ESG-driven productivity framework

Tran Hau Ngoc, Vice President of the Commission for Standards, Metrology and Quality of Vietnam (STAMEQ) and Director of the Asian Productivity Organisation (APO) Vietnam, said that against the backdrop of accelerating global sustainability trends, the project “Sustainable Productivity Development Based on ESG” is set to roll out in 2026.

The initiative will assist Vietnamese enterprises in applying Environmental, Social and Governance (ESG) principles and producing reports aligned with international standards such as GRI and SASB. ESG is increasingly becoming a central governance framework, helping businesses enhance credibility, improve resource efficiency and lay the groundwork for long-term growth.

Speaking at the project launching ceremony, Nguyen Tien Huy, Director of the Office for Sustainable Business Development under the Vietnam Chamber of Commerce and Industry (VCCI), emphasised that ESG goes beyond compliance reporting, representing a comprehensive transformation in corporate governance and operations.

The adoption of ESG principles enables enterprises to restructure production toward energy efficiency, emissions reduction, green technology application and circular economy practices, while reinforcing transparency and risk management, supporting a transition from growth driven by scale to growth driven by quality. ESG is also emerging as a key benchmark used by investors, partners and markets to assess corporate performance.

Despite growing awareness, most Vietnamese enterprises have yet to develop the capacity to produce ESG reports that meet international standards, even as export markets such as the EU, the US and Japan tighten requirements on sustainability disclosure and carbon traceability. Through initiatives like the Development of Demonstration Companies (DMP) programme, businesses are supported in assessing ESG readiness, formulating strategies and implementing improvement plans.

The adoption of green technologies and sustainable processes could cut resource waste by up to 15% within five years, while improving energy efficiency, reducing operating costs, enhancing product quality and strengthening risk management. ESG, therefore, is increasingly seen not as an added expense but as a productivity enabler that helps companies identify gaps and map out effective transformation pathways.

Phan Thanh Son, a representative of the APO Secretariat, noted that awareness of ESG has improved markedly amid growing global attention and geopolitical uncertainties. The APO is promoting wider ESG adoption to help enterprises boost sustainable productivity while improving resilience and preparedness for future disruptions, with an integrated approach linking productivity with green and sustainable development.

Enhancing enterprise performance

Ngoc said ESG adoption in Vietnam remains concentrated mainly among large corporations, foreign-invested enterprises and listed firms, while small and medium-sized enterprises still face significant limitations.

The 2026 ESG project will be piloted at Bach Mai Hospital, Rang Dong Light Source and Vacuum Flask JSC, Tran Phu Electrical Mechanical JSC, and Vitto Group JSC. Through the programme, STAMEQ expects participating organisations to strengthen ESG awareness while developing practical tools, action plans and implementation roadmaps aimed at improving productivity, product quality and operational sustainability.

Huy added that multinational corporations are increasingly requiring suppliers to meet ESG standards. Companies lacking ESG reporting may struggle to secure major contracts, face potential carbon taxation if emissions are not controlled, or risk exclusion from supply chains due to non-compliance with labour standards. In the construction sector, ESG adoption supports a shift from fossil fuels to biomass energy, material reuse and reduced CO₂ emissions, changes that lower long-term costs and enhance brand credibility among international partners.

A representative of FPT Group said ESG principles underpin the group’s development strategy. In implementing ESG governance, FPT has expanded the application of the OKRs (Objectives and Key Results) management model, aligning individual, departmental and corporate goals to ensure strategic consistency while improving operational efficiency and labour productivity.

At Vingroup, gradual ESG integration has also produced positive outcomes. Corporate governance is viewed as a core pillar of sustainable growth, helping safeguard foundational values. The group has introduced governance systems tailored to business objectives at different stages while balancing stakeholder interests, thereby strengthening competitiveness and supporting sustainable organisational development./. VNA