Sustainability and ESG assessment
The terms ESG and sustainability are also used interchangeably in Vietnam. ESG is currently more commonly referred to than sustainability and the circular economy. The circular economy is more often mentioned recently as a growth driver, alongside the green economy and digital economy.
In corporate settings, ESG is most dominant, mainly due to market pressure from investors, financial institutions, and international customers. Sustainability and ESG reporting are mainly applied by exporters, international and big corporates under the requirement of stringent international markets, e.g., the EU, USA, and Japan. For the majority of SMEs and micro businesses, these concepts are still relatively new. Vietnamese enterprises implement the S (social pillar) best and confront the E (environment pillar) most in ESG reporting [1].
GRI standards and the SDG framework are the two most used for sustainability and ESG reporting in Vietnam [1]. The presence and importance of GRI increased when its first Vietnamese version was released in 2017. Last month, in July 2026, GRI Vietnam released its latest Vietnamese version, including universal, sector, and topic standards . They are free so that all enterprises in Vietnam, particularly SMEs, can access. [2]
Domestic companies can voluntarily apply sustainability and ESG reporting guidance and standards (recognized by Vietnamese authorities), especially if they want to get support from sustainable business programs or other advantages.
Since 2015, the Vietnam Chamber of Commerce and Industry (VCCI) has developed the corporate sustainability index (CSI) for domestic assessment. From 2016, companies can annually voluntarily participate in the benchmarking program. After assessment, the results will be announced publicly for top sustainability performance companies. According to VCCI’s CSI 2020 NAVIGATION BOOK, the CSI is developed based on reference to existing Vietnamese laws, GRI standards, ISO 26000, and the SDG framework. It includes four pillars of Economic, Environment, Social, and Governance.
In general, sustainability and ESG reporting are not yet mandatory by law in Vietnam but increasing application more under market pressure. However, Vietnam has a wide range of laws and legal regulations stipulating and regulating E, S, G in corporate management [1].
There are some specific cases where companies have to disclose ESG information. Circular 96 (2020) of the Ministry of Finance provides guidelines on disclosure of information on the securities market, including ESG data.
Circular 13 in 2023 of the Ministry of Planning and Investment (now the Ministry of Finance) guides the mechanism for implementing “sustainable business support program for 2022-2025 (Decision 167 (2022). The new program for 2026-2030 is stipulated in Decision 926 (2026). Circular 13 provides guidance to assess sustainable business models including circular economy, inclusiveness, and ESG. The guidance was specified in the handbooks for all three business models were published.
Circular economy assessment
Vietnam issued Green Taxonomy according to Decision 21 (2025). Circular economy projects belong to the category. Domestic standalone circular economy standards do not exist in Vietnam.
General framework and measures to implement circular economy projects are located in Law on Environment 2020, Decree 08 (2022), and Decision 222 (2022). However, criteria for circular economy projects are not clearly defined. “There is also a lack of synchronized indicators, evaluation thresholds, verification methods, and documentation systems to prove that projects meet circular economy criteria.” Specific technical criteria are also required to assess circular economy projects in various sectors. [3, 4]
Assessment and categorization of circular economy projects can therefore be confusing and less effective. This can hinder credit and effective investment in circular economy projects. The author supposes that, from market competition and real business value perspectives, along with domestic and international guidance documents, companies can consider existing international circular economy standards, e.g., ISO 59000s (not yet domesticized into Vietnamese standards TCVN) and the Global Circularity Protocol. The decision depends on their objectives and visions for the circular economy transition.
Will Vietnam’s standards for sustainable projects be released soon?
Framework and criteria identifying green, circular economy, ESG projects are finalized. They are developed from existing laws (legal compliance) and international standards (e.g., GRI, IFRS S1 & S2, ASEAN Taxonomy). This will serve as a more transparent and effective foundation to support businesses in the transition to a green and circular economy. Examples of support include a 2% annual state budget interest rate subsidy and other green credit programs. [3, 4]
Next article: Regional comparison of circular economy transition between Indonesia and Vietnam
References
- UK PACT & AED/MPI (2024): Output 1: Handbook on ESG implementation framework and ESG reporting
- VnEconomy (07/2026). Đưa tiêu chuẩn “xanh” quốc tế tiếp cận với SME Việt Nam
- VnEconomy (06/2026). Hướng dẫn xác định dự án xanh, đáp ứng tiêu chí tuần hoàn và áp dụng khung ESG
- Ministry of Agriculture and Environment (2026). Lần đầu tiên có khung tiêu chuẩn môi trường, xã hội, quản trị cho dự án
