NAVIGATING ESG REPORTING IN VIETNAM

The primary objective of this technical guidance document is to enable Vietnamese enterprises to understand and implement environmental, social, and governance (ESG) reporting standards. The document provides practical advice for businesses and organizations to enhance their sustainability practices, measure and disclose their performance, and establish clear goals and action plans to contribute towards a more sustainable future. In a world facing unprecedented challenges in terms of social inequality, environmental degradation, and economic instability, businesses have a significant role to play in addressing these issues and fostering positive change. Adopting ESG practices can position enterprises to potentially take advantage of the market shifts that are emerging as the world adapts to these challenges.

By embracing ESG principles, businesses can make a positive impact on human rights and the environment, improve long-term financial performance, and strengthen their competitiveness and resilience in the global marketplace. The Government of Vietnam is responding to these opportunities by developing guidance and tools for ESG disclosure and has issued sustainability reporting guidance for publicly listed enterprises (see Section 2.2 - Part II).

To support the Government of Vietnam’s efforts to strengthen private sector competitiveness, the U.S. Agency for International Development (USAID) is collaborating with the Ministry of Industry and Trade (MOIT) to develop guidance on ESG and other climate change reporting standards. To that end, USAID engaged a consortium led by RCEE-NIRAS to prepare the following document on how to navigate ESG reporting and funded the work through the USAID INVEST project. RCEE-NIRAS consulted with Vietnamese business associations to understand priorities and information needs and based on these discussions prepared the following technical guidance document which is organized into three parts: 1) understanding ESG, 2) ESG context in Vietnam, and 3) integration of ESG in Vietnamese businesses.