The imperative criteria to unlock opportunities
| ESG: E (Environmental), S (Social), and G (Governance) |
According to surveys in 2024, 80% of Vietnamese businesses have made ESG commitments, with an increasing focus on the governance aspect. Net Zero targets are now being considered at a more strategic management level. A Deloitte Vietnam survey found that 42% of senior executives believe climate change is one of the top three issues for their organization, and 61% predict that climate change will impact their company’s strategy and operations in the next 3-5 years.
 Thanks to good ESG practices, especially the G-Corporate Governance factor, many Vietnamese businesses are proactively accessing potential investment sources
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While there is interest and commitment, only about 44% of businesses have developed implementation plans for ESG. According to Bloomberg statistics, only about 3% of listed companies on the Ho Chi Minh City Stock Exchange (HOSE) have data for evaluation. The level of ESG information disclosure also only meets about 23% of the evaluation criteria, with many quantitative indicators.
A McKinsey study found that companies with strong ESG strategies can increase profits by up to 60% through cost savings, operational optimization, and better investment attraction. It is evident that businesses with good governance, proactive transparency, and a systematic approach to ESG will be able to “unlock” new opportunities. Evidence from the report by Shinhan Securities Vietnam (SSV) shows that Vinamilk, a pioneer in sustainable development in Vietnam, has attracted 300 foreign investment funds, including 126 ESG funds, thanks to its comprehensive, transparent reports and good governance.
G – Governance: Last but not Least
Governance plays a pivotal role in ensuring that ESG objectives are integrated into long-term plans and identifying and managing environmental, social, and governance-related risks, thereby minimizing negative impacts and capitalizing on growth opportunities.
Ms. Ha Thu Thanh, Chairman of the Vietnam Institute of Directors (VIOD), stated that governance will be the measure of social and environmental impact. Good corporate governance should encompass environmental and social values, so even though “G” is last in ESG, it should be considered the leading factor. When the environment and society are measured through corporate governance, it becomes a harmonious and well-directed sustainable development goal.
“Among the top 100 invested asset companies in ASEAN, Vietnam has only one company, Vinamilk. For example, Vinamilk has been investing in environmental issues and managing environmental impact for the last ten years,” added Ms. Thanh, citing a leading company in governance.
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In the 2024 sustainability assessment by the Ho Chi Minh City Stock Exchange, the governance score of a pioneering Vietnamese company in sustainable development, Vinamilk, reached 85%, with its disclosure and transparency aspect scoring 89%, significantly higher than the industry and market averages. This also shows that when ESG is incorporated into a company’s governance and operations early on, they not only achieve their own goals but also set a new standard for governance and lead the way for other businesses in sustainable development.
Pioneering Businesses: Going Beyond Vision and Strategy
More than a decade ago, Vinamilk established a sustainability committee where board members devised sustainability strategies for the company. Later, when the concept of Net Zero was not as prevalent as it is today, they also systematically included greenhouse gas emissions management and carbon footprint reduction in their sustainability reports.
Managing a massive system of 14 dairy factories and 14 dairy farms in Vietnam, governance has helped Vinamilk chart a clear path to emissions reduction. However, it is not just a long-term roadmap with three critical milestones to achieve net-zero emissions but also about improving the smallest operations. As a result of continuous improvement, Vinamilk reduced over 33,000 tons of CO2e across its factories, a 19% decrease compared to 2022, equivalent to planting over 3.2 million five-year-old green trees.
 Ms. Le Hoang Anh, Head of Internal Control Department for Quality Management and Standards at Vinamilk, shared at the 17th Global CSR & ESG Conference
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As shared by Ms. Le Hoang Anh, Head of Internal Control Department for Quality Management and Standards at Vinamilk, at the 17th Global CSR & ESG Conference in Ho Chi Minh City, most current practices focus on the E or S factors, possibly due to the closer association with environmental, social, community, and employee-related activities. However, governance is the leading and guiding factor in businesses’ sustainability practices. As such, corporate governance reflects the leadership’s commitment to sustainability, ensuring that policies, regulations, and actions are aligned with this direction.
Experts and specialized organizations also predict that ESG will continue to be a positive trend in 2025, supported by factors such as increased awareness among business leaders, the development of artificial intelligence (AI), pioneering businesses’ promotion, and global ESG trends.
Beyond the scope of businesses, green transformation, circular economy, low-carbon emissions, resource conservation, and sustainable development are among the key solutions for Vietnam to achieve its socio-economic goals for 2025 and progress towards its Net Zero 2050 commitment. Governance is the “conductor” in this context, ensuring that the production sector’s cogs mesh smoothly and the entire machine moves forward on the Net Zero journey.
| Vinamilk has just released its 2024 Sustainability Report on the theme of “Moment of Transformation,” demonstrating its systematic management of ESG goals, especially in aligning with global standards and best practices such as SDG, GRI, DSF, CDP, CSI100, and international standards like ISO. Previously, the company was recognized as one of the “Top 10 Best Corporate Governance Reports among Large-cap Companies” and “Corporate Governance Beyond Compliance.” |
– 08:36 10/06/2025
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