PwC Vietnam recently released its 2025 ESG Performance Survey Report, highlighting a clear shift among Vietnamese businesses from awareness to tangible action in ESG. 

The report showed that 89 percent of surveyed businesses have either implemented or planned to commit to ESG within the next 2-4 years, a significant increase from 80 percent in 2022. The percentage of companies without any ESG plan dropped nearly by half to just 11 percent.

More importantly, the market is maturing rapidly, with over half (54 percent) of businesses having already implemented ESG commitments.

However, different types of businesses adopt ESG at varying paces. Foreign direct investment (FDI) enterprises lead with 71 percent having committed to implement ESG, largely due to compliance with global standards.

Listed companies are catching up quickly, with 57 percent having rolled out ESG plans, driven by investor pressure and legal regulations.

Meanwhile, private and unlisted businesses have made progress but are falling behind. Only 27 percent have made ESG commitments, while 23 percent still have no plans. This reflects greater barriers or lower prioritization in ESG practices.

The drivers for ESG adoption in Vietnam have become clear and compelling, shaped primarily by external pressures and leadership direction.

Up to 70 percent of surveyed businesses cited legal compliance as the top motivator for ESG action, making it the primary reason, followed by pressure from stakeholders (40 percent) and directives from senior leadership (39 percent). Only 16 percent viewed cost reduction as a motivator for ESG implementation.

Similarly, only 25 percent saw access to financing as a key driver, indicating that the benefits of green finance are either not well understood or not easily accessible.

Regarding reporting maturity, 57 percent of businesses have conducted ESG reporting, and 43 percent are adopting formal standards like GRI or ISSB.

As Vietnamese businesses move from ESG commitments to concrete actions, they face a range of new challenges that vary by maturity stage, according to the report.

For businesses in the development stage, internal barriers dominate, including a lack of clear ESG strategy (70 percent), insufficient ESG expertise (60 percent), and incomplete measurement systems (54 percent). 

Meanwhile, more mature businesses encounter external obstacles, such as gaps in legal policies (45 percent) and economic instability (38 percent), which hinder scaling up ESG efforts.

The report concludes that ESG is no longer just a compliance activity but a strategic necessity. With 45 percent of Asia-Pacific CEOs believing their businesses won’t survive the next decade without transformation, Vietnamese enterprises must redesign their business models to reduce carbon emissions, digitize, and pursue sustainable growth.

Greenwashing won’t last long

Nguyen Hoang Nam, Deputy General Director of PwC Vietnam, stated that ESG has become a norm. However, he cautioned against greenwashing and warned that such practices are unsustainable, as markets reject a lack of transparency. Businesses cannot merely make claims or adopt superficial green measures; they must demonstrate substantive actions.

He noted that Vietnam’s economy, heavily reliant on exports to markets like the EU, US, and Asia, faces significant risks from new tax policies and regulations. Thus, ESG adoption should be seen not only as a compliance requirement but also as a risk management strategy to maintain a position in global supply chains.

In reality, many Vietnamese businesses are feeling pressure from international partners and customers, particularly in Europe, who demand ESG proof. This pushes domestic companies to take concrete actions to meet these expectations.

Nam cited survey results from 774 businesses, showing that 89 percent have ESG commitments at varying levels: 54 percent have implemented them, 13 percent have plans but haven’t started, 22 percent are in early stages, and 11 percent have yet to begin.

FDI enterprises show a high implementation rate (71 percent). Listed companies also demonstrate significant action. However, private and family-owned businesses still have notable gaps.

“This indicates that ESG maturity in Vietnam is progressing but uneven. Some businesses are acting decisively, while many remain on the sidelines,” he said.

In the near future, Vietnamese businesses need to integrate ESG into their core business strategies rather than treating it as a mere compliance obligation. Proactive investment, substantive actions, and transparency will not only help businesses meet international market demands but also unlock opportunities to access green capital, improve operational efficiency, and build trust with customers and investors.

Tam An