Sustainability-oriented corporate governance: The implementation of ESG practices in Vietnam

Abstract

The article analyses the practical implementation of environmental, social, and governance (ESG) standards in corporate governance in Vietnam within the context of the growing global trend towards sustainable development. Based on secondary data analysis, the study assesses the level of ESG adoption across three key groups: large enterprises, small and medium-sized enterprises (SMEs), and banks and financial institutions. The findings indicate that while some pioneering firms have begun integrating ESG into their governance strategies, most enterprises still face significant barriers, including the lack of standardised frameworks and practical guidelines, limited financial and human resources, and insufficient supporting data systems. Notably, a clear gap exists between awareness and actual implementation of ESG, particularly among SMEs. Given these findings, the study proposes policy recommendations to promote ESG practices in Vietnam, including the completion of a national ESG framework, the enhancement of specialised human resources, the establishment of a centralised ESG database, and the strengthening of financial support mechanisms. These recommendations are expected to facilitate the integration of ESG into corporate governance, contributing to the development of a green and sustainable economy.