provide tax incentives for emission reduction projects, and create a clear legal framework for businesses to invest with confidence.
  • Capacity Building: Offer training programs, phased implementation roadmaps for SMEs, and support for setting up emissions measurement systems to turn data into KPIs.
  • Standardization and Transparency Assurance: Encourage reporting according to GRI/ISSB and increase the rate of independent audits for ESG reports to enhance information reliability.
  • Market and Investment Connection: Create a bridge between domestic businesses and foreign investors and global supply chains, leveraging the advantage of FDI enterprises to drive green technology transfer.

From Obligation to Strategy

The PwC 2025 report sends a positive signal: ESG is becoming part of business strategy, no longer just a compliance “debt.” The commitment of 89% of businesses to act in the next 2–4 years, along with the growing trend of reporting and a developing green finance market, puts Vietnam in a position to both protect the environment and enhance business value. The road ahead will require significant effort in capacity building, information transparency, and policy refinement. But if implemented in a synchronized manner, ESG can become a driver for green growth, attract high-quality investment, and elevate the brand of Vietnamese businesses on the international stage.

Source: “ESG Progress Tracker 2025” Report – PwC Vietnam. And collected from the internet.