1 | Practicing ESG in Vietnam

PRACTICING ESG IN VIETNAM

FACTS AND FIGURES

This report was prepared by the expert team at MCG Management Consulting,
under the framework of the 'Accompanying Businesses Toward Sustainable
Development' program, sponsored by MCG
 MCG Group | 2

TABLE OF CONTENTS

INTRODUCTION Context of ESG practices and information disclosure in Vietnam 7

Current situation of ESG practice and disclosure at listed 15

01. companies

02. ESG performance analysis 19

03. Keys ESG topics 25

04. Challenges in ESG reporting 103

3 | Practicing ESG in Vietnam

Acknowledgements

The report "ESG Practices in Vietnam – Data and This report would not have been possible without
Current Situation" is the result of a thorough the valuable professional contributions from ESG
research process, conducted with dedication and experts within the ESG Consultant Network, a group
close collaboration between experts, consultants, of outstanding alumni from the ESG Practice
and partner organizations. We would like to express Consultant Network Development Program
our sincere gratitude to all individuals and initiated by the Enterprise Development Agency - the
organizations who have contributed to the creation Ministry of Planning and Investment (now the
of this report. Department for Private Enterprise and Collective
Economy Development, Ministry of Finance). Their
First and foremost, we would like to thank the
practical insights, scientific critique, and voluntary
research team from MCG Management Consulting –
contributions have been an invaluable resource,
the entity responsible for conducting the survey,
helping the report accurately reflect the current
analysis and report compilation, with the active
situation and align with the implementation needs of
participation of the following members:
ESG practices in Vietnamese enterprises.
▪ Lead researcher: Nguyen Cam Chi
▪ Advisor: Le Phuong Anh, Ngo Minh Anh We would also like to acknowledge the
▪ ESG data analysis: Ngo Manh Hiep companionship and support of CareerViet during
▪ Data processing, scoring, and systems team: the survey process, in connecting with businesses
1. Do Phuong Anh and sharing research findings with the community of
2. Nguyen Tien Minh experts and employers – essential partners in
3. Dang Nguyen Trung Anh promoting ESG from the perspective of sustainable
4. Nguyen Dieu Thuy human resource development.
5. Tran Thi Ngoc Mai
Once again, we sincerely thank all contributors for
6. Khong Dieu Linh
their dedication, intellect, and belief in the long-term
7. Le Thi Hong Minh
value of promoting ESG in Vietnam. We hope this
8. To Hoai Giang
report will serve as a useful reference and a source
9. Le Khanh Linh
of inspiration for meaningful ESG initiatives in the
▪ Data and visual compilation: Luong Anh Phuong
future.
▪ English Translation: Ngo Manh Hiep, Le Ha Anh

Coming Soon: Report ESG – From Commitment To Profit Expected to be released in 11/2025
Research report on the correlation between ESG implementation and financial performance
 MCG Group | 4

Executive Summary
Practicing ESG in Vietnam – Facts and Figures was conducted to provide a comprehensive and in-depth view
of the level of ESG integration in the operations of publicly listed companies in Vietnam. Surveying nearly 500
companies included in the VNX Allshare Index, the report not only reflects the current situation but also
highlights positive developments, market trends, and the growing maturity of the Vietnamese business
community on its journey toward sustainable development.

Approach and Structure

Unlike conventional descriptive reports, this report is structured around key issues, analyzing each aspect of
the three ESG pillars (Environmental, Social, Governance), comparing them over time, with international
practices, and highlighting good practices in Vietnam. This approach enables readers to clearly understand
the trends and progress of each ESG component.

Key Developments and Notable Trends:

Stronger 93% of businesses have committed to ESG, with 50% incorporating it

Commitment and into their core strategy. The number of independent sustainability of
Transparency:
increased from 14 (2021) to 33 (2024), indicating that ESG is gradually
becoming a substantive practice

Society is a Strength, Businesses perform well in social aspects (health, safety, labor
Environment is a standards - ~4.0/5), however , environmental performance remains
Weakness:
low (~ 1.5/5), with 61% still lacking emissions reduction plans.

Catching the Net Zero Although no businesses have officially achieved Net Zero, some
Trend prominent names (Vinamilk, Bao Viet, VPBank) have shown clear
roadmaps for transitioning to a low-carbon economy.

Approaching The adoption of GRI, TCFD, ISSB, SASB,… is increasing significantly,

International helping businesses to meet the demands of investors and intergate
Standards
into the global value chain.

Motivation from the Pressure from investors, the global supply chain, and polices such as
Market and Policies VNSI, Circular 96, the 2020 Environmental Protection Law… are
driving businesses to adopt ESG stronger.

In just a few years, ESG in Vietnam has made clear progress – transitioning from awareness to action. Despite
numerous challenges, the foundation for ESG development in Vietnam is increasingly solid. This report is
expected to be a useful and inspiring resource for Vietnamese businesses to continue their sustainable
development and deeper integration into the global market.
5 | Practicing ESG in Vietnam

Objectives and scope of research

Objectives
The report 'Practicing ESG in Vietnam – Facts and Figures' was developed to offer a comprehensive and
thought-provoking overview of ESG implementation in Vietnam. As ESG increasingly emerges as a critical
component of business strategy and operations, this report serves as a valuable resource for stakeholders
seeking to understand its significance and assess the current progress of Vietnamese enterprises on the
journey toward sustainable development. Our writing approach is intentionally accessible yet respectful,
aiming to foster meaningful engagement with businesses, investors, regulators, and other key players in the
capital market.

The following objectives are aimed to achieve:

1. Evaluate current situation of ESG practices

We comprehensively assess the reflecting the level of ESG

current status of ESG practices integration in their current
among listed companies in business operations
Vietnam, thereby accurately

2. Analysis by ESG pillar

The report provides an in-depth specific aspects. This detailed

analysis based on each approach helps readers easily
Environmental, Social, and identify prominent practice
Governance pillar across various trends for each individual issue
within each ESG pillar

3. Identify trends and good practices

We help readers gain insights practices in the market,

into pioneering businesses in illustrated with real-world
ESG adoption and highlight examples. These success stories
emerging best practices. The not only provide valuable lessons
report showcases successful but also inspire many other
initiatives and outstanding businesses to follow suit
 MCG Group | 6

4. Recommendations and solutions

Based on the analysis results, we sustainability performance of

provide specific recommendations businesses, while also supporting
and solutions to enhance the Vietnamese enterprises in
quality of ESG practices. The international integration by
proposals focus on improving the meeting global ESG standards.

5. Reference basis for stakeholders

Through this report, we aim to document for policymakers,

provide a valuable reference businesses, and investors.

We hope this report serves as both an informative resource and a source of inspiration. By taking the time
to review its contents, readers can gain valuable insights into the current ESG landscape and emerging
trends in Vietnam, along with practical recommendations for action. Our ultimate goal is to foster a
sustainable Vietnamese business community that meets investor expectations and strengthens its
presence on the global stage

Scope of the research

This study aims to achieve an ambitious yet Notably, the research utilized the VNX Allshare
essential goal: to explore and evaluate the level of index as a "navigational compass". This index
ESG practices among listed companies in Vietnam, consolidates the listed stocks on HOSE and HNX,
the research team has chosen to survey and assess with criteria for selecting companies based on
secondary information from the disclosed reports liquidity, market capitalization, the transparency of
of companies in the VNX Allshare index, specifically information, and the ease with which share can be
focusing on 495 listed companies on the two transferred. These characteristics make VNX
largest stock exchanges in the country – HOSE and Allshare not only representative of various
HNX – to provide a comprehensive picture of the industries but also a true reflection of the overall
current stock market. market movement.

The data was gathered from reliable sources: Through VNX Allshare, the research has a solid
annual reports, financial reports, corporate foundation for approaching ESG data in an
governance reports, and dedicated questionnaires objective and comprehensive manner.
for business leaders and experts in the field. Consequently, the analysis and recommendations
Beyond simply compiling the data, the team made will be valuable both academically and
conducted an in-depth analysis of secondary data practically - contributing to the further
to uncover the clearest and most objective insights advancement of listed companies in Vietnam on
into ESG practices within these companies. their journey towards sustainable development.
7 | ESG practices in Vietnam

The ESG Landscape and

introduction Reporting Framework in

Vietnam
 MCG Group | 8

The global ESG wave:

Has Vietnam joined the game?
As climate change and sustainable development become global priorities, ESG – Environment, Social, and
Governance – is reshaping the way businesses operate. From multinational corporations to small and
medium-sized enterprises, ESG is no longer a choice, but a necessity for survival and sustainable growth in a
world full of new risks and expectations.

1
Pressure from investors and consumers is younger generation – are increasingly
increasing rapidly. Investment funds and choosing brands that are responsible for
international financial institutions are society and the environment. ESG has
prioritizing capital flows into companies with become the "ticket" for businesses to
clear sustainable development strategies. At retain customers and attract investment
the same time, consumers – especially the capital.

2
The global ESG landscape is also being of these set a threshold of transparency
legislated. From the European Union with and compliance that international
the CSRD Directive, to the United States with companies – including Vietnamese
ESG disclosure requirements from the SEC, companies with global supply chain links –
and recently the ISSB Standards by IFRS – all cannot ignore.

3
Green finance and ESG are also changing the evaluation criteria. Companies that fail to
approach to capital. Many banks and keep up will lose their advantage in
financial institutions have integrated ESG accessing favorable funding sources.
factors into their credit and investment

In response to this global wave, Vietnam officially made its commitment at COP26 in 2021 to achieve net-zero
emissions by 2050. This is not only an international promise but also the beginning of a series of ESG policies in
a developing nation:

National strategy Green growth Development

on climate change strategy 2021 roadmap of carbon
by 2050 - 2030 market from 2028

Directions for emission Encourage businesses to Opening up a carbon

reduction, promoting invest in clean credit mechanism as a
renewable energy, and technology, optimize new market incentive for
circular economy resources. businesses

From these initial commitments, the question arises: Has Vietnam truly entered the ESG game - or is it still
at the starting line?
9 | Practicing ESG in Vietnam

Overview of the ESG regulatory framework

in Vietnam
Current regulations related to ESG
Vietnam has issued various legal documents to promote ESG adoption among businesses, with notable
examples including:

Law on Environmental Circular

Protection 2020 96/2020/TT-BTC
Regulates on the Provides specific
responsibilities of guidelines on ESG
businesses in waste information
and emissions disclosure,
Law on Enterprises management, natural Decree encouraging
2020 resource protection, 155/2020/ND-CP companies to report
Sets out and environmental Regulates on according to
requirements for impact reporting information international
corporate disclosure in the standards
transparent securities market,
governance, requiring listed
shareholder rights companies to report
protection, and ESG factors in their
social responsibility annual reports.
 MCG Group | 10

ESG reporting standards and frameworks in Vietnam

Vietnamese businesses are gradually approaching and adopting international ESG standards to enhance
transparency and integrate with the global market.

Global Reporting Sustainability Accounting Task Force on Climate- International Sustainability

Initiative (GRI) Standards Board (SASB) related Financial Standards Board (ISSB)
Disclosures (TCFD)
The most widely used ESG reporting tailored Recommend that The new ESG standards
sustainability reporting to industry-specific companies disclose from IFRS standardize
standards, providing characteristics, helping information on risks global sustainability
key metrics to measure investors understand and opportunities reporting and will soon
a company's ESG the ESG risks and related to climate become mandatory in
impact. opportunities of each change many countries
company.

Corporate governance evaluation standards in Vietnam

In addition to ESG standards, Vietnam also has specialized frameworks for corporate governance evaluation:

Vietnam Corporate Governance Principles 2019:

Issued by the State Securities Commission and the
International Finance Corporation (IFC), these
principles promote transparent and effective
corporate governance.

Corporate Governance Principles of G20/OECD:

An international set of standards for corporate
governance, recommending best practices on
shareholder rights, information transparency, and
board of directors' responsibilities.

ASEAN Corporate Governance Scorecard (ACGS):

A tool for assessing corporate governance
compliance according to ASEAN standards, helping
to compare governance effectiveness across
companies in the region.
11 | Practicing ESG in Vietnam

Based on the ESG context in Vietnam, it is evident companies. This report will not only help determine
that both global and domestic factors are the degree of compliance and transparency among
increasingly pressuring companies to implement companies but also contribute to identifying
ESG practices and enhance information barriers, challenges in the implementation process.
transparency. While Vietnam has made significant Additionally, the research will offer
strides in developing its legal framework and recommendations to promote ESG practices,
encouraging companies to adopt ESG, practical improve the quality of reporting, and help
implementation still faces numerous challenges. Vietnamese businesses better align with
The differences between industries, company sizes, international standards.
and the readiness to adopt ESG have yet to be fully
This research will play a crucial role in assisting
assessed.
regulatory bodies, businesses, and investors in
Therefore, researching the level of ESG gaining a deeper understanding of ESG in Vietnam,
implementation and disclosure in Vietnam is thereby enabling the development of appropriate
essential to gain a comprehensive understanding of strategies and policies for sustainable growth in the
the current state of ESG practices among listed future.
 MCG Group | 12

The ESG reporting landscape of listed companies:

A few leaders – many lagging
Number of listed companies publishing standalone ESG reports
Only a small portion of listed companies in Vietnam The issuance of separate ESG reports is usually
publish the standalone ESG reports, distinct from concentrated among large, market-leading
their annual reports or integrated sustainability companies – those that aim to meet higher
reports. While regulations require ESG disclosures standards of transparency and governance.
within annual reports (covering emissions, energy According to an official from the SSC, the most
use, water consumption, environmental law efficient companies often “go beyond the usual
compliance…), few firms exceed this baseline. standards” by creating independent sustainability
Statistics from the State Securities Commission reports alongside their annual reports. For example,
show that, during the 2022 reporting season, only Vinamilk is recognized as the only Vietnamese
19 companies (~3% of nearly 600 on HOSE and company included in the "ASEAN Asset Class" for
HNX) published separate sustainability reports, corporate governance, due to its years-long effort to
aside from their annual reports. By 2024, the fully disclose separate sustainability reports in
number increased to about 33, but this still accordance with international standards. Overall,
represents only around 5% of the total listed the limited number of companies with independent
companies. The majority of other companies ESG reports reflects that this practice is still
continue to incorporate ESG information into their relatively new in Vietnam and not yet widespread,
annual reports or extended annual reports. although it is gradually being encouraged.

Trend in the growth of ESG reports over the years (2020–2024)

In recent years, the number of listed companies Statistics from the Listed Company Evaluation
issuing separate ESG/sustainability reports has (VLCA) – the annual award assessing the reports of
shown a steady upward trend. Each year, an listed companies – show that the number of
increasing number of companies are issuing separate ESG reports has increased over the years
independent ESG reports for the first time, (Chart 1).
reflecting a positive shift in awareness and
Overall, the number of companies issuing
information transparency.
independent ESG reports has nearly doubled in 3
Chart 1: Number of listed companies issuing years, from under 20 companies (before 2022) to
separate ESG reports (2021–2024). over 30 by 2024. This trend is expected to continue
40 33 in the coming years as the demand for greater
30 transparency in ESG information grows. The sharp
21
19 increase in 2024 is notable – the highest in the 12
20 14
years since sustainability reports began being
10
evaluated in Vietnam. However, it should be
0 emphasized that, compared to the hundreds of
2021 2022 2023 2024
listed companies, the share of those with separate

The data shows continuous growth, from 14 ESG reports remains modest. This highlights the

companies in 2021 to 33 companies in 2024 significant room for expanding ESG reporting

(source: SSC, HOSE) practices in Vietnam, especially as awareness and

pressure from investors on ESG issues increase.
13 | Practicing ESG in Vietnam

Common ESG reporting standards &

reasons for adoption
Along with the increase in numbers, international ESG reporting standards and frameworks are increasingly
being adopted by Vietnamese companies to enhance the quality and reliability of their reports. Below are the
most commonly used standards by Vietnamese companies, along with the reasons for their popularity:

Global Reporting This is the most popular sustainability Vietnamese companies to use GRI to
Initiative (GRI) reporting standard in Vietnam ensure their reports follow best
currently. GRI provides practices. GRI helps companies fully
comprehensive guidance for report on important ESG aspects,
disclosing a company's economic, ensuring transparency and enabling
environmental, and social impacts. international comparability. Adhering
Many companies choose GRI to GRI also meets the expectations of
because it is widely recognized many foreign investors and aligns
globally and recommended by with the sustainable development
regulatory bodies. In fact, the direction encouraged by the
IFC/SSC guidance has encouraged government.

Sustainability In addition to GRI, some advanced usefulness for investors. Reasons for
Accounting companies have started integrating popularity: SASB is used to
Standards Board the SASB standards into their reports. complement GRI, helping companies
(SASB) SASB provides ESG indicators report ESG factors that are directly
tailored to specific industries, linked to financial performance and
focusing on the financial materiality industry-specific risks and
of ESG issues. In Vietnam, guidelines opportunities. This is particularly
have also mentioned the alignment of important for investors and
companies' non-financial information shareholders who want to clearly see
with international standards such as the financial impact of sustainability
GRI or SASB to enhance its factors.
 MCG Group | 14

Task Force on These are new frameworks related to Vietnam, some large companies have
Climate-related climate risk reporting and integrated started exploring and piloting the
Financial sustainability reporting. TCFD ISSB/TCFD standards to stay ahead
Disclosures provides reporting recommendations of the trend. Reasons for popularity:
(TCFD) & on climate-related risks and Implementing TCFD helps companies
International
opportunities, focusing on four meet international investors'
Sustainability
pillars: governance, strategy, risk demands for climate risk
Standards Board
management, and metrics & targets. transparency, especially as Vietnam
(ISSB)
Meanwhile, ISSB (under IFRS) commits to Net Zero by 2050. The
recently issued global sustainability ISSB standards are expected to
reporting standards (IFRS S1 and S2 become a global mandatory standard
in 2023) to establish a common similar to IFRS accounting standards,
ground for ESG reporting worldwide, so familiarizing with them early will
with ISSB's S2 standard fully help Vietnamese companies avoid
integrating TCFD's climate-related falling behind and ease access to
reporting recommendations. In international capital markets.

Other standards In addition to the frameworks financial and non-financial reporting,

(SDGs, CDP, mentioned above, many Vietnamese although in Vietnam, the adoption of
integrated, etc.) companies also reference the United integrated reporting is still in its early
Nations Sustainable Development stages. Reasons for popularity: Linking
Goals (SDGs) in guiding the content of reports to the SDGs helps companies
their reports or participate in demonstrate their contributions to
specialized reporting programs. For national and global sustainable
example, some listed companies development goals, while reporting
reported under the CDP (Carbon under CDP or integrated frameworks
Disclosure Project) program to disclose helps meet more specialized
their emissions and carbon requirements from rating organizations
management data. Furthermore, the or international partners (e.g., foreign
concept of integrated reporting is also buyers requiring transparency on
mentioned as a trend that combines carbon emissions, etc.).

Vietnamese companies are gradually diversifying their adoption of ESG standards. Statistics for 2024 show
that the number of companies reporting according to international standards has increased by 40% compared
to 2023, reflecting a strong trend of integration. The application of standards such as GRI, SASB, TCFD, ISSB
helps improve the quality and reliability of ESG reports, while making the company's information easier to
compare with international practices. This is also a way for companies to demonstrate their commitment to
sustainable development in a systematic and transparent manner, thereby enhancing credibility with
investors, partners, and regulators. In the context of increasing interest from stakeholders (investors, financial
institutions, consumers, etc.) in ESG, compliance with and the correct selection of appropriate reporting
standards will help Vietnamese companies enhance their competitiveness and better access sustainable
capital sources.
15 | ESG practices in Vietnam

Chapter

01
The current state of practices
and disclosures regarding ESG
at listed companies.
 MCG Group | 16

Commitment to ESG Goals

A majority of Vietnamese listed However, the level of specific to annual reports) is increasing
companies have expressed commitment is still uneven: less rapidly. In 2023, 33 listed
commitment to ESG than half (48%) of companies companies issued separate
(Environmental, Social, and have set long-term ESG goals of sustainability reports, a sharp
Governance). According to PwC’s more than 5 years, and only 8% increase compared to 21
2024 report, 93% of listed firms have announced greenhouse gas companies the previous year. This
declared ESG commitments, emission reduction goals. is a record number, reflecting the
higher than the national average Notably, as of early 2023, no trend of more and more
(approximately 80%). This Vietnamese company has had a companies proactively disclosing
indicates that awareness of Net Zero target validated by the ESG information fully and
sustainable development among SBTi (Science Based Targets seriously. The fact that many
listed companies is very high. initiative). companies participate in rankings
Most large firms have disclosed such as the Vietnam
ESG commitments are
long-term sustainability goals and Sustainability Index (VNSI) or win
increasingly materialized through
integrated ESG into business awards for PTBV reporting shows
information transparency and
operations. In fact, 96% of that ESG commitments are
reporting. The number of
surveyed companies shared gradually becoming a new
companies preparing separate
sustainable development goals standard in the listed enterprise
sustainability reports (in addition
for the upcoming period. community.

Percentage of companies by ESG strategy’s stage: established, implementing, or initial

Although most listed companies are aware of ESG, the level of implementation varies. According to a 2022
PwC and VIOD survey, companies fall into three groups:

44% of listed 36% of companies are 20% of companies

companies report in the planning phase, have no clear ESG
20%
having concrete ESG preparing to plans remaining in
44% strategies and plans, implement ESG within early exploration or
meaning they are the next 2–4 years. without a defined
actively integrating These companies have roadmap. This group
36% ESG into operations. made commitments has not yet included
This group leads in but are still building ESG in their short-term
incorporating ESG into roadmaps, reflecting a strategy of 2-4 years,
business strategy. cautious approach to reflecting lower overall
Established Implementing
ESG adoption. readiness.
Initial

Overall, 80% of listed companies have developed or are planning to implement ESG strategies, with a growing
proportion already having clearly defined strategies. This aligns with the broader trend in which ESG is no
longer a voluntary option but is gradually becoming a requirement for listed companies. However, around 1/5
of businesses still need to improve their awareness and formulate more concrete plans to keep up with the
sustainable development trend.
17 | Practicing ESG in Vietnam MCG Group | 17

Key Factors Behind ESG Implementation Among Companies

There are many factors that

motivate listed companies to
implement ESG, including both
external pressures and internal
benefits.

The main factors include:

Investor Customer Legal & regulatory Competitive

pressure demands requirements advantage

Investor The growing interest of shareholders companies seeking to attract capital

pressure and investment funds (especially must commit to meeting these
international investors) places pressure requirements. According to the survey,
on businesses to improve their ESG up to 40% listed companies in Vietnam
scores and sustainability transparency. stated that pressure from investors and
Many investors now consider ESG stakeholders was a key motivator for
criteria essential for making investment implementing ESG practices.
decisions. Consequently, listed

Customer Customers, especially younger the requirement to comply with ESG

(Consumer) demographics (Millennials and Gen Z), standards from global supply chains is
Demands are increasingly favoring sustainable also a major motivation. Meeting
products and services. This green customer expectations for
consumer trend subjects companies to environmental and social responsibility
prioritize ESG to match consumer enhances brand reputation and
preferences and maintain customer consumer trust.
loyalty. For many exporting companies,
 MCG Group | 18

Legal & The legal framework surrounding In addition, the Ho Chi Minh City Stock
regulatory sustainability in Vietnam is gradually Exchange (HOSE) has joined the UN
requirements evolving, placing compliance pressure Sustainable Stock Exchanges Initiative
on companies. The government has and launched the Vietnam
issued regulations that mandates ESG Sustainability Index (VNSI) since 2017,
disclosures in annual reports (e.g., further motivating listed firms to
Circulars 155/2015/TT-BTC and enhance their ESG performance. The
96/2020/TT-BTC) and encouraging overall trend of tightening regulations
green stock markets. ESG has also (particularly in the US, EU, and ASEAN
been identified as a core pillar of the region) also indirectly pressures
national sustainable growth strategy Vietnamese companies to elevate their
(Decision No. 167/QĐ-TTg, 2022), ESG standards to stay competitive and
urging enterprises to restructure for integrated globally.
sustainability.

Competitive Strong ESG performance offers long- risks), thereby improving long-term
advantage term competitive advantages to financial outcomes. Leading in ESG
companies. Sustainable development also positions companies to seize
enhances brand image, differentiates opportunities from emerging trends like
business, and attracts customers who green finance and carbon credits, and
are socially and environmentally access high-end markets or customer
conscious. As some research suggests, segments with stringent standards. In
sustainability is increasingly becoming addition, robust ESG credentials help
a source of competitive edge in attract and retain top talent, as many
business. Moreover, companies that skilled workers seek to work for
emphasize ESG typically operate more organizations that demonstrate strong
efficiently and manage risks better social and environmental
(e.g., compliance risks, environmental responsibility.

In summary, listed companies in Vietnam have made significant progress in their ESG commitments and
practices. The level of commitment is high, with the majority of companies integrating sustainability into
their strategies, although implementation varies between groups. Around half have defined ESG strategies,
while the rest are still developing or just beginning. The implementation of ESG is driven by multiple factors,
most notably are investor pressure, customer demands, regulatory requirements, and competitive
advantage. These factors have led to a growing number of companies voluntarily publishing sustainability
reports and improving ESG transparency, contributing to a more sustainable Vietnamese stock market.
19 | Practicing ESG in Vietnam

Chapter

02 ESG Performance Analysis

 MCG Group | 20

Social Strengths, Environmental Weaknesses,

and Governance Gaps
The ESG performance analysis of ~500 an average level, needing further improvement.
Vietnamese companies reveals significant Chart 2: Comparison of median ESG scores of
disparities among the different aspects: the median companies (scale 1 - 5)
score for Environment (E) is only around 1.5–2.0 on 5
a 5-point scale (lowest), while Social (S) scores 4 3.5
range from 3.0–4.0 (highest), and Governance (G) is 3 2.5
at an average level of ~2.5. This indicates that 1.8
2
businesses are doing better in social aspects (e.g.,
1
occupational health & safety) but are still weak in
environmental aspects; the governance aspect is at 0
Môi trường (E) (E)
Environment Xã hội (S)
Social Quản trị (G)
Governance (G)

Environment (E)

Environmental performance is the lowest among the three pillars, with a median score of only around 1.5–2.0
points. Almost all (~495) surveyed companies performed poorly in environmental aspects, as evidenced by a
lack of specific information and plans regarding key environmental issues. The most prominent weaknesses
include:

Climate change risks 02

58% of companies do not mention climate
change-related risks and opportunities in
their reports. Advanced steps such as
01 Carbon emissions setting risk mitigation targets or conducting
A low emissions score (~1.5) due to a lack of climate scenario analyses remain rare, with
transparency: 61% of companies do not absence rates of 82% and 93%, respectively.
have any greenhouse gas (GHG) emission
reduction plans mentioned, and 21% have
vague policies, with no specific plans.
Water management 03
Water management score ~2.0. Although
nearly 40% of companies reported the

04 Waste and Materials

source and volume of water used in their
reports, 79% did not provide data on water
Waste Management score ~2.0, indicating recycling or reuse. The lack of clear
limited disclosure. 53% of companies do regulations may be one reason for the low
not disclose the total amount of materials disclosure rate.
used for production/packaging; 74% do not
provide information on the proportion of
materials/waste that are recycled.
21 | Practicing ESG in Vietnam

Chart 3: Percentage of companies with significant information/plans missing

Không đánh assessment

No governance giá quản trị theo chuẩn
standards 81%
Environment is the area with the most
Không có dữ
Noliệu
datatáionsửwater
dụngreuse
nước 79% serious information gaps (e.g. 61% do not

NoKhông có thông
information tin tỉ lệ táirate
on recycling chế 74% have a plan to reduce GHG emissions, 79%
do not report water reuse), whereas in
KhôngNo
cóGHG
kế hoạch giảmreduction
emission phát thải GHG
plan 61%
governance, up to 81% of companies do
Không có thông tin
No disclosure rủi ro khírisks
of climate hậu 58% not assess themselves against any
governance standards.
0% 50% 100%

Positive Note: Despite overall weakness, a small number of large enterprises scored highly (4–5) in the
environmental aspect, demonstrated by detailed reporting of emissions (Scope 1 & 2) or in-depth climate
scenario analyses based on international standards. This shows that improvement is possible - if companies
learn from leading performers. However, overall, the Environment pillar remains a clear weakness, requiring
companies to step up efforts in impact mitigation and improve transparency.

Social (S)

Social performance is the strongest aspect of ESG practices among Vietnamese companies, with a median
score of approximately 3.0–4.0 points. Companies generally pay more attention to health, safety and labor
management than to the environment. Specifically:

LABOR MANAGEMENT
(Median ~3.0 – Fair)

Most companies have skill development

HEALTH & LABOR
SAFETY programs and ensure employees receive basic
(Median ~4.0 – very high) wages. Notably, 52.32% report paying at least
a living wage, and 37.78% confirm salaries
Many companies have comprehensive
above the industry average, reflecting efforts
labor safety policies and demonstrate
to ensure employee welfare. Moreover, many
good implementation practices, comply
businesses actively support employee
with international standards, and
development - 339 companies (68.5%)
provide regular training for employees.
received full scores for this area due to
This reflects a strong commitment to
continuous training and learning programs.
protecting worker health.

Overall, social achievements ranged from fair to information on wages and working conditions
good, with Health & Labor Safety being the most (currently about 50% of businesses have not
prominent. This shows that businesses have done clearly disclosed this information). Disclosure of
well in ensuring the welfare and safety of specific data (e.g. salary comparisons to industry
employees. However, there is still room for averages, workplace accident statistics) would help
improvement in the labor sector – especially the improve labor management even further.
need for more transparency in detailed
 MCG Group | 22

Governance (G)

In terms of corporate governance, performance is at an average level with a median score of around 2.5. This
indicates that many companies are only meeting the basic governance requirements, while higher standards
have yet to be widely adopted. A few key points include:

Basic Governance Practices

Indicators such as the number of board meetings, orientation plans, etc. show a fairly even
distribution of scores. This implies that there are large differences between enterprises – some
implement basic governance practices well, while many others only achieve average or low levels.

Compliance with governance standards

This is a notable weakness. Up to 401 enterprises (81%) do not have any information on assessing
governance practices according to specific standards (for example, the Vietnam Corporate
Governance Framework 2019 or the ASEAN CG Scorecard). In other words, the majority of
enterprises (8/10) have not self-assessed or disclosed their compliance with good governance
practices. This may be because these standards are not currently mandatory and many companies
do not have enough resources or awareness to implement them.

Strengths & Improvements

Some pioneering enterprises have begun to apply good governance practices (e.g., having an
independent board, audit committee, periodic board evaluation, etc.). However, this rate is still low
(less than 20% have information on standard assessments). This shows that corporate governance
in Vietnam lacks a clear strong point like the Social aspect and requires further improvement in
terms of transparency and adherence to standards. Promoting the adoption of the 2019 Corporate
Governance Code and international standards could gradually enhance governance scores in the
future.

In summary, ESG practices among Vietnamese enterprises show significant disparity across the three
pillars. The Social aspect is the strongest (especially occupational safety), while Environment is the
weakest, with most companies lacking plans or full disclosures on emissions, climate, and resources.
Governance remains at an average level, with notable gaps in standard compliance, demanding focused
improvement. These findings underscore the need for companies to enhance transparency and invest
more in environmental and governance initiatives to improve ESG performance in the years ahead.
23 | Practicing ESG in Vietnam

Heatmap showing correlation between

ESG indicators

E-Packaging Materials & Waste

- S-Labor management
- E-Carbon emission

- Average ESG score

- S-Health & Safety
-E-Climate change

- E-Water stress

- G-Governance
E-Carbon emission - 1.00 0.64 0.59 0.48 0.43 0.23 0.34 0.81 1.0

E-Climate change - 0.64 1.00 0.41 0.34 0.35 0.20 0.36 0.73 0.9

E-Water stress - 0.59 0.41 1.00 0.60 0.39 0.27 0.24 0.73 0.8

E-Packaging Materials & Waste - 0.48 0.34 0.60 1.00 0.21 0.19 0.20 0.61 0.7

S-Health & Safety- 0.43 0.35 0.39 0.21 1.00 0.35 0.42 0.60 0.6

S-Labor Management- 0.23 0.20 0.27 0.19 0.35 1.00 0.24 0.48 0.5

G-Governance- 0.34 0.36 0.24 0.20 0.42 0.24 1.00 0.65 0.4

Average ESG score - 0.81 0.73 0.73 0.61 0.60 0.48 0.65 1.00 0.3

Analytic method
Measurement method: Pearson correlation r values:
coefficient (r), assessing the degree of linear
▪ r ≈ 1: Strong positive correlation
correlation between two ESG variables.
▪ r ≈ 0: No clear correlation
Sample size: Nearly 500 publicly listed companies ▪ r < 0: Negative correlation (not observed in this
on the Vietnamese stock exchange. data)
 MCG Group | 24

Analysis Results

Internal correlation among Environmental (E) indicators is relatively strong

Indicator pair Coefficient (r) Interpretation:

Carbon emission – Climate change 0.64 Effectively managing one environmental aspect
often leads to improvement in other factors. This
Carbon emission – Water stress 0.59
reflects a high level of integration among
Water stress – Packaging waste 0.60 environmental dimensions in ESG practices.

E indicators have the strongest correlation with the overall ESG score

Indicator pair Coefficient (r) Interpretation:

Carbon emissions 0.81 Three environmental aspects – carbon emissions,
Climate change 0.73 climate change, and water management – play a
decisive role in determining a company's overall
Water stress 0.73
ESG performance.

Social (S) and Governance (G) indicators show weaker correlations than Environmental (E) indicators

Indicator pair Coefficient (r)

Interpretation:
Health & Safety – Labor Management 0.35
Corporate governance (G) still plays a foundational
Labor Management – Governance 0.24 role in effective ESG operation, even though it is
not strongly linked to environmental factors.
Governance – Average ESG Score 0.65

Proposed Action Strategy

Enhance Management of Carbon Build GHG measurement systems, develop emission

Emissions, Climate Change, & Water reduction plans, apply water circularity models

Link emission, climate, and water-related actions into an Design integrated

integrated strategy environmental programs

Develop Social (S) and Improve sustainable HR policies, increase ESG governance
Governance (G) Factors transparency

Establish a dedicated ESG structure, data measurement Build a strong internal

systems, and independent ESG assurance organizational system

Analysis of data from nearly 500 Vietnamese enterprises shows:

Environmental (E) factors have the most significant influence on overall ESG performance.
▪ ESG success is not solely based on isolated initiatives but stems from internal capacity and cross-
sector integrated strategy.
▪ Enterprises should prioritize comprehensive improvements, from carbon management systems,
climate adaptation, and water resource control, to strengthening ESG governance and organizational
capability.
25 | Practicing ESG in Vietnam

CHAPTER

03 Key ESG topics

 MCG Group | 26

Net Zero Commitment: Processes, Standards,

and Implementation Assurance Mechanisms
Disclosure process for Net Zero Commitment
their current carbon footprint (including Scope 1,
2, and 3 emissions) based on standards such as the
GHG Protocol, they then set a target to reduce net
emissions to 0 by a specific year (often 2050 or
earlier). Next, they develop a detailed roadmap that
includes medium-term milestones (5–10 years) to
ensure continuous emission reductions rather than
deferring action until the target year. Net Zero
commitments are usually disclosed publicly
through sustainability reports or press releases.
Many companies also register with international
initiatives such as the United Nations' “Race to
Zero” or the Science Based Targets initiative
(SBTi) to enhance the credibility of their
Step 1 Step 2 Step 3 Step 4 commitments. For example, the SBTi requires
Calculate Set a Net Publicly companies to set both near-term (within 5–10
Develop
current Zero an action disclose years) and long-term (by ~2050) targets to ensure
emissions target roadmap commitment emission reduction pathways are aligned with
Leading companies typically begin by calculating climate science.

Criteria for ensuring a credible Net Zero Pathway

For a Net Zero commitment to be credible, sufficient – the SBTi initiative emphasizes that
companies must adhere to a set of strict principles companies need to reduce 90-95% of their
and criteria. First, the scope of the commitment emissions by 2050 to meet the 1.5°C target of the
should cover the entire value chain (including Paris Agreement. Only a very small portion (5-10%)
Scope 1, 2, and 3 emissions) rather than just direct of "residual" emissions that are difficult to eliminate
emissions. can be offset through carbon sequestration
measures (such as reforestation or carbon capture
5 – 10% technology). Commitments lacking specific
Residual emissions
allowed to be offset emission reduction targets or relying too heavily on
by carbon carbon credits are considered less credible. A
sequestration report from the NewClimate Institute shows that
many Net Zero commitments "in name only"
correspond to only a ~40% reduction in emissions,
Emissions must be as they lack detailed plans to fully eliminate
directly reduced emissions. Therefore, the key criteria are to have
before 2050
clear near-term targets, prioritize direct emissions
90 – 95% reductions over offsets, and commit to publicly
tracking and transparently reporting progress on an
Next, the roadmap must set an absolute annual basis.
emissions reduction target that is scientifically
27 | Practicing ESG in Vietnam

Monitoring the Net Zero roadmap is carried out reduction performance across companies.
through annual measurement and reporting of Additionally, some businesses engage independent
emissions and progress against targets. Companies third parties to verify/ audit their emissions and
often apply the GHG Protocol to consistently and reduction outcomes (in accordance with ISO
comparably track their emissions. Many firms 14064-3 standard for greenhouse gas verification),
integrate emissions indicators into their annual or to ensure accuracy and enhance credibility.
sustainability reports, following the Accountability is further reinforced by linking
recommendations of the TCFD, to ensure that climate targets to executive performance
climate risk information and emissions reduction evaluations or by making commitments to
progress are publicly disclosed to investors and the shareholders that the company will be held
general public. Transparent evaluation responsible if progress is not achieved. Thanks to
mechanisms include disclosing emissions data these robust and transparent monitoring
via platforms such as CDP - where over 18,700 mechanisms, stakeholders are able to track and
companies worldwide reported environmental data hold companies accountable for their Net Zero
in 2022, enabling investors to compare emissions journey and any delays or shortfalls along the way.

Common measurement and reporting standards for Net Zero

International standards help companies measure, report, and verify their Net Zero roadmaps in a transparent
and consistent manner. Below are some common frameworks and their respective roles:

Science Based SBTi provides a scientific framework set their Net Zero targets for SBTi
Targets initiative for companies to set emissions validation, if the targets meet the
(SBTi) reduction targets aligned with the criteria, they are certified as
1.5°C goal. According to SBTi, a “Science-Based,” which builds
credible Net Zero pathway requires credibility with investors and
companies cutting over 90% of partners. The framework provides
emissions by 2050, allowing only a companies with a clear roadmap and
small portion to be offset through specific guidance on required
carbon sequestration. SBTi also emissions reduction levels, helping to
requires short-term targets (5–15 avoid "vague, self-defined targets"
years) to ensure immediate action that are often viewed with skepticism
within this decade. Once companies and seen as potential greenwashing.

Greenhouse Gas This is the most widely used comparison and assessment more
Protocol international standard for transparent. Statistics show that 92%
(GHG Protocol) greenhouse gas accounting. The GHG of Fortune 500 companies have used
Protocol provides guidance for the GHG Protocol to report carbon
companies on how to categorize emissions (e.g., when responding to
emissions into Scopes 1, 2, and 3, CDP questionnaires). This
how to calculate each type of demonstrates that the GHG Protocol
emission, and how to report them has become the near-universal
consistently. Thanks to the GHG "common language" for carbon,
Protocol, companies around the enabling companies to ensure data
world can measure and track their accuracy and build stakeholder trust
emissions using the same units and when disclosing their Net Zero
methodologies, making progress roadmaps.
 MCG Group | 28

ISO 14064 is an international build a structured GHG management

ISO 14064
standard that guides the system, enhancing credibility with
quantification, reporting, and both domestic and international
verification of greenhouse gas stakeholders. When a company
emission. It consists of three parts: declares it has achieved carbon
ISO 14064-1 focuses on measuring neutrality in accordance with ISO
and reporting emissions, ISO 14064-2 14064, it implies that its emissions
covers emission reduction projects, data and offsetting measures have
and ISO 14064-3 sets requirements been independently verified - making
for independent verification. Adopting its Net Zero commitment more
ISO 14064 enables businesses to transparent and trustworthy.

Carbon Disclosure CDP is the world’s largest voluntary CDP, companies demonstrate
Project (CDP) disclosure system where companies transparency in their emissions
publicly report information on reduction pathways to investors and
climate, water, and forests. Each the public. CDP provides investors
year, companies respond to with comparable data to assess
standardized questionnaires. In climate performance, thereby
2022, over 18,700 companies with a applying constructive pressure on
combined market capitalization of businesses to deliver on their
approximately USD 60.8 trillion commitments. High CDP scores,
disclosed environmental data such as inclusion in the “A List,”
through CDP - the highest number signal leadership and credibility in
since CDP was established. Through Net Zero commitments.

Task Force on TCFD provides a framework for By the end of 2022, over 4,000
Climate-related companies to integrate climate risks organizations supported TCFD, and
Financial and opportunities into their financial many countries (the UK, New
Disclosures reporting, based on four pillars: Zealand, Japan, etc.) have either
(TCFD) Governance, Strategy, Risk mandated or are in the process of
Management, and Metrics and mandating TCFD reporting.
Targets. The companies are required Compliance with TCFD enhances
to disclose key climate metrics (such transparency with investors and
as emissions, emissions reduction supports the development of
targets, and progress) as well as a resilient, low-carbon business
scenario analysis of the transition to strategies.
a Net Zero economy.

Overall, these standards complement each other in helping companies plan and implement a feasible,
transparent Net Zero roadmap. For example, companies can use the GHG Protocol to measure emissions, set
targets according to SBTi, report results through CDP and TCFD, and verify data according to ISO 14064. This
combination ensures that Net Zero commitments are not just empty statements but are backed by reliable
data and a clear action plan.
29 | Practicing ESG in Vietnam

Learning from pioneers: What global companies

have done – and what it means for Vietnam?
Pioneering companies and their achievements

Many large companies worldwide have taken the lead in committing to Net Zero and have achieved
encouraging initial results. Below are some notable examples:

MICROSOFT (US, technology)

Commitment to becoming carbon- carbon fee, and using renewable
negative by 2030 and eliminating energy. The lesson is the strong
all carbon emissions from 1975 to commitment from leadership and
2050. The company is investing the integration of climate goals into
USD 1 billion in carbon removal long-term strategy.
technology, applying an internal

APPLE (US, consumer electronics)

Goal to achieve carbon neutrality clean energy and material

across the entire value chain by innovation. Apple demonstrates
2030. Currently, the company has the importance of supply chain
achieved carbon neutrality for its coordination and green
internal operations, reducing its technology.
carbon footprint by 40% through

ØRSTED (Denmark, energy)

The transition from coal and oil to prime example of how the fossil
wind power is expected to reduce fuel industry can successfully
CO₂ emissions in Scope 1 and 2 by transform through vision and
98% by 2025. This serves as a sustained investment.

AMAZON (US, retail and cloud services)

Co-founder of "The Climate projects. By 2022, 400 clean energy

Pledge" initiative, committed to Net projects have been implemented.
Zero by 2040. Investment in Leading an industry alliance
renewable energy, electric creates pressure for widespread
vehicles, and forest protection change.

UNILEVER (UK/Netherlands, consumer goods)

Commitment to Net Zero for all regenerative agriculture, product

products by 2039, with a 64% formulation improvements, and
reduction in production encouraging consumers to change
emissions. Investment in their behavior.
 MCG Group | 30

Common barriers and what we have learned

Reliance on future Transparency &

Indirect emissions Costs and
technologies & avoiding
(Scope 3) policies
carbon credits greenwashing

Difficult to control and Poses risks if Vague commitments Large investments.

accounts for a implementation fails. undermine credibility. national policies
significant proportion. The key lesson is to Businesses should remain inconsistent. It
The solution lies in prioritize early transparently disclose is important to
early collaboration absolute emissions their plans, report leverage government
with suppliers and reductions using follow international support, issue green
customers, and currently available standards (SBTi, TCFD) bonds, and advocate
participation in solutions. and undergo for clear carbon
industry alliance. independent audits. policies.

A feasible Net Zero commitment is one that is integrated into the business strategy, transparent,
continuously innovative, and involves effective collaboration. Pioneer companies have shown that Net
Zero is not only about protecting the climate but also a sustainable growth opportunity.
31 | Practicing ESG in Vietnam

Net Zero: From commitment to action in the

Vietnamese market
After the Vietnamese Government announced its out of 495), it also proves the sector’s proactive
goal of achieving net-zero emissions by 2050 at approach to greenhouse gas reduction.
COP26, many major domestic enterprises
Data analysis revealed that a significant portion of
responded actively. As of mid-2023, more than 50
companies have yet to make strong commitments
Vietnamese companies had publicly committed to
toward Net Zero emissions goal.
pursuing Net Zero, including leading corporations
such as Vingroup, Hoa Phat, FPT, Masan, etc. Specifically:

▪ A large majority (83.6%, equivalent to 414

An evaluation of corporate commitments to companies): Had not set any Net Zero targets.
achieving net-zero, based on a survey of 495
▪ A notable share (9.3%, equivalent to 46
companies, yielded the following results:
companies): Had made general emission
Chart 4: Number of companies with ambitious Net reduction statements but lacked concrete
Zero targets implementation plans.

Financials 9 ▪ A small portion (2.2%, equivalent to 11

Industrials 6 companies): Had set targets beyond 2050. The
Consumer Staples 3 distant timeline, combined with vague planning,
Consumer Discretionary 2 significantly reduces the credibility and
Basic Materials 1 feasibility of these commitments.
Utilities 1
Most of these companies have set the Net Zero
Information Technology 1
target for 2050, in line with the national goal, with
Consumer Services 1
some expecting to achieve it earlier if conditions
24 companies (4.85%) had set relatively ambitious permit. When announcing their commitment, many
and specific net-zero targets (e.g., reaching before of them have outlined specific solutions such as
2050). However, when factoring in the requirement investing in renewable energy, improving
of a clear roadmap, this number dropped to just 11 production technology to save fuel, switching to
companies (2.2%). low-carbon materials, recycling and reusing

Chart 5: Number of companies with clear Net Zero materials.

targets and roadmaps

Financials 5
Consumer Staples 3
Consumer Discretionary 1
Consumer Services 1
Industrials 1

The financial sector has demonstrated clear

commitments and detailed roadmaps in their
reports, accounting for 5 out of the total 11
companies. While this may partly reflect the large
number of financial companies in the sample (97
 MCG Group | 32

Destination 2050: Companies already on the path

In response to the national commitment to achieve Many companies choose the 2050 target to be in
net emissions of "0" by 2050, many companies have line with Vietnam's Nationally Determined
set their own Net Zero targets with specific Contributions. Masan has set a goal to reduce
roadmaps. Overall, 2050 is a common target, but Scope 1 & 2 emissions by 15% by 2030 and
some companies aim for earlier targets for their achieve net-zero emissions by 2050, in line with
internal operations. For example, VPBank aims to the national commitment. Gia Lai Electricity (GEC)
achieve net emissions of "0" by 2027 for its is also aiming for Net Zero across all three scopes
banking operations and by 2050 for its credit by 2050 by issuing its own REC and carbon credits
portfolio (emissions from borrowers). This is an from its renewable energy power plants. This
ambitious early target for internal operations implies that GEC will leverage its clean energy
(2027), demonstrating the bank's strong production to offset emissions, contributing to the
commitment. national Net Zero strategy.

Some retail companies and commercial banks are

also embracing this trend. Thegioididong (MWG)
has outlined its goals for 2024–2030 with a series of
targets related to emission reductions and
environmental protection, such as reducing Scope
1 & 2 emissions by at least 10% per store, cutting
plastic bag use by 50% per order, implementing IoT
to control energy use at ≥70% of supermarkets, and
installing rooftop solar panels at 600 stores starting
from 2024. Although MWG has not specified a
In the insurance industry, Bao Viet Group (BVH) concrete Net Zero target, these short-term goals
has developed a detailed Net Zero roadmap. Bao will significantly contribute to reducing the carbon
Viet is committed to achieving Net Zero by 2050 and footprint, moving towards neutrality by 2050 as
has set intermediate emission reduction committed by the government. Similarly, MSB
milestones for each stage: a 20% reduction by 2025 (Maritime Bank) affirms that it is reducing
(compared to the 2018 baseline), a 50% reduction emissions from daily operations and aims for Net
by 2030, a 70% reduction by 2040, and reaching Zero by 2050, in alignment with Vietnam’s
Net Zero by 2050. This roadmap focuses on commitment. The bank has started with energy-
reducing emissions from headquarters, vehicles, saving measures in operations to support its long-
and energy consumption - the main sources in the term goal.
insurance financial sector. Setting quantitative
targets over the decades demonstrates that Bao
Viet has planned clear steps rather than just making
a general statement.
33 | Practicing ESG in Vietnam

Some businesses choose to join international Century Synthetic Fiber Corporation (STK) has
initiatives to realize their Net Zero goals. Vinamilk - set a target of achieving net-zero emissions by
the leading dairy company - is a pioneer with its 2050 and has already begun a science-based
“Vinamilk Pathways to Dairy Net Zero 2050” roadmap: In 2023, STK’s Trang Bang factory, in
program. Vinamilk participates in the global dairy collaboration with partner Decathlon, registered
industry’s Net Zero initiative (led by IDF and DSF), with SBTi, aiming to reduce emissions by 2027
demonstrating its leadership position. The based on 2022 levels (Scope 1 emissions from 150
company has achieved specific milestones on its tons CO₂e down to 106 tons; Scope 2 emissions
journey: 100% of its factories and farms have from 46,612 down to 29,378 tons CO₂e).
completed GHG inventories according to ISO Participation in the Science Based Targets shows
14064, and have implemented environmental and that STK’s goals are grounded in scientific
energy management systems compliant with ISO principles and verified by a third party.
14001 and ISO 50001. In 2023, Vinamilk’s Nghe An
Dairy Factory and Nghe An Dairy Farm became
the first two units to be certified carbon neutral
(PAS 2060), with a total of 17,560 tons of CO₂
offset. Vinamilk has also set medium-term targets:
a 15% emission reduction by 2027, a 55%
reduction by 2035, gradually progressing toward
Net Zero by 2050. These efforts have been
recognized by third parties (Vinamilk participates
in the CDP initiative for climate transparency) and
honored with international awards (Human Act An Cuong (ACG) – a wood manufacturing company
Prize 2023). This is a prime example of translating a – has also committed to achieving Net Zero by
Net Zero commitment into concrete actions and 2050, in 2023, the company established an ESG
verifiable certifications. Committee to oversee its sustainable development
strategy and green transition roadmap. However,
ACG’s report acknowledges the need for further
clarification of its specific emission reduction
roadmap, including quantitative targets for each
phase and the extent of third-party data
verification. This indicates that while the goal has
In addition, other manufacturing companies have been set, ACG still needs to elaborate its plan and
also announced notable Net Zero commitments. improve transparency moving forward.

Overall, the 2050 Net Zero target has become a common benchmark that many Vietnamese businesses are
striving toward, albeit with varying levels of detail. A key highlight is that some companies have developed
clear roadmaps and intermediate targets (such as Bao Viet, Vinamilk) and have joined international initiatives
to verify their progress (Vinamilk, STK). However, a limitation remains: some businesses have only made
general statements or have yet to specify a concrete Net Zero timeline (e.g., Vietjet has set a target to reduce
emissions intensity per seat by 15%, but has not clarified when it aims to achieve Net Zero). Additionally, few
companies have addressed independent verification of their Net Zero commitments; apart from specific
cases (such as participation in the SBTi or PAS 2060 certification), most Net Zero targets are based on
internal pledges and alignment with national goals. Therefore, the next important step is to concretize and
monitor the progress of these commitments to ensure they are achievable.
 MCG Group | 34

Pioneering sectors in the Net Zero journey in Vietnam

In Vietnam, several key industries are taking the lead in efforts to reduce emissions & move toward Net Zero.

Energy and utilities Vietnam’s power sector is Rooftop solar and offshore wind
undergoing a significant transition projects have made Vietnam one of
under the coal phase-out the most dynamic renewable energy
commitments. Vietnam Electricity markets in Southeast Asia.
(EVN) has pledged to stop Meanwhile, oil and gas companies
developing new coal-fired power (PVN, PV Gas…) are exploring green
plants after 2030 and is increasing hydrogen, ammonia to maintain their
investment in wind and solar energy. role in a Net Zero economy.

Despite being high-emission sectors, alternative fuels like waste-to- Industrial manufacturing
some companies are leading green energy. This sector is adopting low- (steel, ciment, chemicals):
efforts. Hoa Phat participates in carbon technologies and preparing
regional initiatives to reduce for carbon border taxes such as the
emissions in steel production. Ha EU’s CBAM. Đưa ảnh liên quan tới
sản xuất (của VN)
Tien Cement and INSEE are exploring

Banking and finance Major Vietnamese banks such as sector supports Net Zero goals by
Vietcombank and BIDV are funding low-emission projects and
implementing green credit policies, reducing its own footprint through
Đưa ảnh liên quan tới limiting coal financing, and aligning digitalization and energy-efficient
tài chính (của VN) with ESG and TCFD standards for operations.
climate risk reporting. The financial

Major agricultural firms (PAN Group, a strategic asset for Vietnam’s Net Agriculture and
Nafoods…) are adopting regenerative Zero goals. Many companies, forestry
agriculture models to reduce including Vinamilk, SunGroup,
emissions while enhancing carbon Novaland, and ABBank, are investing
sequestration through soil and forest in tree planting and carbon credit Đưa ảnh liên quan tới
protection. The forestry sector (tree projects to offset emissions and tài chính (của VN)
planting, timber production) - thanks build a green corporate image.
to its carbon absorption capacity - is

In addition, the transportation sector is also beginning to transform (VinFast is developing electric vehicles,
Vietnam Airlines is researching the use of sustainable aviation fuel SAF). Overall, industries with more
exposure to international markets (exports or foreign partners) are taking the lead, due to pressure from
partners requiring products and services with a low carbon footprint.
35 | Practicing ESG in Vietnam

Accelerating Net Zero: Existing barriers and solutions

Implementing the Net Zero roadmap in Vietnam is promising, but it also faces several specific challenges:

Awareness and governance capacity

Many businesses, particularly SMEs, still lack a and skilled personnel. This gap presents
clear understanding of Net Zero and how to develop opportunities for consulting and training providers,
actionable roadmaps. Key challenges include as government and industry associations
limited expertise, data for emissions measurement, increasingly offer workshops to raise awareness.

Investment costs and technology

Businesses are concerned about high costs and to access international green financing and funding
long payback periods when investing in clean from foreign banks. Some major FDI partners are
technologies. Meanwhile, domestic low-carbon also supporting Vietnamese suppliers in upgrading
technology remains limited, heavily reliant on to greener production, creating internal momentum
imports. However, this also opens up opportunities for improvement within the supply chain.

Policy framework and domestic carbon market

Vietnam is developing a carbon credit trading Nevertheless, early movers can gain a strategic
platform and finalizing legal frameworks for advantage by staying ahead of policy changes,
emissions reduction. However, in the absence of a increasing opportunities to sell carbon credits, and
carbon tax or mandatory regulations, many avoiding being caught off guard by new export
businesses lack financial incentives to invest. requirements.

Collaboration and supply chains

With small scale, Vietnamese businesses still have Bank to conduct greenhouse gas inventories and
limited influence in global supply chains. However, develop Net Zero strategies. Participating in
many have started receiving support from networks like the Net Zero Business Club (VBCSD)
international organizations such as USAID, World helps facilitate knowledge sharing and more
effective policy advocacy.

In summary, the Vietnamese business community is facing a major opportunity to accelerate green
transformation following the nation’s Net Zero 2050 commitment. Several industries and companies have
already taken early action, demonstrating agility in responding to global trends. Although there are still
several barriers in terms of awareness, resources, and technology, these challenges can be gradually
overcome through strategic investment and collaboration. With strong determination and adequate
support, Vietnamese businesses can fully turn the Net Zero challenge into a driver of innovation,
enhanced competitiveness, and long-term sustainable development.
MCG Group | 36
37 | Practicing ESG in Vietnam

Emission disclosure: A new milestone in ESG

practices in Vietnam
Many Vietnamese businesses have started to disclose their detailed greenhouse gas emissions, including
scopes 1, 2, and even scope 3, along with clear calculation methods.

Lien Viet Bank In 2023, LPBank reported 32,976 and explained metric changes.
tons of CO₂ emissions, a 7% Importantly, it follows the GHG
Total emissions reduction from 2022, mainly due to Protocol and uses official emission
2023 compared
to 2022
7% decreased fossil fuel-based travel. factors, ensuring methodological
The bank also calculated per capita transparency.
emissions (3.1 tons CO₂/employee)

In 2023, Masan disclosed Scope 1 & decrease). Masan also reported a Masan Group
2 emissions for its subsidiaries: 20% increase in biogenic emissions,
Total emissions 2023
Masan High-Tech Materials (MHT) attributed to higher biomass usage.
compared to 2022
emitted 171,704 tons of CO₂e in This level of detail in reporting
2023 (a 9.7% decrease), and Masan provides greater transparency and 9.7% MHT

Consumer Holdings (MCH) emitted helps clarify the factors behind

376,029 tons of CO₂e (a 21.8% emission fluctuations.
21.8% MCH

Gia Lai Electricity Notably, some companies provide disclosure), 5,880.8 tons in Scope 2
Company full reports covering all three scopes (fully offset by RECs), and 395.9 tons
Total emissions have of emissions. Gia Lai Electricity in Scope 3. Furthermore, GEC
significantly decreased Company (GEC) follows the GHG recorded 67.4 tons of CO₂ absorbed
Protocol and IPCC, cutting total (possibly from green plants), which
2022: 4.621 TONS emissions from 4,621 tons (2022) to further reduced actual emissions.
699.1 tons (2023) by using The full disclosure demonstrates
2023: 699,1 TONS renewable energy certificates high transparency and the
(RECs). In 2023, GEC reported 370.5 company’s comprehensive effort in
tons in Scope 1 (first-time managing emissions.

Maritime Bank
The banking sector has also made structure: electricity consumption
progress in greenhouse gas (GHG) accounts for about 82%, gasoline Total emissions (internal)
inventory. MSB (Maritime Bank) has for company vehicles approximately 2023 compared to 2022

calculated its emissions for 2023 for 8.5%, with the remaining 9-10%
the first time (focusing solely on coming from other sources such as
26%
internal operations, excluding the business travel, employee
loan portfolio), reporting 10,892 tons commuting, waste, wastewater (all
of CO₂, a reduction of approximately within Scope 3). This breakdown
26% compared to 2022 (14,787 helps identify key areas for
tons). MSB has also provided emissions reduction (with a primary
transparency regarding the emission focus on electricity).
 MCG Group | 38

Other companies also provide quantitative data along with context.

Phu Nhuan Jewelry PNJ (Phu Nhuan Jewelry Company) intensity per 1,000 products, which
Company reported a reduction of 827 tons of decreased by approximately 3.4%
Total emissions 2023 CO₂ (from 3,832 tons in 2022 to (from 1.01 to 0.98 tons of CO₂),
compared to 2022 3,010 tons in 2023) thanks to reflecting the effectiveness of the
emission reduction initiatives. The implemented measures.
827 TONS company also tracked emissions

Vietjet Air - a company with CORSIA mechanism and engages an Vietjet Air
significant emissions from flight independent third party (VERIFAVIA)
Emissions data was
operations - also publicly disclosed to verify all annual emission data.
verified by a third
its emission figures. In 2023, the This ensures that the reported party
airline emitted 1,657,239 tons of CO₂ emissions are third-party verified,
from international flights. The airline enhancing reliability and
complies with the international transparency for investors.

However, not all companies provide complete Scope 3 information or conduct independent verification; this
remains an area where businesses need to improve in order to meet international reporting standards.
39 | Practicing ESG in Vietnam

Greenhouse gas emissions disclosure:

Legal regulations and practices in Vietnam
Current legal regulations on greenhouse gas emissions disclosure

Law on Environmental Protection 2020 Decision 01/2022/QD-TTg (18/01/2022):

Effective from January 1st 2022, this law for the first The list of 6 sectors required to inventory GHG
1 2 3 4
time mandates greenhouse gas (GHG) inventory includes energy, transportation, construction,
and reporting for major emitters. Regulated industrial processes, agriculture, forestry and land
facilities must conduct a GHG inventory every two use, and waste.
years and submit it to the Ministry of Natural
The initial list issued with Decision 01/2022
Resources and Environment. They are also required
includes ~1,912 facilities from the above sectors
to develop annual emission reduction plans and
required to conduct GHG inventory (this list is
report progress through a measurement, reporting,
updated every 2 years; for example, in 2024, it was
and verification (MRV) system.
updated to 2,166 facilities required to inventory).
Decree 06/2022/NĐ-CP (07/01/2022):
Circular 96/2020/TT-BTC (Ministry of Finance):
This decree provides detailed regulations on GHG
Guiding the disclosure of information on the
emissions reduction and ozone layer protection,
securities market, effective from 01/01/2021, this
including guidance on GHG inventory. The decree
circular adds requirements for GHG emissions
06/2022 specifies the emission thresholds to
information in the annual reports of public
determine which entities are required to conduct
companies. According to appendix IV of Circular 96,
inventories: facilities with emissions from 3,000
listed companies must disclose total GHG
tons of CO₂ equivalent per year or more, or those
emissions and related measures or solutions for
falling into the following categories:
emission reduction in their annual reports. This
(a) Thermal power plants and industrial regulation aims to integrate environmental impact
production facilities with annual energy: information (such as direct and indirect GHG
≥ 1,000 tons of oil equivalent (TOE); emissions) into annual reports, thereby increasing
(b) Freight transport enterprises: ≥ 1,000 environmental transparency on the securities
TOE/year; market.
(c) Commercial buildings consuming ≥ 1,000
Beside the aforementioned regulations, several
TOE/year;
ministries have also issued circulars providing
(d) Solid waste treatment facilities with a
technical guidelines on measuring, reporting, and
capacity of ≥ 65,000 tons/year.
verifying GHG emission reductions for their
The decree also outlines a compliance roadmap: respective sectors under Decree 06/2022.
from 2023, regulated facilities must provide annual
E.g.: Ministry of Industry and Trade issued Circular
activity data for inventory purposes; from 2024,
38/2023/TT-BCT on technical guidelines for
they must conduct GHG inventories every 2 years
measuring, reporting, and verifying GHG emission
and submit facility-level inventory reports by 31/03
reductions in the industrial and trade sector.
(starting in 2025) for verification; final inventory
results must be submitted to Ministry of Natural These guidelines help businesses carry out GHG
Resources and Environment by 01/12 of the inventories and reports in accordance with the
reporting year (starting in 2025). correct methods.
 MCG Group | 40

How do Vietnamese businesses disclose GHG emissions in practice?

The rate of companies Pioneering

reporting is still low companies
Common scope and
Only a small content of disclosure Primarily, large
proportion (about 10- enterprises, high-
15%) of companies Most companies focus emission industries,
actually report their primarily on direct and firms with
GHG emissions data. emissions (Scope 1) and international
For example, in 2022, indirect emissions from obligations are leading
80 listed companies energy consumption in GHG inventories
disclosed information (Scope 2). The content and disclosures.
on their total direct usually includes the total Notably, sector like
and indirect amount of CO₂ equivalent the steel, cement,
emissions (Scope 1 emissions for the period and thermal power
and 2) in their annual and some related metrics account for much of
reports, a significant (e.g., emissions intensity the ~10% of firms
increase compared to per unit of product, if prepared for reporting,
37 companies in 2021. available). In addition to driven by export
Despite the the data, many companies demands and
improvement from report on the measures regulatory pressure.
before, this number they have taken to Additionally, some FDI
still represents only a manage and reduce enterprises or those in
small fraction of the emissions during the year, global supply chains
hundreds of listed such as improving energy voluntarily measure
companies in the efficiency, using renewable emissions to meet
market. Many other energy, and planting trees, global requirements.
companies have not etc. In 2022, 120 However, the majority
included specific companies reported of SMEs in Vietnam
emissions data in their information on emission have not disclosed
reports, indicating that reduction solutions their emissions
compliance with (almost double the 64 unless mandated, due
reporting companies in 2021). While to limitations in
requirements is still mentioning solutions is resources and
uneven. quite common, only a few awareness.
companies have
quantified the specific
reduction in emissions
due to these solutions.
41 | Practicing ESG in Vietnam

Compliance, challenges, and the gap between legal requirements and actual practices
Current compliance level: Compliance with 2,166 designated facilities. According to the
regulations on greenhouse gas (GHG) inventory and Ministry of Natural Resources and Environment,
disclosure in Vietnam remains low compared to only around 10% of enterprises are adequately
expectations. Although the first mandatory prepared to submit reports on time. Even among
reporting deadline is March 2025, by mid-2024, only the reports that have been completed, most have
just over 100 enterprises had conducted inventories not undergone independent verification, raising
in accordance with Decree 06/2022, out of a total of concerns about data reliability.

Challenges for enterprises: There are numerous barriers that make it difficult for enterprises to fully
comply with GHG emission regulations:
Awareness and technical capacity

Financial
Awareness and resources and
As a new and complex field, many enterprises face
technical business challenges in understanding technical standards, lack
capacity priorities
skilled personnel, and have no prior experience in
emissions calculation.

Financial resources and business priorities

Guidance and
data Many enterprises, especially SMEs, prioritize business
infrastructure continuity over GHG inventories due to high costs of
consultants, tools, and emissions management systems.
In addition, unclear enforcement mechanisms reduce
the urgency to comply.
Guidance and data infrastructure

Although regulations are in place, detailed guidance and supporting tools are still being finalized. Many
technical circulars were only issued at the end of 2023, making it difficult for enterprises to develop suitable
data systems within a short timeframe.

Gap between legal requirements and actual compliance, particularly in industries such as steel,
practices: Vietnam aims to manage 85% of cement, aluminum, and fertilizers. In the near
emissions by 2030, but currently controls only future, improvement is expected as regulatory
about 30%. Many enterprises only provide bodies finalize guidance frameworks, increase
information in a formal manner, lacking specific inspections, and large enterprises leading the way
data. The gap between legal requirements and will create a ripple effect. To achieve the targets,
actual practices remains significant. challenges related to awareness, finance, and
technical capacity must continue to be addressed,
However, pressure from international regulations,
and the gap between regulations and actual GHG
such as the EU's CBAM (which comes into effect in
inventory implementation needs to be narrowed.
2026), is pushing enterprises to accelerate
 MCG Group | 42
MCG Group | 42

The Journey of "Greening" the Vietnam’s Steel Industry:

From Net Zero Commitment to Tangible Benefits
Amid the global shift to sustainability, Hoa Phat Backing its pledge with concrete actions, the
Group - the largest steel producer in Southeast Asia company is making strong strides in exports and the
- has committed to net-zero emissions by 2050. international green finance market.

Green transformation through concrete actions

Hoa Phat has significantly invested in a closed- emissions per ton of steel. Initiatives such as
loop, circular steel production system, using planting trees and replacing trucks with conveyor
advanced technologies on par with G7 standards. belts further green the production value chain.
At its Dung Quat Integrated Steel Complex, a waste
In particular, in 2023, Hoa Phat was one of the first
heat power plant generates over 1.96 billion kWh
enterprises in Vietnam's steel industry to complete
annually, meeting 90% of local electricity needs -
the greenhouse gas inventory report according to
an impressive regional benchmark.
ISO 14064-1:2018, while also publishing the
Technologies like dry coke quenching (CDQ), flue carbon footprint for each steel product in
gas turbines (BPRT), and continuous casting- accordance with ISO 14067:2018 – a pioneering
rolling optimize thermal energy use and reduce CO₂ strategic move in the era of ESG transparency.

Benefits from the ESG strategy

Serious investment in ESG has not only brought Hoa Access to cheaper capital from banks and green
Phat international recognition but also tangible investment funds: ESG projects help Hoa Phat
financial and market benefits. access loans at favorable rates, paving the way for
long-term sustainable growth.
Export advantages to the EU: With transparent
emissions reporting and strong environmental Enhancing corporate image and credibility: Hoa
governance, Hoa Phat is well-positioned to meet Phat’s green, modern, and responsible image has
the EU’s Carbon Border Adjustment Mechanism earned investor trust and attracted global partners
(CBAM) requirements - crucial for sustaining its with strict supply chain standards, such as
steel exports to Europe as carbon taxes take effect construction, technology, and automotive sectors.
in 2026.

A message to the Vietnamese business community

The steel industry’s green transition shows that
sustainability is not a cost, but an investment for the
future. Hoa Phat has proven that ESG helps navigate
market and policy risks, while building competitive
advantage and brand value.

With a Net Zero 2050 vision, the company aims to

lead and inspire Vietnam’s business community
toward a green, circular, and sustainable economy,
where profit aligns with environmental responsibility.
43 | Practicing ESG in Vietnam

Reducing emissions through action: When

Vietnamese enterprises truly step in
To realize emission reduction targets, enterprises have implemented a variety of technical and innovative
management measures - from energy conservation, investment in new technologies, and transitioning to
renewable energy, to circular economy models. Below are some of the exemplary initiatives and the results
achieved by companies:

Enterprises Emission reduction initiatives Achieved results

Vietjet Air Applying SFCO2 fuel Saving ~3,214 tons of fuel in 2023
management and optimization (reducing fuel consumption, which
system for the fleet significantly reduces CO₂ emissions)

Century Synthetic Fiber Installing 7.4 MWp of rooftop Reducing 25,262 tons of CO₂ (cumulative
(STK) solar power at the factories by the end of 2023); expected to reduce
an additional ~3.18 million tons of CO₂
over the project's lifecycle

Maritime Bank (MSB) Upgrading the refrigeration Reducing electricity consumption by

system, replacing with LED 15.5% in 2023 compared to 2022
lights; organizing internal (contributing to indirect emission
competitions to save reductions from electricity)
electricity

Vinamilk Fuel conversion (replacing Significant reduction in emissions from

FO/DO oil with CNG; boilers and transportation. In particular,
increasing the use of biomass, emission intensity decreased by 86.2%
biogas); optimizing logistics (compared to previous levels)

Mobile World Investment Implementing IoT to monitor Significant electricity savings, reducing
Corporation (MWG) electricity usage, installing total electricity consumption by 10.7% in
solar panels at retail stores 2023; average emissions per store
decreased by ~44% from 2019 to 2023
 MCG Group | 44

These initiatives demonstrate the diversity in the approaches of Vietnamese enterprises:

Energy conservation
through equipment and management systems, using IoT to monitor electricity
improvements (replacing fluorescent consumption to prevent waste),
lights with LEDs, optimizing refrigeration immediate cost savings and indirect
emissions reductions are achieved.
Transition to renewable energy
such as rooftop solar power at factories, companies have made significant
headquarters, or retail stores, which not investments in solar energy: Century
only provide a proactive green energy Fiber has 7.4 MWp at two factories,
source but also reduce tens of Vinamilk optimizes its solar power
thousands of tons of CO₂. Many system at its farm, MWG aims for
hundreds of stores to use solar power.

Using clean fuels and new technologies

Vinamilk has converted its boilers to emissions. Vietjet, in addition to testing
compressed natural gas (CNG), using SAF, also applies SFCO2 technology to
biomass and biogas instead of coal, analyze flight data and optimize fuel
which significantly reduces emissions. consumption. As a result, the airline
Masan Consumer has also increased its saved over 3.2 million kg of fuel
use of biomass to reduce dependence on (equivalent to ~4.7 million USD) in 2023.
the grid, despite the additional biological This is a clear demonstration of the dual
benefits of green technology.

Circular economy and recycling initiatives

Many companies are reusing waste and footprint - each ton of recycled chips
by-products to reduce emissions and emits only ~0.5 tons of CO₂e instead of
save resources. Vinamilk processes cow 2.36 tons. PNJ maximizes the reuse of
manure using biogas digesters, captures materials and waste in production. An
methane gas for fuel, and also composts Cường prioritizes sustainable wood
using Japanese technology to reduce materials and invests in energy-efficient
nitrous oxide emissions. Century Fiber production lines. The trend of “maximize
uses recycled plastic instead of virgin reuse, minimize waste” is spreading
plastic, significantly reducing its carbon across industries.

Raising awareness and internal governance

Many companies have established ESG contest for energy-saving ideas, while
departments to oversee sustainability MWG integrated environmental criteria
efforts (such as ACG). They organize into its corporate culture. These “soft”
training, internal competitions to changes help sustain the long-term
encourage employees to save energy and effectiveness of technical initiatives.
reduce waste. MSB held an internal
45 | Practicing ESG in Vietnam

The environment is more than just carbon:

Water, waste, and resource management
In addition to reducing greenhouse gas emissions, businesses are also focusing on managing natural
resources (such as water and energy), handling waste, and using sustainable materials to minimize their
overall environmental impact.

Water management: is a growing focus, with many companies investing in

water-saving and reuse systems, especially in water-intensive sectors like
food and beverages. Vinamilk stands out with detailed disclosures on water
2,51%
water is reused in
sources (surface water, groundwater, rainwater) and conservation
circular production
measures. At its factories, Vinamilk operates a wastewater recycling
system, where treated water is reused for irrigation and barn cleaning.

85%
The reverse wash water Cooling water for milk filling
treated livestock
recovery system at the Tiên machines is collected, chilled,
wastewater is reused for
Sơn factory helps save and reused, which saves
crop irrigation

48.180 m³ water/year 9.945 m³ water/year This reflects a near-

Thanks to these initiatives, although the total water closed-loop water

consumption of Vinamilk increased in 2023 (due to expanding model at the farms

scale and the need to cool more cattle due to climate change), (water is used

water usage efficiency improved: m³ water/ton of product efficiently, collected,

decreased compared to 2022. treated, and reused)

Although Vinamilk provides many figures for the initiatives, the report does not include a summary table of
total water usage from all sources over the years, making it difficult to assess long-term trends.

In the retail sector, MWG also achieved results in water savings: in 2023, the company reduced water
consumption by 146,828 m³ (equivalent to a 12.7% decrease) compared to 2022, thanks to optimizing
operations at its store system. Clearly, efficient water management not only protects resources but also helps
businesses adapt to the risks of water scarcity due to climate change.
 MCG Group | 46

Waste and resource management: Businesses Sustainable materials: Using environmentally

are increasingly paying attention to waste sorting, friendly raw materials and designing products to
recycling, and the use of sustainable materials in conserve resources is a growing trend among
production - operations. 100% of waste at Vinamilk businesses.
is sorted and properly treated. The company aims to
Vinamilk states:
minimize waste generation and maximize reuse,
especially by recycling livestock waste into organic
fertilizer - a prime example of “turning waste into 100% paper 100% cardboard
resources.” packaging boxes
from certified produced using
waste at Vinamilk is sorted to
100% properly treated
sustainable
wood
environmentally friendly
technology.

95% carton 100% STORES

BOXES use recycled or reusable
plastic products
reused multiple times

In the food sector, many companies are investing in instead of single-use

wastewater treatment technologies that meet

standards and allow reuse, helping to reduce
Improve packaging design to reduce plastic use
environmental impact. Bach Hoa Xanh (MWG) is
piloting organic waste treatment at its stores, with 40% label size &
plans to expand to 200 locations in 2024 to cut
50% shrink film thickness
down on landfill waste. For electronic and
hazardous waste like batteries, MWG partners with Helps reduce 29.500 kg plastic/year
specialized firms for proper collection and
treatment.
These figures demonstrate the effectiveness of
These actions show rising business awareness of sustainable design - both reducing plastic waste
end-to-end waste management. and lowering material costs.

In summary, alongside the goal of reducing carbon emissions, many Vietnamese businesses are making
steady progress in environmental protection as a whole. Activities such as water conservation, recycling,
waste management, using sustainable materials, and improving product design all aim to minimize
impacts on the ecosystem.

A highlight is the increasing integration of environmental initiatives into daily operations (such as water
recycling, waste sorting, and using renewable energy), as well as the adoption of sustainable management
systems like ISO 14001 and 50001. Leadership plays a crucial role: pioneering companies like Vinamilk,
Bao Viet, and An Cuong have incorporated environmental goals into their strategies and corporate
cultures.

Although there are still limitations regarding data transparency and uneven implementation across
industries, the green development trend is clearly spreading. More and more Vietnamese companies are
transitioning toward sustainability, making a positive contribution to the country's climate change
response goals.
47 | Practicing ESG in Vietnam

Investment in people: Internal Training initiatives

Notable internal training initiatives
The survey revealed that 68.5% have skill development programs available to all departments and staff levels,
only 13.3% focus their training on management levels, and 17.5% do not have any training programs at all. The
2023 Annual Reports and Sustainability Reports recorded numerous notable internal training initiatives from
large enterprises, reflecting a strong commitment to investing in human capital.

Vinamilk considers training one of its training formats (internal, external,

top priorities to enhance the overall online, in-person) and is willing to
584 Training courses competencies of its employees. The make significant investments -
300.000 training hours company applies a wide range of viewing training as “the key to
28.000 Participations sustainable success.”

Vietcombank organized 419 training banking. On average, each

courses during the year (increased Vietcombank employee received 41
419 Training courses ~10% compared to 2022), with over training hours/year, demonstrating
140.000 Participations 140,000 total participations. More efforts to enhance human resource
41 hours/person/year than 50% of the content focused on quality in the financial and banking
leadership, technology, and retail sector.

FPT set a record in internal training training hours/year. This is part of

with 851,874 employee course the strategy to build a high-tech
851.874 Participations participations, totaling 5.6 million engineering workforce that
5.6 TRIỆU training hours training hours in the year. On continuously updates its skills to
127 hours/person/year average, each FPT employee meet the evolving demands of the IT
19 courses/person/year
completed 19 courses and 127 industry.

Training activities are given special positions. As a result, employees are

attention, with leaders at all levels equipped with the necessary
542 Training courses
actively participating and setting an competencies for their current roles
167.775 training hours
example. PNJ has established a and are prepared to advance to
14.100 Participations
transparent training policy, equal higher positions when opportunities
learning opportunities for all arise.

This airline expanded its online hours for technical staff. Vietjet
training efforts with 2,213 e-learning established the Vietjet Aviation
2.213 e-learning courses courses in 2023, attracting 97,453 Academy - one of the largest aviation
97.453 Participations participations. The total number of training centers in Vietnam and the
40.000 training hours internal training hours reached region - to provide formal training for
approximately 40,000, including pilots, engineers, and technicians in
8,727 hours for pilot training, 21,025 accordance with international
hours for cabin crew, and 9,948 standards.
 MCG Group | 48

In general, large enterprises in Vietnam are periods (TTC Land – SCR continues to pay full
implementing a variety of training formats and salary for employees attending training sessions).
support policies to encourage continuous learning. At the same time, talent development programs
Many companies combine flexible in-person and are being emphasized: Masan established the
online training, building LMS/internal academy "Growth Center" to implement mentoring and 360°
systems to effectively manage and deliver courses assessments for its leadership pipeline; Vinamilk
(MSB has upgraded its existing LMS platform; has developed a succession training plan for senior
Everpia developed the "Everon Academy" online leadership positions, directly supervised by the
platform to encourage self-learning). Regarding Board of Directors. These efforts show that
support, companies are willing to cover training Vietnamese companies are increasingly
costs for employees if it aligns with their objectives professionalizing their internal training processes to
(Vinamilk covers 100% of costs for eligible courses) sustainably develop human capital.
or ensure salary continuation during training

Average training hours per employee by industry

The average training hours per employee/year at The table illustrates the significant disparity in
Vietnamese companies in 2023 showed significant average training hours per employee across
differences across industries and individual companies in 2023, reflecting industry differences.
companies. The table below summarizes the The manufacturing and technology sectors lead
average training hours per employee at some with STK at ~247 hours/person and FPT at ~127
representative companies: hours. The financial and banking sector shows
average levels, for example: SeABank at ~48 hours,
Table 1: Comparison of average training hours
by company Vietcombank at ~41 hours, while VPBank stands
out with ~114 hours. In contrast, retail companies
Average training
Company Industry hours 2023 tend to have lower numbers, with Mobile World at
(hours/person/year) only ~19 hours. However, the gap between the
Soi The Ky
Manufacturing
247.10 highest and lowest companies is substantial, with
(Textiles)
some real estate companies having almost
FPT Technology 127.00
negligible figures (TTC Land - SCR provided only
VPBank Banking 113.70
around 389 training hours for the entire company,
SeABank Banking 47.70
equivalent to <5 hours/person/year). This indicates
Vietcombank Banking 41.00 that each industry and company has different
Bao Viet (BVH) Insurance 25.00 training strategies and resources, leading to uneven
Mobile World Retail (IT) 19.17 investment levels.
49 | Practicing ESG in Vietnam

Trends in internal training in Vietnam

Growth trend Internal training in Vietnam has shown a increase in total training hours. Since
consistent upward trend in recent years, 2017, internal training has steadily
reflected in both the number of courses expanded, peaking in 2020 (>240
and training hours. Many companies hours/employee), then plateauing in

1
reported substantial growth in 2023 2021 before rebounding in 2022–2023.
compared to 2022. For instance, VPBank This suggests that post-pandemic,
delivered 3,324 courses (+38%) totaling organizations are accelerating training
1,576,406 training hours (+78.8%). efforts to regain momentum and
Likewise, PV Drilling saw a 110% strengthen workforce capabilities.

The digitalization of training is becoming capabilities, flexibly combining

Diverse methods
increasingly evident, with many classroom sessions and e-learning
and technology
companies adopting blended models based on content. The shift to online
applications
that integrate in-person and online training is clear: Vietjet Air conducted
formats through technology platforms. 2,213 online courses in 2023, enabling

2
For instance, MSB fully leverages its large-scale and flexible learning.
internal LMS to manage learning more Technology adoption allows training to
efficiently. Vinamilk and An Cuong (ACG) occur anytime, anywhere, while
have established internal academies to reducing both costs and time compared
standardize and enhance employee to traditional methods.

Culture of self- Companies are increasingly promoting culture through internal trainer
learning and self-learning and internal knowledge networks. In 2023, Tasco trained 35
knowledge sharing. Everpia exemplifies this with its employees as internal trainers and
sharing "Everon Academy" online program, conducted sessions under the "Sharing
requiring each employee to complete at is Caring" initiative. Recognizing

3
least 10 hours of self-learning annually. individuals who actively share
Learning outcomes are tracked by the knowledge, such as through the learning
system and reported to management, culture awards at Mobile World, also
reinforcing a lifelong learning mindset. helps motivate employees and foster a
Other firms are cultivating a learning vibrant learning environment.

The trend of training versatile employees handle multiple roles, enabling more Multiskilling
to enhance flexibility in production - efficient workforce allocation and training and
operations is gaining attention, especially ensuring business continuity during workforce
in the manufacturing sector. Following disruptions (e.g., pandemics or localized flexibility
the success of the “Multi-skilled labor shortages). This trend is particularly

4
Workers” program in the North, Everpia beneficial in manufacturing and retail,
expanded this model to its Dong Nai where employee flexibility and
factory to improve workers’ skills and multitasking capabilities help improve
adaptability. Multi-skilled employees can operational efficiency.
 MCG Group | 50

Integrating ESG Internal training content is increasingly responsible corporate culture. Many
and expanding aligned with goals of sustainable and companies also adopt structured
training content inclusive development. Topics on training frameworks: Vinamilk, for
Environment, Social, and Governance instance, categorizes its programs into
(ESG) and soft skills are now integrated key areas such as safety/standards,
alongside technical knowledge. For professional skills, soft skills, and

5
example, Mobile World reported that leadership development. This ensures
100% of its training courses include employees are built up holistically,
content on environmental protection balancing expertise with
and social responsibility, helping raise complementary competencies.
employee awareness and promote a

Many large companies are investing in roadmaps based on job roles. For Leadership
future leadership development. Masan example, Mobile World offers “New development
established the Growth Center to Manager” programs for newly promoted programs
implement mentoring programs and leaders and tiered training for middle

6
conduct 360-degree leadership management, ensuring each level gains
assessments for senior managers, the relevant skill set. Aligning training
strengthening their leadership and team with job responsibilities helps employees
management capabilities. In parallel, perform effectively and prepares them
companies are designing training for career progression.

Inclusive training Companies are expanding training (78 hours) to support onboarding, while
across genders opportunities to cover all employees. In managers received around 46 hours of
and job levels 2023, SeABank reported that 100% of its leadership development. At Century
competency groups, target groups, and Synthetic Fiber Corporation, training is
job titles engaged in training, ensuring no fully equalized, with employees across all

7
one was left behind. On average, female levels and genders receiving the same
employees received 48 hours, and male average hours. This emphasis on
employees 47.5 hours of training, inclusive and equitable training helps
reflecting gender equality in access. strengthen workforce capabilities and
New hires underwent the most training fosters balanced organizational growth.

Internal training programs among structured training investments. The Allocation of

enterprises show clear disparities: technology sector leads in quality, with skill training
firms like FPT providing 127 programs by
have comprehensive
68.5% programs for all levels 14% 17.5% hours/employee. In the finance sector, industry
while most firms are at Level 5, around
training only for
management level not training 10% still lack any training programs,

8
revealing a significant intra-industry gap.
Some sectors - such as consumer Against regional benchmarks, Vietnam’s
materials, energy, and tech sector is approaching international
telecommunications - still have a standards, while the finance sector
significant number of firms lacking continues to trail behind.
51 | ESG
Practicing
practices
ESGininVietnam
Vietnam

The effects of internal training on companies and workers

Enhancing job satisfaction and performance

High-quality internal training useful. This satisfaction motivates

programs contribute to increased job employees to apply the knowledge
satisfaction and work performance. gained to their work, leading to
Employees at VPBank rate their improved efficiency, fewer mistakes,
training courses an average of 4.8/5, and enhanced service quality - thus
SeABank scores 9.22/10, indicating creating a competitive advantage for
that the content is relevant and the company.

Internal promotion opportunities and talent development

Internal training opens up during the 2022–2023 period). Masan

opportunities for career has built Mentoring, Leadership
advancement, helping to retain and Assessment programs to identify and
develop talent. Both PNJ and Vinamilk nurture young leaders. Employees
report that many management with clear development pathways are
positions were filled from internal more motivated to stay with the
sources (Vinamilk achieved 7.3% company for the long term.

Developing skills and securing sustainable jobs

Regular training enables employees employees feel secure in their long-

to adapt to change and secure long- term roles. Vinamilk positions
term employment. FPT provides an training as a core pillar of its
average of 127 training hours/year sustainability strateg - strengthening
per employee, ensuring their workforce quality and building a
technology skills remain up-to-date. foundation for the company’s future,
Everpia runs a “multi-skilled worker” while fostering motivation and
program, offering bonuses from commitment. Many firms see training
700,000 to 1,300,000 VND for those not only as a skills enhancer but also
meeting performance criteria. as a means to support livelihoods, by
Companies like TTC Land integrate equipping staff with essential
training with legal updates and knowledge on labor safety and
occupational safety, helping regulatory compliance.
 MCG Group | 52

Vietcombank – Shaping an ideal workplace and

nurturing a team of excellence
In the context of fierce competition for high-quality talent, Vietcombank not only affirms its position through
business results but also through a modern, humane human resources strategy. The period 2023-2024 marks
significant progress for the bank in internal training, talent development, and improving the well-being of
employees, establishing itself as a role model in the banking and finance industry.

Training - A sustainable investment in people

Vietcombank regards each employee as a "strategic help enhance practical skills. Practical training
asset," with 419 training courses and 140,000 programs, such as credit assessment, customer
participations in 2023. On average, each individual transactions, etc. will be applied in a simulated
receives 41 training hours/year. The bank offers a environment starting in 2024. Managers, on average,
variety of learning formats: e-learning, simulation- complete 7.3 courses/year, while staff members
based training, multi-platform learning, etc. which complete 5.7 courses - reflecting a deep-rooted
learning culture.

Comprehensive Benefits - A humane and committed workplace

In 2023, Vietcombank maintained its leading women and senior citizens, etc. Continuously
employee benefits policy with an average income of recognized as "Best workplace in Asia" and
450 million VND/employee. In addition, the bank "Outstanding employer for employees,"
offers comprehensive benefits: enhanced insurance, Vietcombank demonstrates a work environment
regular health check-ups, maternity support, where employees are acknowledged, listened to,
birthday benefits, retirement support, assistance for understood, and given opportunities to grow.

Fair development - Long-term planning

The bank uses a KPI-based evaluation system, talent pool. A total of 127 units across the system
combining both quantitative and qualitative have established Women’s Advancement
measures. The results are utilized for rewards, Committees to promote gender equality and female
training, mapping and rotation, ensuring fairness and leadership. Vietcombank also conducts annual
transparency. Over 60% of the workforce is female, employee engagement surveys and regular dialogues
with more than 50% included in the management with staff to continuously improve its policies.

Sustainable talent model

In the era where people are at the center,
Vietcombank pioneers a comprehensive human
resources strategy: thorough training, excellent
benefits, transparent evaluations, and talent
planning. Vietcombank's success is a testament to
the central role of people in sustainable
development, serves as an invitation for Vietnamese
businesses to invest in human capital - a key factor
for the future.
53 | Practicing ESG in Vietnam

Gender diversity in businesses: A driver of growth

and sustainable governance
The impact of internal training on businesses and employees
Many Vietnamese companies have a significant The banking sector typically employs a high
proportion of female employees, particularly in the proportion of female staff (e.g., Vietcombank,
banking and retail sectors. VPBank: ~60%), while technology and
manufacturing sectors show lower female
Table 2: Proportion of female employees and
representation (FPT: ~37%; Vinamilk: only ~23%). In
managers/leaders at major listed companies
retail, the contrast is also evident: PNJ (jewelry)
% female % female reports ~60% female employees, whereas Mobile
Company
employees managers/leaders
World (electronics) has around 41%. These figures
PNJ ~40%
60,84% underscore how industry characteristics strongly
Jewelry retail (leadership level)

VPBank No specific data shape gender distribution in the workforce.

60,1%
Banking available

Vietcombank ~53%
60%
Banking (leadership level)

MWG ~41.2%
~41%
Electronics retail (management level)

FPT 36,1%
37,4%
Technology (management level)

28,13%
Vietjet
35,96% (executive
Airline
management)

Vinamilk ~27,6%
~23,3%
FMCG (management level)

Comparison of female employment rate by industry

The proportion of women in the workforce varies significantly across industries:

Banking/ Finance Women account for a notably high employees are female. Many other
Industry average proportion of the workforce in the banks, such as MSB and SHB, also
banking sector, averaging around report over 60% female
60% female employees 60%. At Vietcombank and VPBank, for representation, confirming this as a
example, approximately 60% of sector-wide trend.

The proportion of female workers in While the industry remains male- Information technology
the IT sector is moderate, typically dominated, this figure reflects Industry average
around 30–40%. At FPT, for instance, ongoing efforts to attract more female
~37.4% of employees are female. women into the technology field. 30-40% employees

Manufaturing/ The proportion of women in industry female participation in industry is on

Industrial remains lower than in services. For the rise: the share of women in the
instance, Vinamilk has only ~23% industrial workforce grew from 21.8%
female employees, while in heavy (2017) to 26.7% (2022), reflecting a
industry, the figure is even lower; PV transition from agriculture to industry
Drilling reports just ~18.9%. However, among female workers.
 MCG Group | 54

Service (education, The service sector generally employs around 41%. Education and
healthcare, retail etc.) 45–50% female workers. In retail, the healthcare typically have the highest
Industry average proportion varies by product type: PNJ female representation. In contrast,
female (jewelry) reports ~60% female sectors like air transport - e.g., Vietjet
45 - 50% employees
employees, driven by the nature of - have a lower share (~36%), though
the job and customer base, while still higher than in heavy industry and
Mobile World (MWG) (electronics) has slightly below banking.

Women account for nearly 50% of the farming. However, a growing number Agriculture
agricultural labor force in Vietnam. of rural women are shifting to factory Industry average

Due to the household-based or service jobs in urban areas, female

economy, they play a key role in contributing to the rising female

50% employees

cultivation and small-scale livestock presence in industry, as noted earlier.

Overall, banking and consumer retail sectors have the highest proportion of female workers, while heavy
industry and high-tech sectors have lower proportions. This suggests that industry culture and job
requirements influence women's participation.

Trends in the change of female workforce rate (2020–2024)

The female workforce rate remains high and has In terms of industry structure, the proportion of
shown a slight increase in certain industries. female workers in the industrial sector has been
steadily increasing due to industrialization and the
Women comprise 48 - 49% of Vietnam’s workforce,
migration of young rural women into industrial
a proportion that has remained remarkably stable,
zones. Meanwhile, the service sector, particularly
even during the COVID-19 period. Vietnam ranks
retail and tourism, has also seen an increase in
among the countries with the highest female labor
female labor participation as the economy recovers
force participation rates globally, reflecting a
post-pandemic.
notable level of employment equality.

At the corporate level, some companies have recorded significant changes:

FPT: In 2023, the number PNJ: maintained a ~60% Banking: The female rate
of female employees at female workforce in 2023 at major banks remains
FPT increased by 11.6% - 2024, reflecting its stable at 55-60%.
compared to the previous ability to attract and (Vietcombank, VPBank
year, raising the female retain women. The have maintained ~60%).
workforce rate from company’s strategy to However, the banks are
about 33% to 37.4%. This empower women and increasingly focusing on
demonstrates FPT's promote gender equality raising the proportion of
efforts to promote supports its sustained women in leadership
women's participation in high participation rate. positions rather than just
the technology sector. in entry-level roles.
55 | Practicing ESG in Vietnam

The role of women in leadership and its impact on ESG performance

A common trend in Vietnam is the increasing Vietcombank, women account for as much as 53%
number of women holding managerial positions. of department heads, while Vietjet has set a target
According to the Ministry of Labor, approximately to increase the proportion of female managers to
25% of CEOs and board members are women - the 40% by 2026, up from around 28% in 2023.
highest rate in the Asia-Pacific region.
These are clear examples of efforts to train and
At many companies, women are being promoted to promote women as part of organizations’ human
mid- and senior-level leadership roles. At resource development strategies.

The participation of women in leadership positions is not only a matter of gender equality but also has a
positive impact on a company’s sustainable performance (ESG). Numerous academic studies and practical
governance cases have highlighted the correlation between female leadership and ESG and financial
performance.

Quality of ESG reporting Promoting sustainable Financial performance

and Implementation governance and ESG

The presence of women in Women on boards or in An IFC study1 found that

leadership has a positive and management are often viewed as companies with >30% women on
statistically significant effect on more sensitive to environmental the board achieve an average
ESG reporting readiness. The and social issues, with stronger ROA2 of 3.8%, compared to 2.4%
hypothesis that female attention to stakeholder for those without female board
leadership strengthens ESG interests (e.g., employees, members. While a financial
focus is supported at a p-value customers, communities) and a metric, this underscores the
of 0.000. Companies with female clear focus on sustainability positive impact of female
leaders are more transparent goals. Their presence signals a leadership on governance and
and proactive in disclosing ESG company’s commitment to sustainable strategy. In
information. Regression results transparency, diversity, and Vietnam, female leaders in the
show that the variable social responsibility. This is banking sector are highly valued
“proportion of women in consistent with prior studies for their crisis management,
leadership” has a beta (e.g., Bear et al., 2010; Kiliç et al., employee care, and ability to
coefficient of ~0.256, ranking 2015; Arayssi et al., 2016) that drive engagement and
third among the factors highlight the positive influence of operational efficiency. They are
influencing ESG readiness—after female leadership on ESG often seen as inspirational,
accounting expertise and practices. decisive, and compassionate -
management processes. traits that support resilient and
sustainable growth.

Overall, women in leadership play a vital role in steering companies toward sustainable development.
They bring diverse perspectives, promote ESG initiatives, and foster a responsible corporate culture -
enhancing both reputation and ESG performance, while delivering long-term financial value through
transparent, sustainable governance.

1 IFC study on gender diversity in corporate leadership in ASEAN

2 Return on assets (ROA)
 MCG Group | 56

Talent is a partner: The new HR strategy of

pioneering companies
In the context of a competitive labor market, many work environment. This drives companies to
Vietnamese companies consider talent innovate in attracting and retaining talent, from
management – including training, development, building a positive culture to implementing
and retaining top talent – as a core strategy for specialized training. This report will analyze
sustainable development. According to a survey by prominent talent management initiatives in
Talentnet, in addition to salary and benefits, Vietnamese businesses, comparing large, medium,
employees are increasingly interested in learning and small-scale companies, and drawing
opportunities, career advancement, and the conclusions on scalable models.

Talent development and retention initiatives in large enterprises

Large enterprises often make significant nurture a pipeline of successors but also create
investments in structured leadership and talent motivation for employee retention. Below are some
development programs. These initiatives not only notable examples:

01 FPT

For over a decade, FPT has through the FPT Academy and its
implemented an internal MiniMBA internal MOOCs platform, with
program for mid-level managers, total learning hours expected to
Đưa ảnh
contributing 59,000 training hours reach 1.5 million in 2023 – a 150% của FPT
in 2023. The program condenses
traditional MBA content, helping to
increase compared to the previous
year. Learning at FPT has become
vào đây
enhance leadership capabilities a daily activity, helping retain
within the core team. The firm also talent through a continuously
promotes a learning culture developing environment.

Vinamilk 02

In 2023, Vinamilk organized 584 to training, Vinamilk has built a

internal training courses, friendly work environment, good
attracting 28,000 participants with benefits (insurance, health check-
a total of 300,000 training hours. ups, travel, etc.), and has been
The company also sponsors certified as an “Excellent
scholarships for outstanding Workplace” with 83% of
employees, such as leadership employees satisfied and 93%
programs from PACE, MBA Talent, trusting the company’s mission – a
FMIT, etc. to enhance skills and testament to the effectiveness of
employee engagement. In addition its talent management.
57 | Practicing ESG in Vietnam

03 masan

As a diversified conglomerate, leadership assessments, and 360-

Masan Group considers human degree feedback for top talent and
resources a core competitive senior managers to strengthen
advantage and continuously leadership and team
invests in talent development. In effectiveness. Results show 93%
2023, Masan launched the Growth satisfaction with an average score
Center, aiming to become a of 4.65/5. In addition, Masan’s
workplace where every individual creative retention strategy
can realize their full potential. The includes offering ESOPs at
center conducted over 1,700 favorable prices, reinforcing long-
training sessions and workshops term commitment. With this
(e.g., leadership, public speaking, comprehensive HR strategy and a
problem-solving, decision- strong culture of connection,
making), attracting 33,214 Masan was named "Best
participants. Masan also Workplace in Asia" for two
implemented mentoring programs, consecutive years.

vpbank 04

VPBank exemplifies how talent technical skills, notably offering 23

development can align closely with cloud computing courses to
business strategy. Each year, it support the shift to Public Cloud,
delivers mandatory training to drawing nearly 1,500 participants.
ensure employees maintain core This initiative helps build a core
knowledge. A key initiative is the tech team to drive digital
iLEAD Leadership Program, transformation. VPBank’s
designed to build a succession approach illustrates how large
pipeline. In 2023, iLEAD enrolled enterprises can align training with
94 mid-level managers, with strategic goals, enhance team
tailored content on leadership and capabilities, and retain top talent
management. Beyond leadership, by engaging them in mission-
VPBank also prioritizes modern critical projects.
 MCG Group | 58

05 Bao Viet
In the finance–insurance sector, management - through integrated
Bao Viet Group has pioneered a use of digital tools and platforms.
digital learning map to build a This structured approach
digitally capable workforce aligned accelerates digital literacy across
with evolving market trends. Its the organization and prepares a
2023 training program focuses on next-generation workforce with
5–6 key digital competencies strong technological expertise. It
(e.g., data management, represents an innovative model for
cybersecurity, digital leadership). talent development in the Industry
The roadmap guides employees to 4.0 era, particularly for large
develop digital skills - in work, enterprises undergoing digital
communication, and information transformation.

Vietjet Air 06

The aviation industry is also helping them enhance their

embracing the trend of talent operational capabilities in the
development. Vietjet Air has competitive aviation environment.
collaborated with the FSB Institute The fact that a large private
of Management & Technology (FPT enterprise like Vietjet invests in a
University) to design a customized "tailor-made" leadership program
MiniMBA program for its demonstrates its long-term vision
management. This specialized in building a succession team and
MiniMBA program equips Vietjet's its commitment to retaining talent
managers with lean management by learning and development
knowledge and leadership skills, opportunities.

In general, large corporations and businesses in Vietnam are increasingly professionalizing their talent
management practices. They establish internal academies, collaborate with reputable educational
organizations, create training pathways for each level, and align employee development with the
company's strategy. At the same time, comprehensive benefits and recognition as great places to work
help these companies maintain high employee engagement and minimize brain drain.
59 | Practicing ESG in Vietnam

Talent development initiatives

Businesses are flexible and creative in their approach to talent, focusing on solutions that align with their size
and culture:

PNJ – retail

As a notable retail company, PNJ attracts talent based on market surveys and continuous
through a culture of long-term commitment and improvements. Thanks to its brand reputation and
shared success, rather than solely competing on positive corporate culture, PNJ consistently ranks in
salary and benefits. The leadership has established the Top "Best places to work," demonstrating its
a modern governance system, with compensation effectiveness in retaining top talent.

Medium-sized bank

Medium-sized banks are prioritizing succession program, organizing 2 courses with 195 participants,
planning. In 2023, SeABank delivered 144 hours of creating a lean but effective leadership pipeline. This
training, mentoring, and ESG workshops for its focused approach aligns well with the needs of mid-
leadership team. MSB launched a Talent Pool sized institutions.

TASCO – Infrastructure & Real Estate

In the infrastructure and real estate sector, Tasco convey company culture, strategy while providing
has established Tasco Academy and the Next management skills training for the next generation of
Leaders (TNL) program to develop strategic leaders, strengthening employee engagement and
personnel. This "internal training hub" model helps creating a clear development pathway.

TTC Land (SCR)

With limited resources, TTC Land leverages its conferences. This “senior guiding junior” model
experienced leadership team to mentor employees. helps reduce costs, enhance professional
At the same time, the company provides soft skills expertise, and strengthen internal cohesion
training and opportunities to attend industry effectively.

Medium-Sized Manufacturing Enterprises

BAF Vietnam delivers specialized training in the training programs for staff, middle managers, and
Feed–Farm–Food chain, veterinary science, Lean Six senior leaders, providing a clear development path
Sigma, and quality improvement. STK offers tiered and enhancing employee engagement.

EVERON

Though a small enterprise, Everon invests Academy, an internal platform with video lectures
systematically through its “Multi-skilled Worker” by international experts, offers cost-effective, high-
program—covering operations, quality quality learning. This scalable model serves as a
management, and equipment use. The Everon valuable reference for other small businesses.
 MCG Group | 60

Overall, while small and medium-sized enterprises in Vietnam may have more limited resources, they have
flexibly adopted various talent management solutions suited to their context: from establishing scaled-down
internal academies, key succession leadership programs to leveraging internal mentoring and multi-skill
training. These efforts help retain top employees amidst competition from larger companies, while also
building a solid human resource foundation for future business expansion. A common thread is that a cohesive
corporate culture and opportunities for personal growth serve as the “magnet” that keeps talent committed
to the organization.
61 | Practicing ESG in Vietnam

Effectiveness and innovation of the programs

By implementing diverse talent management programs, many Vietnamese enterprises have achieved positive
results in developing their workforce and retaining key personnel:

Enhancing workforce quality

Specialized training programs have helped elevate the capabilities of the workforce. After completing the
MiniMBA courses, many FPT managers provided positive feedback on their management skills and ability to
inspire. Masan trained over 33,000 employees in 2023, with a satisfaction rate of 93%, indicating that the
quality of training meets needs and directly contributes to business results.

Retaining talent and increasing engagement

Companies that invest in their people often see lower turnover and higher employee loyalty. At Vinamilk, a
positive work environment and strong culture of commitment have helped retain staff—93% trust the
company’s mission. Masan is also recognized for aligning employee development with organizational growth.
Retaining key talent reduces recruitment costs and ensures operational continuity.

Innovation in training

Companies are adopting innovative training methods. FPT leverages MOOCs (e.g., Coursera, Udemy), provides
sponsored accounts, and integrates courses like Self-Management to foster emotional intelligence. Bao Viet
personalizes learning through digital platforms. Many organizations now embed mentoring, 360-degree
feedback, and focus on future skills such as creative thinking, digital fluency, and change management.

Aligning training with company strategy

Talent programs are increasingly aligned with long-term business goals. VPBank trained 1,500 employees in
cloud computing to support its digital transformation, enabling staff to gain new skills and see meaning in their
contributions. Other companies offer training in green production, ESG, and related areas, helping employees
connect their roles to the company’s sustainability strategy.

Recognized through awards and reputation

In 2023, companies like Vinamilk, Masan, FPT, and PNJ were named among the “Best Workplaces in Asia”,
reflecting their effective HR strategies. Such recognition reinforces their employer brand, creating a positive
cycle: strong programs → engaged employees → strong brand → attracting top talent.

Talent management not only nurtures & retains top talent but also builds learning culture, fosters
innovation & creates sustainable competitive advantages for businesses in the era of the new workforce.
 MCG Group | 62

Notable replicable models

Corporate academy and External training &

Internal Mini-MBA lifelong learning culture scholarships

FPT and Vietjet run MiniMBA FPT and Masan have set up Vinamilk offers scholarships
programs to develop internal academies that for high-potential employees
successors within 6–12 integrate in-house trainers, to attend MBA or leadership
months at optimized costs, external experts, and e- programs under a return-to-
replacing the need for external learning to promote serve agreement. This model
MBAs. These tailor-made continuous learning. By enhances engagement &
courses build practical encouraging self-learning, skills, which is effective for
knowledge and leadership they gain stronger control over organizations with less
skills. Large corporations like talent development and developed training systems.
Vingroup and Viettel can reduce dependence on the Success hinges on a clear
adopt this model to drive external labor market. post-training deployment
proactive talent development. strategy to maximize impact.

Coaching and continuous Long-term compensation

Talent Pool Program learning culture policies tied to performance

MSB and Tasco apply the SeABank exemplifies a strong Policies like Masan's ESOP,
Talent Pool / Next Leaders coaching culture, with senior profit-sharing at PNJ align
model to identify and develop managers mentoring junior employee benefits with
young talents through job staff. The bank scales this business results. Employees
rotations, in-depth training, model by offering coaching become shareholders,
and mentoring. This approach training and embedding fostering long-term
is cost-effective but provides development criteria into dedication. Other companies
clear motivation for performance evaluations. This can design reward pools for 3-
employees, reducing the risk fosters talent retention 5 years or offer restricted
of "job-hopping" due to a lack through both knowledge stock to key staff, creating a
of promotion opportunities. transfer and emotional mutual commitment.
connection.
 63 | Practicing ESG in Vietnam
63 | Practicing ESG in Vietnam

Strategic message: Each company needs

to adapt models flexibly depending on its
size and sector, but the core principle is to
treat talent as the strategic center. Training
and retention costs are not burdens, but
long-term investments in competitive
capabilities. Companies that persist will
build elite teams and sustainable
advantages.

Future trend: Talent management is

becoming the top priority for Vietnamese
businesses - from large corporations to
small and medium enterprises. Those who
invest wisely will have strong, committed,
and creative teams, while those who
neglect it will fall behind due to talent
drain. In the future, trends will shift toward
personalized development, the application
of technology (AI, e-learning), and aligning
training closely with business strategies.
Companies should view talent as
development partners - to expand both
domestically and internationally.
 MCG Group | 64

Performance beyond numbers: A holistic view of

talent evaluation
Performance evaluation systems are essential for guiding, motivating, and developing employees. When built
with transparency and standardization, they align individual goals with corporate strategy and enhance
motivation. Many Vietnamese companies now adopt advanced approaches like KPIs, OKRs, 360-degree
feedback, and multi-dimensional evaluations to improve performance effectiveness.

Key Performance Indicators Objectives & Key Results

(KPIs) (OKRs)

Measure work performance Set directional objectives and

through quantitative indicators. measurable key results.
Be cascaded from the Be flexible, drive
organizational to individual breakthroughs, often
level, ensuring goal combined with KPIs to
alignment across all monitor daily activities and
functions. Common performance guide long-term direction.

Multi-dimensional
evaluation methods 360-degree
evaluation feedback
Combining multiple criteria
Collect feedback from
(performance, competencies,
managers, colleagues,
behaviors…)
subordinates, and customers,
Be used in BSC to ensure providing a comprehensive
comprehensive evaluation and reflection of the employee's
personalized capability skills and behaviors.
development.
65 | Practicing ESG in Vietnam

Real-World Examples from Leading Enterprises

Many large corporations and companies in Vietnam have implemented modern performance evaluation
systems and achieved positive outcomes in HR management. Below are some standout examples:

Vinamilk – Multi-dimensional Evaluation and Employee Competency Development

Vietnam Dairy Products Joint Stock Company (Vinamilk) is one of the leading enterprises in building a positive
working environment and sustainable human resource development. Vinamilk applies a multi-dimensional
performance assessment system to improve efficiency and transparency in human resource management.
100% of employees at Vinamilk are periodically assessed on their work performance. This assessment system
combines many factors: from work performance to competencies and behavior, providing employees with
comprehensive feedback. Notable features of Vinamilk’s system include:

Comprehensive Coverage Transparency and Fairness

Every employee undergoes Evaluation results are based on clear

periodic performance evaluations, and transparent criteria, with input from
ensuring no one is left out and all multiple levels (managers, colleagues),
achievements are recognized. ensuring fairness.

Focus on Competency Development Applying the 3P method

The evaluation process identifies The 3P method ensures fairness

training and development needs and among employees in different
outlines promotion pathways for positions, while encouraging
employees. each individual to maximize their
potential.

Thanks to its effective performance evaluation system, Vinamilk has built a capable and committed workforce,
earning it the title of Top 1 Most Favorite Employer in 2024, while sustaining impressive business performance.
66 | Practicing ESG in Vietnam

Real-World Examples from Leading Enterprises

Many large corporations and companies in Vietnam have implemented modern performance evaluation
systems and achieved positive outcomes in HR management. Below are some standout examples:

Vinamilk – Multi-dimensional Evaluation and Employee Competency Development

Vietnam Dairy Products Joint Stock Company (Vinamilk) is one of the leading enterprises in building a positive
working environment and sustainable human resource development. Vinamilk applies a multi-dimensional
performance assessment system to improve efficiency and transparency in human resource management.
100% of employees at Vinamilk are periodically assessed on their work performance. This assessment system
combines many factors: from work performance to competencies and behavior, providing employees with
comprehensive feedback. Notable features of Vinamilk’s system include:

Comprehensive Coverage Transparency and Fairness

Every employee undergoes Evaluation results are based on clear

periodic performance evaluations, and transparent criteria, with input from
ensuring no one is left out and all multiple levels (managers, colleagues),
achievements are recognized. ensuring fairness.

Focus on Competency Development Applying the 3P method

The evaluation process identifies The 3P method ensures fairness

training and development needs and among employees in different
outlines promotion pathways for positions, while encouraging
employees. each individual to maximize their
potential.

Thanks to its effective performance evaluation system, Vinamilk has built a capable and committed workforce,
earning it the title of Top 1 Most Favorite Employer in 2024, while sustaining impressive business performance.
67 | Practicing ESG in Vietnam

MSB – Periodic Evaluation for 100% of Employees, Linked to Competitive Compensation

Maritime Commercial Joint Stock Bank (MSB) is another notable example of standardizing performance
evaluation systems. MSB has established a clear, technology-supported process for accurately and
objectively capturing employee performance. All employees undergo regular evaluations (100% participation),
and the results are closely tied to compensation policies. Key features of MSB’s system include:

Periodic and comprehensive evaluation

Annually (or semi-annually), MSB evaluates all staff based on job KPIs and behavioral criteria. This
ensures fairness by recognizing all contributions, regardless of role or seniority.

Market Comparison and Continuous Updates

MSB regularly updates market salary data to adjust its compensation strategy accordingly,
ensuring suitability and competitiveness. High performers receive appropriate bonuses, and
promising employees are considered for salary increases, fostering retention.

Integrate Technology in Evaluation

The bank has invested in HR software that tracks individual goals and results. Departments enter
KPI data into the system, and managers approve it online, shortening the evaluation cycle and
reducing paperwork.

Transparent and swift

Evaluation results are communicated to employees promptly, along with detailed feedback.
Thanks to digital processes, employees receive their assessments and bonus information shortly
after each cycle, building trust in the system.

MSB’s approach highlights the importance of linking performance evaluation with compensation and
leveraging market data to retain talent. This allows the bank to maintain a stable and dedicated workforce,
contributing to its success in the competitive banking sector.
 MCG Group | 68

Masan Group (MSN) - Developing Future Leaders Through Structured Evaluation

Masan Group (MSN) focuses on building a future leadership team through a systematic performance appraisal
system. Twice a year, Masan’s senior leadership conducts comprehensive evaluations company-wide. This
process assesses not only job performances but also learning ability, leadership potential, and expertise of
key employees. Notable features of Masan’s system include:

Wide Scope and High Frequency

Unlike many companies that only conduct 99% of its employees participated in
year-end evaluations, Masan conducts two performance evaluation and career
company-wide evaluations each year. In 2023, development. This almost absolute rate shows
nearly 98% of Masan Group’s workforce and Masan's seriousness and commitment to
evaluating all employees.

Multi-Dimensional and Team-Based

Masan applies a multi-dimensional approach Team assessments allow the company to

to performance evaluation: assessing measure the success of project teams and
employees across various aspects such as departments against shared goals, avoiding an
KPIs, competencies, and attitudes, and uses overemphasis on individual performance at
group-based evaluations where appropriate. the expense of collective achievements.

Strategic Alignment and Talent Identification

Masan’s leadership sets annual strategic development list. This systematic approach
goals and aligns KPIs accordingly. Evaluation enables Masan to proactively develop
results are used to identify potential leaders - successors for key positions.
rising stars”, for future leadership

Focus on career development

Beyond performance assessments, Masan are addressed through targeted training or role
also designs personalized career development rotations, while leadership potential and
plans based on evaluation outcomes. strengths are further cultivated through the
Weaknesses identified during assessments Group’s mentoring and coaching programs.

Through the example of Masan, we can see an important trend: using the performance evaluation system as a
strategic tool to both improve current work efficiency and discover and develop talent for the future. This
brings long-term competitive advantages to the business.
69 | Practicing ESG in Vietnam

Century Synthetic Fiber Corporation (STK) – KPI-based performance management via digital workflows

Century Synthetic Fiber Corporation (STK) - a textile A special feature at STK is the application of
fiber enterprise - has built a very detailed quality technology in recording daily performance. For
and work performance management system for the production department, from machine
each individual and unit. Each department at STK operators to factory managers, the company
has a target table (KPIs) by year, quarter, month; deploys daily work checklists and records daily
after each quarter, the departments update and work productivity using the SAP and POC software
upgrade their KPIs, and at the same time re- systems. Thanks to the integration with SAP - an
evaluate the suitability of those indicators. This enterprise resource planning system - data on
ensures that KPIs are always in line with the actual output, machine running time, error rates, etc. are
situation and the company's new goals. collected automatically. Managers can monitor
performance reports in real time, comparing them
with the set KPIs.

The combination of multi-layered KPI system with

digital technology helps STK:

Closely monitor work efficiency at

01 positional and daily level, promptly
detect problems (such as reduced
productivity, machine failures affecting
efficiency) for adjustment.

Improve employee discipline and self-

02
awareness: each has clear daily and
monthly goals to complete.

Create a data culture in management:

03 all decisions on rewards or process
adjustments are based on transparent
KPI data.

STK is a typical example of the trend of manufacturing enterprises applying KPIs flexibly, continuously and
digitizing the performance evaluation process. As a result, the company not only increases labor productivity
but also improves product quality and optimizes costs thanks to effective management.

In addition to the above examples, many other companies are also innovating their performance evaluation
systems. For instance, Tasco Corporation has built a performance and competency evaluation system
based on international standards while adapting it to the Vietnamese context. Bao Viet Group has updated
its performance evaluation framework with more detailed classification criteria and added behavioral skill
assessments. These efforts demonstrate that businesses share a common goal: optimizing performance
evaluation and talent development.
 MCG Group | 70

Current trends in implementing performance evaluation systems

Human resource performance management is constantly evolving to adapt to a changing work environment.
Based on actual practices at businesses and the latest research, several key trends in performance evaluation
system implementation can be identified:

01 Increasing transparency and fairness in evaluation

Companies are becoming more transparent with evaluation criteria, processes, and results so employees
better understand and trust the system. Instead of subjective assessments, many are adopting competency
frameworks, specific scoring systems, and additional criteria related to attitude and behavior. For example,
Bao Viet has refined its rating levels from 3+ to 3- to create more nuanced evaluations.

Regular feedback (monthly or quarterly) is replacing traditional end-of-year reviews, helping to build a culture
of open feedback and enable timely adjustments. Some companies also publicly share portions of the results
(such as lists of top performers or departmental goals) to increase motivation and transparency.

02 Applying digital technology and data in performance management

Technology has transformed how performance is evaluated. The trend is to leverage digital platforms to
collect and analyze performance data quickly and accurately. Many companies are deploying Performance
Management Systems (PMS) integrated into their HRM systems. These platforms offer:

Real-time Automated Advanced data Enhanced user

tracking evaluation analytics experience
Managers can view daily Some metrics (revenue, Analytical tools help The widespread use of
KPI dashboards and production errors,…) are identify trends (frequent digital tools (online self-
weekly OKR progress. automatically updated, underperformance, assessment forms,
Employees can also reducing errors and data missed deadlines…) to anonymous 360-degree
monitor their own entry effort. enable early warnings. feedback via email,
performance via apps, video-based review
STK uses SAP to record AI is used to generate
knowing how much of meetings,…) makes the
daily output and forecasts and
their targets they’ve process smoother and
productivity for personalized
achieved. less stressful than
continuous performance recommendations (e.g.,
traditional paper-based
tracking. training based on
methods.
employee weaknesses)

Especially, the raise of remote and hybrid work Businesses have invested more in online
has accelerated technology-driven performance collaboration and task-tracking tools (e.g.,
management. When employees are not always in Microsoft Teams, Trello, Base.vn), integrating
the office, setting clear goals and tracking them performance evaluation criteria. In parallel,
with data becomes essential for ensuring digitizing processes (like at MSB) helps shorten
productivity. feedback loops and speed up decision-making.

In summary, the adoption of digital technology has brought timeliness, accuracy, and convenience to
performance evaluation systems. This trend is expected to continue growing, with big data and AI further
refining human resource assessment processes.
71 | Practicing ESG in Vietnam

03 Focusing on people development and a culture of continuous performance

A major shift in modern performance management philosophy is moving from a mindset of “evaluation for
ranking” to “evaluation for development.” As a result, performance evaluation systems are increasingly tied
to training, coaching, and cultivating a culture of continuous improvement for employees. Organizations
recognize that the ultimate goal is not just to rate employees, but to help them grow and stay engaged. This
people-focused trend is reflected in:

Evaluation Linked to Training Coaching & Feedback

Performance evaluation is the basis Coaching culture is gradually
for creating an individual development replacing traditional penalizing.
plan (IDP). For example, if an employee Managers play a guiding,
underperforms due to a lack of supportive role rather than a
technical skills, they will be assigned to criticizing one. Many companies
relevant training courses. Vinamilk is a organize “1-1 meetings” between
prime example, conducting hundreds managers and staffs every week to
of training sessions annually based on discuss goals, solve problems, and
development needs identified through help improve skills and
performance assessments. performance.

Recognition & Reward Connection to Career Paths

Developing people is not only about A growing trend is linking performance evaluation
giving feedback but also timely to career advancement. At Masan, evaluation
rewards. Transparent evaluation results are used to select potential candidates for
systems help identify outstanding leadership development programs. Employees
contributions for recognition perceive evaluations as meaningful, knowing that
(bonuses and public high performance opens opportunities for
acknowledgment for exceptional promotion and strategic projects, creating strong
KPI achievement). This recognition long-term motivation.
boosts employee motivation and
engagement.

With this people-centric approach, performance evaluation systems are no longer dreaded or demotivating.
Instead, they become tools that support employee growth. Employees feel heard and invested in, leading to
greater engagement and satisfaction. One study revealed that most employees would leave a job if they didn’t
feel valued; conversely, when companies show appreciation through ongoing feedback and development
support, employees become more loyal and committed. Building a culture of continuous performance -where
everyone learns and improves together - is becoming an inevitable trend.
 MCG Group | 72

04 Flexible and adaptative to the new trend

Performance systems need to be simple, swift, and customizable. After the pandemic, the hybrid model
promotes evaluation based on results instead of time spent.

Simplifying the Increasing Employee

process Customizing by Role Initiative

Eliminate complex forms, E.g., production workers Allowing employees to

apply project-based or are evaluated based on propose evaluation
simplified evaluation output; creative staff criteria tailored to their
templates. based on idea quality. roles.

01 02 03

Companies must continuously adapt their performance evaluation systems - ensuring transparency,
flexibility, and a people-centric approach - to meet employee expectations and respond to changes in the
business environment.

Impact of performance evaluation systems on business development

The successful implementation of modern performance evaluation systems brings numerous positive impacts
on the overall development of a business. The most notable effects can be seen in the following areas: work
performance, employee engagement, and the organization’s competitive capacity.

Improve performance: Employee retention: Increase competitiveness:

Evaluations help individuals focus Employees who feel recognized Evaluations improve execution,
on goals, receive timely feedback, and developed tend to be more enhance adaptability, and ensure
and improve outcomes. loyal. Fair evaluations improve a strong talent pipeline, thereby
Organizations achieve higher leadership-employee enhancing reputation in the labor
overall efficiency, reduce costs, relationships and foster a high- market.
and increase productivity. performance culture.

Performance evaluation systems are emerging as strategic HR tools. When flexible, transparent, and
development-focused, they go beyond measuring performance to foster learning, engagement, and
sustainable growth. Leading Vietnamese companies are already seeing gains - from improved results to a
stronger organizational culture.
73 | Practicing ESG in Vietnam

Employee Engagement Index 2023–2024:

Numbers That Speak
Factors influencing employee satisfaction and engagement

COMPANY CULTURE
01
A positive culture fosters employee pride and loyalty. FPT has built a democratic
environment that values individuality and creativity; employees appreciate fairness,
teamwork, and strong leadership. 95.97% of GEC employees are satisfied with the corporate
culture, and 87% of Mobile World employees trust that their leaders embody the company's
values - laying a strong foundation for trust and engagement.

BENEFITS POLICY
Attractive compensation is one of the top drivers of satisfaction. FPT offers unique benefits,
02
including enhanced insurance, home and car purchase support, with over 2,600
participants. SeABank implements comprehensive welfare packages, including ESOP,
health insurance, and additional leave for long-serving employees - placing the bank in the
Top Best Places to Work 2024. MSB maintains stable income for employees during tough
periods, providing a sense of security.

WORK ENVIRONMENT
03
A friendly, safe, and supportive workplace allows employees to work effectively and stay
long-term. FPT and SeABank build a professional and inclusive workplace. Vietjet has
created a cheerful, creative work culture, contributing to its three-time recognition as one of
the 'Best Places to Work in Asia.' Many companies are investing in modern workspaces,
flexible schedules, and work–life balance initiatives to enhance the employee experience.

CAREER ADVANCEMENT AND DEVELOPMENT OPPORTUNITIES

04
Clear career paths and development opportunities are crucial to retaining talent. MSB
encourages internal rotation to develop skills; Vietjet offers limitless advancement
opportunities. FPT invests in developing young generation of leaders (47% of leadership are
Gen Z), helping employees envision a future within the company rather than seeking
opportunities elsewhere.

LEADERSHIP STYLE
05
Fair, attentive, and empowering leadership has a positive impact on employee engagement.
At FPT, employees express satisfaction with leadership fairness and capability. MSB earns
praise for its comprehensive direction and approachable, transparent management style. At
Mobile World, 81% of employees value their relationship with their direct managers. Internal
feedback policies and an empowering culture help employees feel respected and trusted.
 MCG Group | 74

Outstanding Trends in 2023–2024

In recent years, employee satisfaction and engagement in Vietnam have significantly improved. Here are
some notable trends observed in large enterprises through 2023–2024:

1.
Turnover rate reduced significantly

After the pandemic, employees have become more cautious about changing jobs. According to Talentnet–
Mercer 2024, the turnover rate dropped from 19.4% (2023) to 9.6% (H1-2024). FPT recorded its lowest attrition
rate in five years. This trend shows that employees prioritize stability and retention policies are effective.

2.
Employees are more committed and willing to stay long-term
Employee engagement continues to rise. At SeABank, 90% plan to stay at least two years, while MSB reports a
similar level of nearly 90% long-term employee commitment. At Mobile World, 89% of employees reported
never having considered leaving, reflecting strong loyalty and motivation.

3.
Companies recognized as best workplaces
Vietnamese firms increasingly appear in prestigious workplace rankings.
▪ FPT: Top 10 (2022) → Top 5 (2023), globally certified by Great Place to Work®
▪ Vietjet Air: 3 times recognized by HR Asia for its fun and safe environment.
▪ MSB, SeABank: consistently listed in Best Workplaces Asia rankings.
▪ Vinamilk: Named “Best Place to Work in Asia 2023” (HR Asia) and leading Employer of Choice 2024 (by
CareerViet)
▪ Continuous recognition shows that Vietnamese companies are not only meeting employee expectations
but also leading in the adoption of international standards.

4.
High internal satisfaction scores

Internal surveys at leading enterprises show satisfaction scores exceeding 80%:

▪ Vinamilk: 86.4% of employees satisfied; onboarding program scored 4.67/5.
▪ SeABank: Average satisfaction of 90.1%; 63.9% of employees “emotionally engaged” with the organization.
▪ Bao Viet: Health checkup program rated 4.78/5 by 95.6% of employees
These figures confirm that employees appreciate their work experiences, providing a strong basis for
companies to continue enhancing HR policies and building ideal work environments.
75 | Practicing ESG in Vietnam

For a better illustration, the table below summarizes key employee satisfaction and engagement indicators at
leading Vietnamese companies:

# Enterprises Employee satisfaction / engagement index (2023)

▪ 87% of employees rated the company as a “Great Place to Work”.

▪ Turnover rate is at its lowest in the past 5 years (lower than during the COVID period)

▪ ~86,4% overall employee satisfaction (internal survey).

▪ Received “Excellent Workplace” certification and ranked No.1 in CareerViet’s
“Employer of Choice 2024.”

▪ Voted 3 times as “Best Place to Work in Asia” (by HR Asia).

▪ Work environment is safe, fun; benefits and income are attractive; promotion
opportunities are open.

▪ 89% of employees never thought about leaving the company.

▪ 77% of employees are highly enthusiastic at work
▪ 87% of employees trust leaders to live by the company’s values

▪ ~90% want to stay long-term and remain motivated at work

▪ Awarded “Best Place to Work in Asia” two years in a row (HR Asia 2021–2022).

▪ 90,1% average employee satisfaction (Increased 1.22% YoY).

▪ 90% expect to stay with the company for ≥2 more years
▪ Engagement index reached 63,9% (higher than the regional average of ~50%)

▪ 95,6% of employees are satisfied with health care programs (score: 4.78/5)
▪ Benefits and labor dialogue continuously improved in recent years (per 2023
Sustainability Report).

The analysis shows that employee satisfaction and engagement levels at major Vietnamese companies are
high and steadily improving. Positive corporate culture, competitive benefits, a supportive work environment,
clear advancement opportunities, and effective leadership are the core drivers. Investing in people has
delivered clear outcomes: employees are happier and more loyal, turnover rates are falling, and employer
branding is strengthening. In a competitive talent market, maintaining employee satisfaction will be a key
strategy for attracting, retaining top talent, and fostering sustainable business growth.
 TOP FAVORITE EMPLOYERS 2024LARGE ENTERPRISES

#1

VINAMILK

#2 #3 #4 #5 #6

VINPEARL SAMSUNG ELECTRONICS MASAN CONSUMER FPT IS ONLINE MOBILE SERVICES

HCMC CE COMPLEX PRODUCTS JOINT STOCK JOINT STOCK COMPANY
CO., LTD COMPANY – MASAN CONSUMER MOMO

#7 #8 #9 #10

PNJ GROUP ACECOOK VIETNAM HCM DEVELOPMENT JOINT HOA SEN GROUP JOINT
STOCK COMMERCIAL BANK STOCK COMPANY

TOP 20

LOTTE MART DIEU PHUC TECHNICAL PANASONIC VIETNAM KFC VIETNAM TRUONG HAI GROUP JOINT
TRADING AND SERVICE STOCK COMPANY
COMPANY LIMITED

VIETNAM POST HCM UNION OF TRADING GOLDEN GATE GROUP JOINT SAIGON – HANOI KAROFI
CORPORATION COOPERATIVES– STOCK COMPANY COMMERCIAL JOINT
SAIGON CO.OP STOCK BANK

TOP 50

LPBANK - LOC PHAT STAVIAN GROUP OPPO VIETNAM JOTUN PAINTS MISA JOINT STOCK
COMMERCIAL JOINT STOCK COMPANY
BANK VIETNAM

BIM GROUP MAISON RETAIL MANAGEMENT KING FOOD MARKET JOINT THANH CONG – BIEN HOA AN PHAT HOLDINGS GROUP
INTERNATIONAL STOCK COMPANY JOINT STOCK COMPANY JOINT STOCK COMPANY

DONGTAM GROUP PHAT DAT PHAT DAT REAL ESTATE VIET A COMMERCIAL JOINT VITADAIRY VIETNAM JOINT LOF INTERNATIONAL DAIRY
DEVELOPMENT CORPORATION STOCK BANK (VIETABANK) STOCK COMPANY JOINT STOCK COMPANY

DAT XANH GROUP JOINT AN BINH COMMERCIAL JOINT WIPRO CONSUMER CARE COMMERCIAL JOINT STOCK T&T JOINT STOCK
STOCK COMPANY STOCK BANK VIETNAM BANK PHUONG DONG (OCB) COMPANY

PROSPERITY AND GROWTH SAINT-GOBAIN VIETNAM EDUFIT EDUCATION KIM OANH GROUP SMARTOSC JOINT STOCK
COMMERCIAL JOINT STOCK GROUP COMPANY
COMPANY

SON HA GROUP CONSTRUCTION CORPORATION HOYA LENS VIETNAM JAPFA COMFEED VIETNAM
NO. 1 - JSC (CC1) CO., LTD.

*Results are at: https://careerviet.vn/employerofchoice-winner-2024

77 | Practicing
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Employee Benefits Report 2024: Industry Policies

and Trends (2021–2024)
Employee Benefits – Global Best Practices

To offer a broader perspective and introduce innovative approaches to employee benefits, we’ve compiled a
selection of prominent and widely recognized best practices from around the world. These examples are
grouped into four main industries for readers who wish to explore more deeply.

Banking – Finance Industry

Global banking and financial institutions often design stable and competitive benefit packages to attract and
retain talent in a high-pressure environment. In addition to standard offerings like health insurance and
retirement plans, this sector is increasingly leading the way in expanding parental leave, mental wellness care,
and personal financial support:

Parental and Maternity Leave

JPMorgan Chase, Barclays, and Bank of America
provide 16 weeks of paid leave for both mothers and
fathers; Goldman Sachs extends this to 20 weeks,
giving employees more time to care for their families. Sabbatical Leave
Bank of America offers 4 to 6 weeks of paid
sabbatical, depending on tenure. 5,000 employees
used this benefit in 2023.
Financial Benefits
Ally Financial grants each employee 100 shares of
stock (#OwnIt), turning them into shareholders
and increasing long-term engagement.
Mental Health Support
BNY Mellon expanded its free therapy sessions
from 5 to 12 per year starting in 2024, along with
internal counseling and a network of “Mental
Health Ambassadors.”

In short, the financial industry is prioritizing

comprehensive benefits policies – from family leave,
financial benefits to mental health care – to increase
employee engagement and performance.
 MCG Group | 78

Manufacturing Industry
The manufacturing sector employs a large and physically demanding workforce, so benefits often emphasize
health, safety, and practical support. In 2023, many companies introduced creative initiatives to improve
employee well-being beyond traditional insurance schemes:

Childcare and Dependent Support

Chobani partnered with WeeCare to provide
childcare and eldercare services for full-time
employees, including emergency care credits and
a $1,200 annual subsidy. Workplace Nutrition Programs
Tito’s Handmade Vodka built an on-site farm at its
facility, offering free fresh produce to employees from
74 vegetable beds and 16 hoop houses- improving
Special stage support health and reducing living expenses.
Nvidia launched benefits for female employees
experiencing menopause, offering tailored
counseling services - promoting age-specific
health care. Vocational Training
Companies are expanding apprenticeship programs to
retain workers and attract younger talent. Aon has
invested $30 million in its “Earn and Learn” program, a
learning while working to develop careers program.

Overall, benefits in manufacturing are becoming more practical, compassionate, and long-term-oriented,
ranging from daily life support to training, laying the foundation for stronger employee engagement.

Service Industry (Retail, Restaurant - Hotel)

The service industry (retail, F&B, hospitality) has traditionally offered more limited benefits than office sectors.
However, in response to the “Great Resignation” businesses have had to improve benefits to retain staff.
Between 2022 and 2023, efforts focused on salary increases, flexible hours, and development opportunities.

Salary increase & performance bonus

Many companies have increased base salaries and
shifted from retention to performance-based bonuses,
creating stronger long-term motivation. In 2023, the
hospitality sector recorded historic wage increases to Flexible Work Schedules
stay competitive in the labor market.
While remote work is not always possible, the
service sector has expanded flexible shift rotations,
added floating days off, and experimented with 4-
Family & Education Benefits day work weeks (adopted by some restaurant and
Many service companies have started offering insurance retail chains).
and parental leave. Walmart pioneered in education
support, covering 100% of college tuition for 1.5 million
employees, inspiring similar initiatives at Target, Training & Career Progression
Amazon,.. Retail and hospitality chains have launched internal
management training programs. Starbucks provides a
clear promotion path for baristas, while the agency
Haberman offers $1,000 to employees pursuing
personal passions.

In summary, to adapt to post-pandemic talent pressures, the service industry is rapidly upgrading its benefits,
from financial to emotional support - aiming to create a more attractive and sustainable work environment.
79 | Practicing
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Technology Industry (IT)

The tech sector has long stood out for offering generous and creative benefits to attract high-skilled talent.
Between 2023–2024, even with workforce reductions in some areas, tech companies continue to lead with
flexible and holistic benefit policies.

Flexible Work Arrangements

Many firms maintain hybrid/ remote models. SoFi
allows employees to choose between office,
hybrid, or fully remote work, and introduced the
“SoFridays” initiative to end work early on Unlimited paid time off
Fridays. EPAM Systems also offers flexible work Starting in 2023, Microsoft implemented a
options to attract global talent. “Discretionary Time Off” policy, allowing employees
to take leave without a set limit. This has become a
common trend among companies like Netflix and
LinkedIn, reflecting a culture of trust and
empowerment.
Family & Mental Wellness
Grubhub offers 16 weeks of parental leave and
8 weeks of “baby bonding” leave, along with a
“returnship” program to help employees re- Personal & Community Development
enter the workforce after maternity leave. Zayo SoFi’s “Explorer Program” lets employees rotate
provides 8 free coaching and therapy sessions into new roles for 6 months, 60% of participants
per employee, and designated mental health successfully transitioned into new positions. The
days. company also grants 16 hours of paid volunteer time
annually so employees can give back to the
community.

In summary, the technology industry continues to lead in employee benefits - flexible, personalized, and
focused on holistic employee experience, covering everything from rest, family, and mental health to learning
opportunities and social contribution.
 MCG Group | 80

Benefit Trends 2021–2024 Over Time

The 2021–2024 period will see a marked shift in employee benefits priorities, reflecting the pandemic, labor
market, and economic changes. Here is a year-by-year summary of the landscape and key benefits focuses:

Figure 1: Employee benefits trends 2021 - 2024

2021 2022 2023 2024

Flexibility and Financial and Personalized,
Health and
Talent Retention mental well-being innovative
Safety Amid
post the “Great in the face of benefits (e.g. 4
the Pandemic
Resignation” inflation days work week)

2021: Health and Safety Amid the Pandemic

CONTEXT
In 2021, COVID-19 was still rampant, with prolonged lockdowns in many places. Businesses were forced to
quickly adapt to maintain operations and ensure employee safety. Remote work became the new standard
across many industries. Employees faced the stress of the pandemic while balancing work and family
health concerns.

Notable Benefits
In 2021, employee benefit policies focused on health protection and emergency support during the pandemic.
Companies adjusted their policies to support staff by reimbursing work-from-home expenses, relaxing leave
policies, enabling flexible work arrangements, and providing childcare support when schools were closed.

Many organizations distributed masks, conducted regular COVID testing, and offered special allowances for
frontline workers. Mental health was also prioritized through free psychological counseling, meditation, and
online yoga sessions.

2021 was a year when businesses acted as a lifeline for employees, placing safety and flexibility at the
forefront of HR policies more than ever before.

2022: Flexibility and Talent Retention Post-Pandemic

CONTEXT
As the pandemic came under control, the labor market began to recover. However, the "Great Resignation"
emerged, with many workers seeking more flexible and meaningful jobs. Businesses had to improve their
benefits to retain talent while inflation began to rise.

Notable Benefits
Many emergency policies introduced in 2021, such as hybrid work, mental health support, and flexible
scheduling, were maintained and turned into long-term practices. 91% of companies provided mental
wellness programs. Benefits became more “employee-centric,” including more paid leave, extended family
insurance, signing bonuses, tuition debt assistance, and housing support. The focus shifted to flexibility,
comprehensiveness, and talent retention.
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2023: Comprehensive benefits, balancing costs and needs

CONTEXT
While the labor market became more balanced, inflation and economic risks required businesses to
maintain benefits while tightening budgets. Some industries faced layoffs, while others struggled with
talent shortages.

Notable Benefits
Companies responded with inflation-based salary increases, bonuses, and financial assistance such as debt
counseling and home loans. Mental health remained a top priority. A rising trend was flexible, customizable
benefits, allowing employees to personalize their packages—such as pet insurance, gym memberships, or
caregiver support. This reflected a “smart customization” mindset: meeting actual employee needs while
optimizing cost-efficiency.

2024: Personalization and Innovation in Benefits

CONTEXT
As companies adapt to the “new normal,” Gen Z and Millennials now form the majority of the workforce,
bringing new expectations. Some companies have started experimenting with innovative work models
such as the 4-day work week.

Notable Benefits
Personalization and creativity stand out: employees can select benefits based on personal needs (e.g.,
vacation options, premium insurance). Flexible hours, sabbatical programs, and 4-day work weeks are
becoming attractive perks. Comprehensive well-being now extends beyond physical and mental health to
include financial, social, and environmental wellness. Organizations are beginning to address the needs of
special employee groups (e.g., transgender individuals, persons with disabilities, those in crisis). Technology
and AI are enabling deeper personalization, recommending optimal benefits for each employee.

Welfare in 2024 is aimed at the right person – the right need – the right time. Businesses are not afraid to
innovate, putting employee health and happiness as the foundation of a sustainable post-pandemic culture.
 MCG Group | 82

This report presents a comprehensive overview of employee benefits from 2021 to 2024, tracking both the
timeline and industry-specific strategies. Key takeaways include:

Benefits as a strategic priority Sectoral Similarities and Distinctions

Post-COVID, benefits are no longer a While industries vary in focus—finance

secondary factor - they are now a top values stability, services prioritize flexibility—
priority in HR strategy. Businesses are the gap is narrowing. Benefits once unique to
investing heavily in innovative initiatives tech (e.g., hybrid work, therapy access) are
such as mental health care and 4-day now adopted more widely, while practical
work weeks to boost engagement and perks from manufacturing and services (e.g.,
retain talent. childcare, vocational training) are also
gaining traction across sectors.

Personalization and Flexibility Trends From quick fixes to sustainable solutions

Benefits are increasingly tailored to What started as crisis-driven responses from

individual needs, instead of a “one-size- COVID-19 (e.g., remote work, flexible leave)
fits-all” model. This is thanks to have now become official policies, helping
technology support and a companies build resilient and future-ready
multigenerational workforce with benefit systems.
increasingly diverse expectations.

In short, employee benefits are changing dramatically in both scale and depth, covering all aspects of life –
from finance, health to personal development. Pioneering businesses are turning the workplace into a
comprehensive support ecosystem. For managers, understanding and leading these trends is the key to
building an effective human capital strategy in the modern era.
83 | Practicing ESG in Vietnam

Charity Activities and CSR of Vietnamese

Enterprises in 2023
In 2023, corporate social responsibility (CSR) became a core element in the strategy of many enterprises in
Vietnam. Large companies actively implemented charity programs focusing on education, healthcare, poverty
reduction, and the environment. These activities not only provided material support but also spread human
values, contributing to social welfare and sustainable local development.

The report will analyze the scale, scope, and beneficiaries of CSR programs in 2023, provide typical examples
by industry group, identify trends, evaluate effectiveness – creativity, and propose CSR models that can be
replicated.

Scale, Scope, and Beneficiaries of CSR Programs in 2023

In 2023, Vietnamese enterprises significantly increased their investment in CSR, with hundreds of billions of
VND contributed to social welfare. Vietcombank alone committed 309 billion VND to programs during the year,
with around 50% focused on healthcare, education, and community development. From 2009–2023, this bank
has allocated over 3,200 billion VND to support disadvantaged people. Other businesses also made active
contributions: SeABank over 41 billion VND (2.5 times more than in 2022), PAN Group 9.76 billion VND, and
insurance, retail, and energy groups also spent tens of billions of VND on CSR.

The scope of CSR extended from urban to rural, remote, border, and island areas. Vietcombank supported
poor mountainous districts; FPT built community bridges in the Mekong Delta. Some campaigns had national
scale, such as “Let’s Clean the Sea” by Vietjet, implemented in 28 coastal provinces, or the “Stand Tall
Vietnam Milk Fund” by Vinamilk, which has donated milk to children in all 63 provinces for 16 years.

The main beneficiaries are children, the poor, patients, and local communities. Vinamilk has donated 42
million cartons of milk (~ 200 billion VND) to 500,000 children. The “Heart for Children” program by Viettel
and VTV has sponsored nearly 7,000 heart surgeries for poor children. Many other enterprises such as
Vinamilk, MWG, Masan… have also supported surgeries for heart defects, congenital abnormalities, and
cataracts for disadvantaged people. Banks such as Vietcombank, SeABank, LienVietPostBank have built and
donated thousands of charity houses. People in disaster-hit areas received timely aid – for example, Vietjet
donated 100 billion VND to the COVID-19 vaccine fund and transported relief goods free of charge. Some
companies even extended CSR to their own employees through mental health care and gender equality
programs (such as VPBank).

Overall, CSR in 2023 had a large scale, extended across the country, and brought positive and sustainable
impact to millions of people.
 MCG Group | 84

Typical CSR examples by industry group

Below are outstanding CSR activities in 2023, classified by main industry groups:

Finance – Banking

Domestic banks & Insurance Enterprises: Commercial banks take the lead in CSR budgets.

Vietcombank spent seabank contributed

309 Billion VND for social welfare 41 Billion vnD for social welfare
(education, health care (2.5 times higher
and housing for the poor) than in 2022)

▪ Donated 18 billion VND to purchase social ▪ Built a primary school in Lao Cai.
insurance, health insurance for the ▪ Awarded scholarships to disadvantaged
disadvantaged. children.
▪ Sponsored 12 billion VND to build a commune ▪ Sponsored 35 billion VND to build charity
health station in Thanh Hoa. houses in Central and Northwest provinces.
▪ Sponsored 10 billion VND to build 200 houses ▪ Planted 25,000 trees for reforestation.
for poor households in Soc Trang, along with
many school and clinic in various provinces.

msb supported 2 BILLION VND LPBANK sponsored 65,9 Billion VND

build boarding school for ethnic minorities build secondary school in Hai Duong
and built 22 houses and support 100 solidarity houses
for poor households in Cao Bang for poor households in Hau Giang

In general, the financial sector strongly

bvh gifted
prioritizes education, public healthcare,
Scholarship
14,3 BIllion vnD “Bike Carrying Dreams” and housing for the poor, with some of the
largest budgets.
and hundreds of scholarships nationwide

Foreign insurance and financial Enterprises: Foreign insurance companies are equally active.

Throughout its 15 years of operation in Vietnam, Hanwha

Hanwha life vietnam Life has focused on child protection, promoting
education, and supporting healthcare.
honored
03 times A standout initiative is the “Warm Hug” project, aims to:
consecutively ▪ Raise awareness about child-rearing.

as “Business for the Community” ▪ Award hundreds of scholarships to underprivileged students.

▪ Organize a series of child protection seminars in multiple provinces.

This shows that even non-bank financial institutions are actively contributing to social goals, focusing on
children and public health.
85 | Practicing ESG in Vietnam

RETAIL - TRADE

Technology Retail Enterprises

Mobile World (MWG) stands out with its brand-related CSR initiatives.

▪ AVAKIDS has sponsored 5,5 Billion vnD for 550 Surgeries to treat cleft lip and palate
deformities for children (by the end of the year, 451 surgeries had been performed in 6 provinces).

▪ BACH HOA XANH CHAIN supported nearly 1 BIllion VND for 736 disadvantaged
cases (including children with cerebral palsy, elderly living alone, poor students, and orphans)
through gifts and meal donations.

▪ Employees were encouraged to participate in the charity sports movement UpRace 2023 – 3.727
employees ran over 72,000 km, raising 72,68 million VND for social organizations. This
achievement placed MWG 8th out of 1,705 corporate teams participating (up 6 ranks from 2022).

By combining business activities with creative social responsibility, MWG not only connects
employees but also raises funds to support the community in a unique way.

Consumer retail and Supermarkets Enterprises

Masan Group – Domestic consumer goods and retail group - also implements many
meaningful programs through its member companies.

▪ WinCommerce (the operator WinMart/WinMart+) implemented the “WinMart+ Rural” program to

support around 42,5 tons of rice for over 4.000 household in HCM city và Nghe
An, and gave hundreds of gift bags of necessities to the poor in Binh Duong and Cu Chi.

▪ WinMart Thang Long supermarket (Hanoi) also donated nearly180 million VNd worth of
essential goods for children in difficult circumstances at social protection centers.

▪ The Chinsu brand launched the initiative “One million meals with meat” in collaboration with the
Fund for Underprivileged Students in Remote Areas providing nutritious meals to poor children with

a budget of 10 Billion vnd for the 2023-2024 period.

Other retail chains such as Saigon Co.op, VinMart… (though not detailed here) also regularly run Tet gift-giving
programs for workers and offer discounts on essential goods for low-income individuals – demonstrating that
the retail sector is highly proactive in providing direct support to underprivileged consumers.
 MCG Group | 86

Manufacturing & Processing

Food FMCG Enterprises

Vinamilk – Vietnam’s leading dairy company – is a prime example of consistent

CSR efforts. Since 2008, Vinamilk has initiated the "Stand Tall Vietnam Milk Fund"
with the mission “For every child to have milk every day.” After 16 years, Vinamilk,
together with the Vietnam Children’s Fund, has:

▪ Donated over 42 Million Milk boxes (worth ~200 BIllion VND) to over 500.000 children
at disadvantage across the country.
▪ In 2023 alone, the program continued to provide 1,5 million milk boxes (~ 10 Billion VNd)
for over 17.000 children with special circumstances in 14 provinces.

▪ In addition, Vinamilk has actively contributed to the healthcare sector, sponsoring heart surgery

costs for 34 children with congenital heart disease ( 1,2 Billion VNd during 2019-2023) and
donating equipment and machinery to pediatric hospitals.

▪ In terms of livelihood development, the company purchases 239.000 Tons of fresh milk
annually from farmers, helping thousands of farming households secure stable incomes – a CSR
model that builds sustainable livelihoods directly within the supply chain.

Consumer Goods and Agriculture Enterprises

▪ Sponsored 550 cataract surgeries for the

Masan Consumer Holdings disadvantaged in Kien Giang (over 5 billion VND).

22 Billion VND spent ▪ Cooperating with Nam Phuong Fund to build new rural bridges in Hau
for social welfare in 2023. Giang (costing 5 billion VND for each bridge) - the 7th bridge was
inaugurated in September 2023 to aid safely travel.

contributed ▪ Annually organizes “Loving Tet” and “Mid-Autumn for

Pan group Children” programs in 57 provinces and cities, donating
for
9,76 Billion VND charity ▪
over 10,000 gifts to children.
Award 3 billion VND in scholarships “PAN Lighting up dreams” and
honored as “Nurturing talents” to disadvantaged students with good achievements.
Pioneering company for
▪ Sponsored Tet meals for the poor and built houses for policy beneficiary
the Community 2023
families.

established ▪ Donated 200 million VND to Dong Nai Children's Fund

An CUONG
to help disadvantaged children.
SMILE OF HOPE ▪ Support 200 million VND for poor students in Phu Tho province on
fund to accompany poor children the new school year, donate 2 water filtration systems "Clean water
and visit patients for children" to schools in water-deficient areas in Dong Nai.

This shows that domestic manufacturers are actively contributing back to society, from taking care of
education, health to improving local infrastructure.
87 | Practicing ESG in Vietnam

FDI Manufacturing Enterprises: The group of foreign-invested manufacturing enterprises also implemented
many notable CSR programs, particularly in the fields of electronics and high technology.

Samsung Viet NAM Heineken Viet Nam initiated

organized Solve for Tomorrow Brewing a Better Vietnam
contest to encourage students to apply focus on environmental protection (reducing
technology to solve social problems emissions, saving water) and supporting local
(contributing to promoting STEM education communities (such as providing clean water,
for young people) training skills for youth).

Although not listed in detail in this report, FDI activities have been contributing to spreading good CSR
practices and raising social responsibility standards in the manufacturing industry.

Technology – Information – Telecommunications

Domestic Technology Enterprise

FPT is Vietnam's leading technology corporation with distinct CSR projects.

Through FPT HOPE FUND, FPT has partnered with VnExpress to:
▪ Built 350 concrete bridges in remote areas of the Mekong Delta to replace makeshift wooden
bridges, ensuring safe travel for local residents and children. This project significantly contributes
to the new rural development program, facilitates trade, and helps tens of thousands of students
commute to school more conveniently.

▪ Established Hope School – a boarding school in Da Nang that takes in and educates over 300
children who lost their parents due to the COVID-19 pandemic across the country. This unique
and humane initiative has helped orphans stabilize their lives and continue their education in a
caring environment. FPT's Hope School proudly received an international sustainable
development award, winning the title of “Most Outstanding Global Community Initiative” at the
Global CSR & ESG Summit 2023.

In addition, FPT also funded the establishment of 35 digital libraries (with tablets and digital
learning content) for nearly 20,000 students in disadvantaged areas, helping them access modern
knowledge. It’s showing that FPT is leveraging its technological strengths to support education and
bridge the digital divide for underprivileged youth.
 MCG Group | 88

Internet and Software Enterprises

VNG Corporation (Vietnam’s tech unicorn) was awarded “Vietnam’s Most Innovative

Social Impact Enterprise” by Global Business Review in 2023.

▪ VNG stood out with its CSR approach tied closely to its tech platform and sports movement.

Starting as an internal activity in 2017, VNG developed the charity running event UpRace into a
national-scale annual initiative, attracting runners from both inside and outside the country. From

2018 - 2022, UpRace recorded over 16,5 Million km RAN and raised over 25 Billion VND for
charities such as Newborns Vietnam, Operation Smile, Saigon Children’s Charity, VietSeeds, etc.

▪ Contributed 28 Billion VND to the Government’s COVID-19 Prevention Fund, while launching
initiatives to connect donors via ZaloPay e-wallet and Zalo social network to raise funds for people

in need. Notably, “Saigon Heroes” project of VNG raised 32,5 billion VND, supported 50
COVID-19 hospitals in Ho Chi Minh City, providing 20 HFNC ventilators and hundreds of
thousands of protective suits, face masks, and meals for frontline doctors and nurses.

▪ The company also partnered with NGOs like Passerelles Numériques, CyberKid Vietnam, etc., to
offer digital skills training for disadvantaged youth and to protect children from online risks.

With its continuous and creative efforts in community engagement, VNG has made a distinctive CSR
mark by harmoniously blending technology, sports, and charity.

Telecommunications and Military technology Enterprises

Viettel Group – the largest telecommunications enterprise – has for many years
consistently implemented nationwide social programs. A prime example is the “Heart for Children”
(program (in collaboration with the Vietnamese Heart Foundation – VTV) which provides free heart
surgeries for poor children with congenital heart disease. After 15 years, the program has

successfully funded surgeries for nearly 7.000 child patients and conducted heart screenings
for over 160.000 children across the country.

Viettel also launched the “Internet for Schools” program, installing free internet for thousands of
schools in remote and mountainous areas, helping bring digital knowledge to rural students.

The “For children to school” granted scholarships to 37.000 Poor students annually across 37
disadvantaged provinces, along with many other gratitude and social responsibility initiatives.

It can be said that Vietnam’s technology – telecommunications industry is using its core products
and services (such as digital platforms and telecom infrastructure) to create community value,
helping to close the development gap and enhance public knowledge.
89 | Practicing ESG in Vietnam

Energy – Infrastructure – Transport

Oil & Energy Enterprises

PV Drilling Corporation (oil & gas drilling services) focuses on charitable activities in the
localities where the company operates.

▪ August 2023: in response to the fundraising walk for Agent Orange victims in Ho Chi Minh

City, 50 employee participated and contributed100 million VND.

▪ November 2023: donated 30 gifts to poor households in Ca Mau for a local marathon event.

In addition, PV Drilling emphasizes local workforce development when expanding abroad: the
company implements a policy of recruiting Vietnamese personnel in markets such as Malaysia,
Thailand, and Brunei to replace foreign workers, creating job opportunities for Vietnamese engineers.

GIALAI Electricity (GEC) spent ▪ Sponsored orphans affected by COVID-19

▪ Gifted Tet gifts to poor households in Ben Tre, Soc Trang
to carry out a series of
2 Billionn VND charitable programs:
▪ Awarded scholarships to diligent students in Gia Lai...

From 2012 to 2023, GEC has contributed around 22 billion VND to community support, and also
contributed funds for concreting rural roads (~4 billion from 2019 to present) in the provinces where the
factory operates. These silent contributions significantly improve infrastructure and life in remote areas.

Oil & Energy Enterprises

Tasco Joint Stock Company (infrastructure investment, BOT) implements many

programs aimed for disadvantaged children and community health.

▪ In 2023, Tasco committed to a long-term sponsorship for 3 orphaned children by COVID-19

via Thanh Nien Newspaper’s program “Accompanying Children Through Life”.

▪ Committed to supporting 144 million VND in 2 years for children in Ho Chi Minh City.
▪ Partnered with the National Institute of Hematology & Blood Transfusion for the blood donation

event “Red Journey – Loving Red Drops 2023”, collecting 119 Units to for patients in need.
▪ Mid-Autumn Festival: held the “Moonlight Stories” event at Thanh Tam Shelter (Hanoi), raising 66
Million VND in cash and gifts (milk, mooncakes, warm blankets, etc.) for orphaned and disabled
children at the care facility.

In addition, Tasco’s internal charity fund “Because We Need Each Other”, contributed by employees,
regularly runs activities such as cooking “Compassionate Meals” for poor patients, supporting Agent
Orange victims, and assisting frontline forces during the pandemic. These practical efforts not only
support the community but also help cultivate a caring corporate culture within the company.
 MCG Group | 90

Aviation enterprises: The aviation industry is also pioneering in innovative CSR initiatives.

Vietjet Air has actively implemented environmental protection activities:

▪ Since 2018: Vietjet has collaborated with the Vietnam Youth Union to organize the "Let’s clean the

sea" campaign across all 28 coastal provinces cities, collecting waste and raising people's
awareness of ocean protection.

▪ The airline also supported the Government’s initiative to plant 1 billion trees by funding the

planting of 15 Million trees from 2021 to 2025 in Phu Yen.

▪ Notably, starting from October 2023, Vietjet launched the "Fly Green – Green the Earth" program:

for each ticket sold, the airline contributes 5.000 VND to an environmental fund to plant trees and
conserve nature. This is a highly creative CSR model tied directly to its core business, turning every
passenger into a "green ambassador" accompanying the airline.

▪ On the social charity front, Vietjet (together with Sovico Group) donated 100 billion vnd to the

COVID-19 vaccine fund, provided 200 Ventilators, 20 Ambulances and various medical
equipment to hospitals during the pandemic.

▪ The airline also offered free transportation of 200 tons of relief goods for flood-affected people
in Central Vietnam and supported international humanitarian flights (to Indonesia in 2018, and
Turkey & Syria in 2023) with contributions worth billions of VND.

Vietjet’s prompt and timely contributions in emergencies clearly demonstrate the social
responsibility of this dynamic private airline.

In summary, across every industry, we have seen standout examples of CSR over the past year. Despite
differences in business sectors, a shared goal among these companies is sustainable community
development, aligning corporate interests with social benefits, thereby enhancing brand image and value.
91 | Practicing ESG in Vietnam

General trends in CSR activities in Vietnam in recent years

Recent CSR activities of Vietnamese enterprises clearly demonstrate a trend towards national sustainable
development, focusing on four main pillars:

Education & young generation development

Education is the top priority in CSR, with many sponsoring the construction of a K–12 school. Many
scholarship programs, school construction projects, businesses also collaborate with local authorities
library donations, and skill training initiatives. through the "Nationwide Effort to Build New Rural
Notable examples include scholarship funds by Bảo Areas" program, contributing to public education and
Việt, PAN, and Hanwha Life; FPT building schools for the training of future human resources.
orphans and donating digital libraries; LPBank

Healthcare & Public Health

CSR in healthcare is expanded: sponsoring medical Masan, and MWG have funded heart and congenital
stations, medical equipment; free medical defect surgeries for disadvantaged individuals.
examination and treatment; supporting humanitarian Community events such as Bao Viet’s national yoga
surgery. Vietcombank, BIDV, and VietinBank have day attracted thousands, helping raise public
built medical stations; Novartis and Standard awareness on health and wellness.
Chartered have sponsored eye surgeries; Vinamilk,

Social Welfare & Support for Vulnerable Groups

Companies are actively building charity houses, with disabilities (such as "Walking with You Through
donating social and health insurance, and supporting Life" and "Embracing Arms of Love") are increasingly
livelihoods. Vietcombank donated 6,000 social widespread. Businesses also work closely with the
insurance books; Vinamilk guaranteed purchasing of government in disaster and pandemic relief, as seen
farm produce; PAN and Loc Troi provided agricultural in the 2023 Hanoi mini apartment fire and the COVID-
training. Programs supporting orphans and people 19 Vaccine Fund.

Environmental Protection & Sustainable Development

Environmental-focused CSR is gaining momentum, retail enterprises collect used batteries and plastic
through tree-planting, emission reduction, and the bags, and implement energy-saving technologies.
development of “green business” models. PAN Many companies are also engaging in environmental
Group targets planting 1 million trees by 2030; policy advocacy and aiming for international
SeABank launched the “Let’s Go Green” campaign; standards like ISO 14001 and LEED.

CSR today is no longer just charity, it is integrated into the enterprise’s ESG strategy. Many companies pledge
to allocate 1–2% of post-tax profits to community programs, disclose CSR data transparently in sustainability
reports, and actively participate in rankings like CSI 100 and VNSI. Leading names such as Vietcombank, FPT,
Vinamilk, and PAN were at the forefront of ESG performance in 2023.

In summary, CSR in Vietnam is becoming more professional and impactful, playing a vital role in the
sustainable development strategies of enterprises. Education, healthcare, social welfare, and the
environment remain the key priorities, creating long-term value for both businesses and society.
 MCG Group | 92

Evaluation of Effectiveness and Creativity in CSR Models

RELATIVE EFFECTIVENESS
CSR programs in 2023 delivered tangible results: hundreds of thousands of children received nutritional
support, tens of thousands of students were awarded scholarships, and thousands of families gained new
housing. Many projects, such as schools and community bridges, created long-term impact. CSR also
helped companies strengthen their brand image and reputation, building community trust - as seen in
industry leaders like Vinamilk, Vietcombank, and FPT with standout community efforts.

However, the level of effectiveness varies across models. Programs with long-term orientation and close
cooperation with social organizations or government agencies tend to be more sustainable (e.g., Vinamilk
with the National Fund for Vietnamese Children, VNG with the Red Cross). In contrast, short-term charity
events or one-off activities struggle to create lasting impact without continuity.

creativity: 2023 saw several innovative CSR initiatives, such as:

Digital technology applications

▪ VNG: UpRace running challenge

turns every kilometer into donations
▪ ZaloPay: fundraising platform
▪ Vietjet & Sovico launched
“Healthy Vietnam” to mobilize 8
trillion VND for the Vaccine Fund

digital transformation is expanding CSR scale.

Tied to product/service

“Buy to support” models like Vietjet’s

“Fly Green” campaign (5,000 VND
from each ticket goes to the
environment) tightly link CSR with the
customer experience -increasing
engagement and connection.
Engaging employees

▪ VNG: team-building events

combined with volunteer work
▪ Hanwha Life: reality show
campaign focused on child
protection

Embedding CSR into company culture gives

employees a sense of social contribution. Cross-sector and multilateral
collaboration
Programs such as “Continue your
life with me” (Tasco, Sovico, Thanh
Nien newspaper, local authorities)
or “Let’s clean up the ocean” by
Vietjet and civic society groups,
show a trend toward collaborative
CSR for broader impact.

CSR in Vietnam is becoming increasingly effective and innovative. Companies are moving beyond
traditional donations and embedding social responsibility into long-term strategies, mobilizing diverse
stakeholders, amplifying impact, and demonstrating innovation beyond core business operations.
93 | Practicing ESG in Vietnam

Proposed Scalable & Effective CSR Models

01 Scholarship and Mentorship Programs for Underprivileged Students

Models like “Nurturing Young Talents” (Bao Viet) and “PAN Scholarship” have proven to be both effective and
sustainable. Businesses provide annual scholarships and assign employees as mentors to guide locality
students - supporting education while fostering community engagement.

02 Vocational Training Integrated with Local Hiring

Partnerships between businesses and vocational schools to train and hire local youth help address
employment at the grassroots level. BaF’s model with animal husbandry students is a prime example, which
can be replicated in sectors such as manufacturing, processing, and tourism.

03 Boarding Schools and Shelters Sponsored by Corporates

Inspired by FPT’s Hope School, large enterprises can build or sponsor schools, children’s villages, and
vocational centers for vulnerable groups. This CSR model is highly humane, can operate sustainably, and
helps ease the burden on the government.

04 CSR Integrated into Products/Services

Vietjet’s “Fly Green” campaign (01 VMB contributes 5,000 VND to an environmental fund) is a typical example.
Companies can integrate CSR into customer experiences such as “1 product = 1 tree,” or offer an “add
donation” option at online checkout, effectively raising funds while spreading positive messaging.

05 Industry or Regional CSR Alliances

Collaborating across businesses to launch large-scale CSR projects - such as co-funding hospitals or schools
in industrial zones, or establishing emergency relief funds, helps reduce costs, amplify social impact, and
reinforces collective responsibility.

06 Internal Volunteering and CSR Day

Companies can organize internal volunteering programs (like SeABank’s “Citizen Week”) or host a company-
wide “CSR Day” with community-focused activities. This nurtures a culture of CSR from within and can
mobilize millions of volunteer hours annually.

07 CSR-Driven Innovation and Social Entrepreneurship

Businesses can support startups in solving social issues by funding investments or incubating ideas (free
education apps or clean energy solutions). This turns CSR into a springboard for innovation and business
collaboration with greater social impact.

To drive lasting impact, CSR should be strategic, innovative, and scalable. When businesses act
collectively, CSR transforms from isolated initiatives into a national movement that advances
sustainability and aligns economic growth with social progress.
 MCG Group | 94

CSR at Vinamilk: Committed to Responsibility,

Sustainable for the Future
During 2022–2024, Vietnam Dairy Products Joint Stock Company (Vinamilk) has implemented a wide range of
outstanding CSR initiatives, making positive contributions to the community. Vinamilk consistently allocates
significant resources (~77–81.5 billion VND annually) to community and sustainability programs. As a result,
millions of people have benefited from Vinamilk’s practical and impactful CSR activities.

Flagship CSR Initiatives (2022–2024)

“Reaching Vietnam’s Heights” Milk Fund

Vinamilk’s core CSR initiative aims to provide free 200 billion VND. The program contributes to
milk to disadvantaged children. As of 2023, the fund improving child nutrition and health, while raising
has donated over 42 million cartons of nutritious public awareness about the importance of milk in
milk to more than 500,000 children across all 63 early childhood development.
provinces and cities, with a total value of around

Medical Support and Heart Surgery

Vinamilk actively supports surgical costs for and eye surgeries. In 2023 alone, Vinamilk donated
underprivileged patients, especially children with an additional 500 million VND to the MD1World
congenital heart defects. From 1995 to 2022, the heart surgery program, successfully supporting
company sponsored around 7.2 billion VND, surgeries for 34 children with congenital heart
helping nearly 1,300 patients undergo free heart disease.

Elderly Health Care

Targeting senior citizens, Vinamilk launched the ups for tens of thousands of elderly people in 10
“Eat Well, Sleep Well, Live Well” program in 2023 in provinces and cities, alongside nutritional
collaboration with the Vietnam Elderly Association. consultations and appropriate dairy product
This nationwide series offered free health check- donations to help improve senior health.

Disaster and Epidemic Relief

Vinamilk promptly provides support to provinces. During the COVID-19 pandemic,

communities affected by natural disasters. For Vinamilk also contributed milk and medical
instance, in 2022, the company donated over equipment to frontline workers. These actions help
155,000 nutritional products (worth more than 1 disaster- and epidemic-hit communities quickly
billion VND) to help flood-stricken central stabilize their lives.

Environmental Protection – Toward Net Zero

Vinamilk is a pioneer in environmental carbon sink estimated to absorb 17,000–20,000

sustainability initiatives. In 2023, the company tons of carbon (equivalent to 62,000–73,000 tons of
launched the “Vinamilk Pathways to Dairy Net Zero CO₂). Previously, Vinamilk participated in the “1
2050” program with the “Net Zero Forest” project Million Trees for Vietnam” Fund, planting over 1.1
in Cà Mau (a 25-hectare mangrove forest). After six million trees across 20 provinces, significantly
years, the project aims to regenerate the area with advancing its goal of carbon neutrality in
100,000–250,000 mangrove trees, creating a manufacturing operations.
95 | ESG
Practicing
practices
ESGininVietnam
Vietnam

Investment and Social Impact

Vinamilk consistently maintains a large annual CSR budget (77 billion VND in 2022 and 81.5 billion VND in
2023 for community activities). This stable investment has resulted in notable, measurable social impacts:

Improving Child Nutrition

Through the “Reaching Vietnam’s Heights” Milk contributing to improved physical development and
Fund and the Milk for School Program, hundreds of long-term health. Notably, Vinamilk’s 15-year
thousands of children across the country have involvement in the Milk for School Program has
gained access to regular milk consumption, benefited over 4 million students, with the company
providing over 54 billion VND in direct support.

Enhancing Public Health

The free heart surgeries sponsored by Vinamilk elderly have helped tens of thousands of seniors
have saved the lives of many children with detect diseases early and receive nutritional and
congenital heart disease, giving them a chance to medical advice, improving quality of life for an aging
live healthy lives. Free health check-ups for the population.

Timely Relief in Difficult Times

During floods and disease outbreaks, affected necessities) helping reduce hardship and restore
communities have received essential aid from morale. The company’s compassionate and timely
Vinamilk (including food, milk, and other actions have left a strong positive impression on the
community.

Sustainable Environmental Protection

Vinamilk continues to show strong environmental their commitment to long-term sustainability while
responsibility through projects like reforestation, supporting local ecosystems and community
carbon absorption, and climate resilience, ensuring wellbeing.
 MCG Group | 96
MCG Group | 96

Outstanding CSR & ESG Awards (2021–2024)

Vinamilk’s CSR and sustainability efforts have earned it several prestigious regional and international awards:

Asia Corporate Excellence & Sustainability (ACES) Awards 2021

Vinamilk was named “Asia’s Most Socially million children over 15 years, especially during the
Responsible Company 2021” - the highest honor in COVID-19. The organizing committee praised
the community category of ACES. The award Vinamilk for embedding community commitment
recognized outstanding initiatives such as the into its core business strategy, not just as a social
“Reaching Vietnam’s Heights” Milk Fund and the obligation.
Milk for School Program, which benefited nearly 4

Human Act Prize 2023

This is a community action award organized by Nan Pathways to Dairy Net Zero 2050”, and was also
Dan Newspaper in collaboration with ministries and honored in the “Persevering Project” category for
agencies. Vinamilk was the only enterprise to win 2 the “Reaching Vietnam’s Heights” Milk Fund. This is
major awards at the Human Act Prize 2023. a worthy recognition for Vinamilk’s pioneering
Specifically, Vinamilk won the Human Act Prize (the environmental initiatives and persistent efforts for
highest category) for the program “Vinamilk children over 16 years.

Top 5 most sustainable dairy brands in the world

Vinamilk was ranked among the Top 5 most names in the global dairy industry. Vinamilk has
sustainable dairy brands globally and No. 1 in also been listed for many consecutive years in the
Vietnam for sustainable dairy industry Top 10 Sustainable Businesses in Vietnam (CSI
development. Vinamilk’s sustainability score was Program), showing its pioneering role in ESG
even ranked the highest, surpassing many big domestically.

Vinamilk – a model of sustainable enterprise

By simultaneously pursuing business goals and than just an obligation” - this has become a
social responsibility, Vinamilk has become a “beacon” of inspiration, guiding the company’s
typical model of sustainable enterprise in Vietnam. actions and decisions. Consistent sustainable
The company always harmonizes business growth development has helped Vinamilk maintain its
with contributions to the community and position as the leading dairy enterprise and spread
environmental protection. As stated by the ACES profound human and sustainable values in
organizers, Vinamilk considers community Vietnamese society.
commitment “as a sound business decision rather

In conclusion, the 2022–2024 period marks Vinamilk’s acceleration on the CSR and ESG journey. From
caring for child nutrition, elderly health, assisting vulnerable people to environmental protection and
aiming for Net Zero, Vinamilk has affirmed its role as a pioneering sustainable enterprise, deserving to be
a source of pride and a model for the Vietnamese business community.
97 | Practicing ESG in Vietnam

ESG Governance Structure: Stage of Development

& Current Challenges
Vietnamese enterprises are gradually establishing by 2022, up to 43% of enterprises had not
ESG governance structures, but the level of considered ESG training for their BoD and
maturity remains modest and faces many management. The role of Chief Sustainability
challenges. According to a 2022 PwC survey, nearly Officer (CSO) is also rare - only about 22% of
half (49%) of businesses reported having an official enterprises have this position, although research
ESG governance structure, but only 24% actually shows that nearly all top ESG-rated companies
have a comprehensive framework with clear have an equivalent role. Lack of ESG knowledge and
commitments, roles, and responsibilities. About a skills remains a major barrier: around 60–67% of
quarter of enterprises have no ESG governance businesses (especially SMEs) believe the lack of
mechanism at all, revealing a significant gap in guidance and understanding is the main reason
integrating ESG into corporate governance. they have not advanced in ESG. In fact, 71% of
Vietnamese companies are still at the exploration
A key challenge lies in the limited ESG capabilities
stage or have not begun ESG data integration, and
of Boards of Directors (BoD). Only 29% of
about 70% either have no ESG report or only very
Vietnamese businesses expressed confidence in
limited reporting. These figures reflect that ESG
their BoD’s ESG knowledge - much lower than the
governance structures in most enterprises are still
global average (~45). In addition, there are almost
in their infancy and need improvement in both
no ESG capacity-building programs for leadership:
framework and execution capabilities.

Proposed Effective and Scalable CSR Models

The Board of Directors (BoD) plays a key role in embedding ESG into corporate strategy and operations. Many
BoDs have been closely involved in setting sustainability goals, monitoring implementation, and ensuring
transparency. Specifically, in some leading enterprises:

PNJ

An ESG Committee has been established under the ESG indicators into KPIs at PNJ. The committee
BoD to improve governance frameworks and oversee works closely with the Executive Board to measure
the implementation of sustainability principles. This and improve internal environmental and social
committee leads internal training sessions, ensures indicators - demonstrating PNJ’s commitment to
compliance with laws and international practices, enhancing governance effectiveness and
consults stakeholders, and proposes integrating sustainable development.

Vietjet

The BoD directs strategy and closely supervises risks/opportunities the company faces. The BoD
sustainability programs. In 2023, Vietjet’s BoD will also maintains quarterly meetings (4 per year) to
continue to direct the Executive Board to implement evaluate the adoption of good governance practices
ESG initiatives. The BoD and Executive Board and improve corporate governance quality. Thanks
regularly monitor progress on climate-related goals, to this, Vietjet has built a solid foundation for
while identifying and assessing climate business growth, strengthened shareholder trust,
and improved access to and allocation of capital.
 MCG Group | 98

Century Synthetic Fiber Corporation

The Board of Directors (BoD) at STK plays a central person or by written consultation) to address
role in defining and guiding the company’s matters within its authority. The BoD also assigns
sustainability strategy. Goals are translated into the Executive Board and the Investor Relations
KPIs for departments and closely monitored to department to prepare the Sustainability Report in
ensure effective implementation. The BoD meets accordance with international practices and
quarterly to review reports from the Executive Board Vietnamese regulations, ensuring the report reflects
covering economic, social, and environmental the company’s actual conditions. ESG performance
matters, thereby assessing achievements and is reviewed monthly, quarterly, and annually,
proposing improvement directions for the next allowing for timely improvements (such as
phase. The monitoring frequency is very high: in 2023 increasing recycled fiber revenue share to 49.5%
alone, STK’s BoD held a total of 31 meetings (in and installing rooftop solar panels to cut emissions).

TTC Land

The BoD of SCR sets a strategy of “customer- foundation toward economic prosperity,
centricity” linked to sustainable development and environmental sustainability, and social equity. In
assigns the CEO the responsibility to proactively 2023, the BoD of SCR held 11 meetings to issue
implement and ensure the effectiveness of ESG resolutions, supervise the implementation of tasks
policies across the company. The goal is to create assigned by the General Meeting of Shareholders,
the best value for all stakeholders and build a solid and approve key company matters.

Masan Group

In 2023, Masan Group established a group-level ESG ESG Heads will be responsible for implementing
Committee to ensure sustainable development strategic ESG projects such as reducing greenhouse
activities align with the overall strategy. The gas emissions, sourcing responsibly, improving
Committee Chair is a senior executive (Head of nutrition and health, conserving water, and recycling
Manufacturing, Engineering & Technology), along waste. Masan aims to engage 100% of relevant
with members who are executive directors and employees in ESG practices by 2025, thereby
leaders of business units. At the same time, each integrating ESG into all group activities for the 2025–
member company of Masan also appointed an ESG 2030 period. These moves affirm Masan’s
Head to coordinate the implementation of commitment to building an effective ESG
sustainability initiatives between the group and its governance structure to implement its long-term
subsidiaries. In 2024, Masan’s ESG Committee and sustainability strategy.

These examples show that the BoDs of leading enterprises in Vietnam have begun to actively participate in
ESG integration. They establish dedicated committees, hold regular meetings to monitor ESG KPIs, set
strategic directions, and ensure the entire organization adheres to sustainable development goals.
However, this is still mainly seen in large enterprises; the participation rate of BoDs in small and medium-
sized enterprises remains very low (only about 25% of small businesses have BoDs involved in ESG,
compared to 40% in large companies).
99 | Practicing ESG in Vietnam

Transparency in ESG Disclosure

Transparency in ESG disclosure remains a major framework is dispersed across various legal
challenge for Vietnamese enterprises. Currently, documents concerning environmental protection,
there is no standardized ESG reporting guideline, labor, and corporate governance. For example, the
resulting in disclosed data often being inconsistent 2020 Environmental Protection Law strictly
and incomplete, even among listed companies. regulates corporate responsibilities for pollution
67% of businesses believe that the lack of clear control and waste management. On the social
regulations is the main barrier to ESG front, the Labor Code mandates labor rights,
implementation. In other words, most companies workplace safety, and gender equality. In terms of
are eager for specific guidance from regulatory governance, the Enterprise Law and regulations on
authorities to create a level playing field and a corporate governance set standards for company
consistent roadmap for ESG practice. structure, Board responsibilities, shareholder
rights, and transparency in information disclosure.
In reality, the government has begun issuing
In addition, the State Securities Commission issued
requirements to standardize ESG disclosure.
the 2019 Corporate Governance Code of Best
Notably, the Ministry of Finance issued Circular
Practices (non-mandatory), encouraging public
96/2020/TT-BTC (November 16, 2020), guiding
companies to enhance transparency and ethics in
information disclosure on the stock market, which
governance, including detailed non-financial
requires public companies to disclose certain ESG-
disclosures (environmental and social) aligned with
related content. Specifically, from the 2021 fiscal
international standards such as GRI. Overall, the
year, listed companies must include an ESG Report
policy framework is gradually forming, but
section in their Annual Reports, covering indicators
enterprises still need more concrete guidance on
on greenhouse gas emissions, energy and water
ESG reporting and green finance regulations for
consumption, compliance with environmental
effective implementation.
protection laws, labor policies, community
responsibilities, and community development Many businesses have voiced the need for the
activities. Additionally, the BoD must present an government to issue clearer and more unified ESG
assessment report on the company’s policies to ensure fairness across industries and
environmental and social responsibilities and set help companies define a common reporting
sustainable development goals in environmental, standard. Currently, although Vietnam has
social, and community aspects. This is an individual regulations on renewable energy,
important step in integrating ESG into mandatory environmental protection, and corporate
reporting, enhancing corporate transparency for governance, the gap in ESG reporting guidance
shareholders and the public. persists. Promptly finalizing the ESG disclosure
framework and enforcement measures will help
Rather than issuing a standalone ESG law, Vietnam
enterprises improve transparency, avoid
has chosen to integrate ESG requirements into
“greenwashing,” and build investor confidence in
existing legislation. The domestic ESG legal
sustainable development.
 MCG Group | 100

Third-Party Verification of ESG Information

Hiring third parties to independently verify ESG data is gaining attention among major companies in Vietnam to
improve the credibility and transparency of their reports. Although the implementation rate remains low (only
36% of Vietnamese firms audit or verify ESG data, compared to the global average of 58%), some pioneers
have proactively invited independent audit firms to review key ESG data.

01 VINAMILK
Vinamilk, Vietnam’s leading dairy followed ISAE 3000 (Revised) – the
company, has for many years hired widely used international standard
PwC Vietnam to conduct limited for non-financial assurance – and
independent assurance of its provided its opinion directly in the
Sustainability Reports. The 2023 report. This confirms that
report was again reviewed by PwC, Vinamilk’s ESG data was verified by
with expanded scope covering key a third party using global
environmental indicators. PwC standards.

ACB Bank 02

ACB is the first bank in Vietnam to improvement in transparency. The

have both environmental and indicators assured by KPMG
social indicators in its include greenhouse gas emissions,
sustainability report independently occupational safety, etc., thereby
assured. ACB’s 2023 Sustainability providing shareholders and
Report (following GRI standards) investors with a comprehensive
includes 22 ESG indicators audited and verified view of the bank’s
by KPMG, an increase of 16 environmental and social
indicators compared to 2022. performance. This is a key step in
Expanding the audit scope from 6 helping ACB assert its leadership in
(2022) to 22 (2023) indicators ESG within the financial sector.
demonstrates a significant
101 | Practicing ESG in Vietnam

03 masan
In 2023, Masan Group (through its in compliance with ethical and
subsidiary Masan Consumer) professional standards,
invited Ernst & Young (EY) Vietnam (specifically ISAE 3000). This
to conduct limited independent enabled Masan to receive
assurance of selected non- independent verification of the
financial information in its reliability of important ESG
Sustainability Report. EY assessed information in the report - a crucial
the selected sustainability data step in building trust among
and provided an assurance opinion investors and the public.

In terms of standards, most ESG assurance GHG inventories). Additionally, the AA1000AS
activities currently follow ISAE 3000 (Revised) – the standard is internationally recognized and often
most commonly used standard by audit firms (Big used by ESG consulting organizations in specific
4) for ESG report assurance. Some specialized contexts. Choosing the appropriate standard and
reports, such as those on greenhouse gas assurance provider helps ensure the objectivity and
emissions, may be verified under ISO 14064-3 (for credibility of the ESG information disclosed by a
business.

Overall, the trend of engaging third parties to verify ESG data is gradually taking shape in Vietnam. This
reflects the growing need to enhance the credibility of sustainability reports, especially as investors and
partners increasingly focus on the authenticity of ESG commitments. In the future, as ESG reporting
standards become more stringent, independent assurance may become a common practice, similar to
financial audits.
 MCG Group | 102

Opportunities and Challenges in ESG Governance

in Vietnam
Practicing ESG, especially the governance (G) technology, management systems, consulting
aspect, presents both opportunities and challenges services). They also struggle to choose and apply
for Vietnamese enterprises. On the opportunity suitable ESG standards, due to the abundance of
side, integrating ESG promises improved frameworks (CSI, GRI, SASB, etc.). This complexity
operational efficiency and enhanced corporate causes many SMEs to lag behind, widening the gap
reputation. Companies that focus on ESG often see with large enterprises. Statistics show that only
better operational performance, optimized 25% of small companies have board-level
resource use, and reduced legal risks. At the same involvement in ESG, compared to 40% of large
time, transparency and a commitment to companies. This highlights the disparity in ESG
sustainability help elevate brand value, attract awareness and practice by enterprise size..
conscious consumers, and appeal to long-term
Moreover, the evolving ESG regulatory landscape
investors. Research shows that companies with
poses compliance challenges. New regulations
strong ESG performance are seen as lower risk and
(such as Circular 96/2020/TT-BTC and the 2020
therefore have better access to investment capital.
Environmental Protection Law) require businesses
In fact, in the stock market, good corporate
to disclose more ESG data, meaning those
governance (G) has a clearly positive impact on
unprepared with reporting systems and faces non-
short-term stock prices and forms the basis for
compliance risk. Keeping up with ESG trends and
long-term sustainable growth. These drivers
regulation (domestic and international) requires
demonstrate that ESG is not merely a compliance
companies to continuously update their knowledge
requirement but also a strategic opportunity for
and adopt a long-term vision for risk management.
Vietnamese businesses to grow sustainably and
compete globally. In summary, ESG governance in Vietnam is still at
an early stage and demands concerted efforts from
However, enterprises also face significant
both businesses and policymakers. Enterprises
challenges in implementing ESG governance. First
must proactively build governance capacity, train
is the lack of knowledge and expertise. Surveys
their teams on ESG, and embed ESG as part of their
show that up to 61% of businesses cite lack of
long-term strategy for sustainable value creation.
knowledge as a key barrier, and 71% admit that
On the government side, issuing clear guidance,
weak reporting skills hinder their ability to build
support programs (especially for SMEs), and
quality ESG reports. This limits the effectiveness of
incentives for transparency will be key to driving
board and executive involvement in ESG programs.
ESG adoption. With increasing international
Current ESG training for personnel, both executives
integration and pressure from agreements like
and those in charge, is inadequate, especially for
EVFTA and COP26, Vietnamese businesses can no
small and medium-sized enterprises (SMEs).
longer remain on the sidelines. Turning challenges
Additionally, many SMEs still see ESG as a into opportunities and improving governance (G)
compliance burden rather than an opportunity. will help Vietnamese companies boost
Smaller companies often face financial and competitiveness and grow in harmony with society
technological constraints, making them reluctant to and the environment in the years ahead.
incur high ESG costs (e.g., investment in clean
103 | ESG practices in Vietnam

CHAPTER

04 Challenges in ESG reporting

 MCG Group | 104

Sustainability reporting challenges for enterprises

(2023–2024)
In 2023–2024, many listed companies in Vietnam increasingly prioritized publishing sustainability reports
(ESG). However, the implementation process still faces numerous challenges. Based on corporate annual
reports, sustainability disclosures, and related studies, four key challenge areas have been identified:

Lack of clear The legal framework and guidelines for listed companies. Additionally,
ESG regulations ESG reporting in Vietnam are currently Vietnam does not yet have a
incomplete. Many businesses report comprehensive legal framework for
the absence of specific government ESG, making it difficult for businesses
mandates or detailed guidance for to determine which standards to
ESG disclosures, resulting in confusion follow, leading to inconsistent
and inconsistency during implementation. For example, the EU’s
implementation. In reality, existing carbon tax mechanism (CBAM)
regulations only stop at providing requires exporters to report emissions
guidance on the collection of certain periodically, but due to the lack of
related information (such as emission domestic guidelines and roadmap,
indicators), but lack comprehensive very few Vietnamese enterprises were
standards on report structure, able to submit their reports on time for
methodologies, or penalties for non- Q4/2023 and Q1/2024 as required by
compliance. According to PwC CBAM. This highlights the regulatory
Vietnam, “this regulatory gap” is gap that is hindering businesses from
among the most significant barriers for fully fulfilling their ESG responsibilities.

Constraints in Implementing sustainability initiatives growth in Vietnam primarily relies on

financial requires substantial investment the state budget and focuses on
capacity and capital and operational costs, while environmental projects, resulting in
resources
many enterprises, particularly SMEs, minimal direct support for businesses
face limited resources. A large-scale to transition toward sustainable
survey of 2,734 businesses revealed business models. Consequently, many
that lack of capital is among the top enterprises hesitate to engage in ESG
three challenges on the path toward reporting due to concerns about short-
green transformation. Many small term costs and profit impacts. This is
enterprises acknowledged that the especially true for small and medium-
costs of sustainable business sized enterprises, who often show
projects are prohibitively high, while "little enthusiasm" for ESG due to a
external financial support and lack of capital and insufficient
incentives remain very limited. In preferential support to offset
reality, investment in promoting green compliance costs.
105 | Practicing ESG in Vietnam

Lack of ESG The internal capacity of businesses to ESG for businesses. Furthermore,
capacity and implement ESG is still weak, as Vietnam lacks a workforce with in-
expertise within evidenced by a lack of personnel, depth ESG expertise in the market. A
enterprises
experts, and specialized skills in 2024 survey by the IV Department
sustainable development. According to (Private Economic Development
PwC, most listed companies in Department) revealed that “skilled
Vietnam currently do not have a personnel” is one of the three biggest
dedicated ESG department or barriers for businesses in their green
leadership to guide and promote transformation efforts. Building a
sustainability commitments. Many corporate culture that prioritizes ESG
businesses are not fully aware of the is still in its infancy, with many
importance of ESG, with 62% of business leaders not yet considering
companies not fully understanding ESG as a strategic priority. Overall,
related policies, and 39% having businesses are "both weak and
never heard of ESG. The main reason lacking" in terms of both awareness
is the absence of programs to raise and internal ESG expertise to
awareness and provide training on effectively report on ESG matters.

Data and Collecting and reporting ESG data is a standards leads to inconsistencies
measurement major technical challenge for across different organizations, making
system barriers businesses. KPMG's research shows it difficult to compare and integrate
that only 28% of companies in data. Some argue that Vietnamese
Vietnam have a clear ESG risk businesses are currently in shortage of
measurement framework to monitor both the capacity to collect data and
their progress. The majority of standardized reporting criteria,
businesses do not yet have a system resulting in ESG reports lacking
of indicators and effective reliability and consistency. A clear
measurement tools, making it difficult example of this is when faced with the
to assess ESG performance. According EU’s emission reporting requirements
to experts, identifying appropriate (CBAM), many businesses were
ESG metrics and collecting reliable, confused because they did not have
comprehensive data is a significant the necessary data and
challenge for businesses. Many measurement systems, preventing
Vietnamese companies lack effective them from submitting reports on time.
data management systems, with data Clearly, data-related barriers are
being fragmented and not hindering the implementation of ESG
standardized. At the same time, the strategies in businesses.
absence of unified ESG reporting
MCG Group | 106
107 | ESG
Practicing
practices
ESGininVietnam
Vietnam

Solutions and approaches for improvement

Although there are still many challenges, businesses and regulatory agencies have started to propose
solutions to overcome barriers in sustainability reporting:

Completing the regulatory framework and guidance

The government is making efforts to develop specific green taxonomy will provide businesses with a
regulations on ESG disclosure. Currently, listed standardized basis for measurement and reporting.
companies are required to disclose information on In addition, the government should introduce
their environmental impacts, and Vietnam is drawing support policies and practical incentive (such as
on international experiences (the US and EU) to issue tax benefits, green credit access, technical
mandatory regulations on emission reporting, consulting, etc.) to encourage enterprises to invest in
traceability, carbon credit mechanisms, etc. The sustainable development.
early issuance of a national ESG criteria set and a

Enhancing financial capacity and technical assistance

To address capital constraints, businesses can funds now place high importance on ESG factors and
access green investment funds or support programs are willing to finance businesses that meet
provided by the government and international sustainability standards.
organizations. For example, many foreign investment

Proactively seeking green finance sources

Businesses should proactively seek concessional systems. For instance, major funds such as
green loans, climate financing programs, and VinaCapital have supported portfolio companies in
allocate internal budgets for key ESG initiatives. On strengthening ESG capacity, establishing clear
the technical side, they can collaborate with strategies and initiatives. Such support helps
consulting firms or participate in training programs businesses enhance both data management
to receive support in developing ESG governance technologies and ESG implementation expertise.
 MCG Group | 108

Strengthening internal ESG capabilities and awareness

The human and organizational factors play a decisive should provide ESG training for their teams or
role. First and foremost, strong commitment from recruit/appoint ESG specialists to lead sustainability
leadership is essential - “the key to successfully initiatives. Training programs and experience-sharing
implementing sustainable development lies in the workshops (such as the “Vietnam ESG Initiative”) are
will and determination of top management”. Leaders also crucial in enhancing understanding and
must view sustainable development and long-term practical skills related to ESG. In parallel, digital
profitability as interconnected, rather than regarding transformation is recommended to go hand-in-hand
ESG purely as a cost that reduces profits. Many with green transformation, aiming to optimize
experts emphasize that businesses must “embed the processes and improve data management. For
gene of sustainability” into their organizational instance, implementing a centralized data
culture, in other words, raise awareness across all management system can facilitate the collection and
levels of staff and integrate sustainability goals into tracking of ESG metrics more easily and accurately,
operational processes. Specifically, businesses ensuring readiness for reporting purposes.

Adopting international ESG reporting standards

In the absence of comprehensive domestic have also sought consultancy from Big4 firms (such
guidelines, businesses are advised to refer to global as KPMG, PwC, etc.) to identify appropriate ESG
ESG standards such as GRI, SASB, and IFRS (ISSB), indicators and scientific measurement methods. In
etc. Learning from international best practices will the long term, as Vietnam moves towards mandatory
support companies in developing more structured ESG reporting, those businesses that have taken the
and transparent reporting systems. For example, lead by adopting international standards will be
since 2012, Vinamilk has adopted the GRI Standards better positioned to comply with regulations and
in its sustainability reporting, gradually standardizing meet the expectations of both domestic and
its disclosure practices. Other pioneering companies international investors.

Sustainability reporting is becoming an inevitable trend, but Vietnamese businesses still face many
challenges regarding regulations, resources, capacity, and data. Through examples and surveys
conducted in 2023-2024, it is clear that these difficulties are common. To overcome them, collaboration
is needed from both the government (to improve policies and support businesses) and businesses
themselves (to enhance internal capacity and shift strategic thinking). If these solutions are implemented
systematically, Vietnamese businesses can gradually adapt to ESG requirements, turning challenges into
opportunities for sustainable development and improving competitiveness in the coming years.
109 | Practicing ESG in Vietnam

Recommendations for interested parties

Based on the key findings from the ESG report in Vietnam, the following recommendations are provided for the
relevant parties. These suggestions will help each party understand where to start, how to take action, and
identify priority opportunities that align with their roles in the ESG journey.

Investors and Investment funds

Investor groups should integrate ESG criteria into Investment funds should view ESG as an
their investment strategies and decision-making opportunity: providing technical support to
processes. Specifically, they should use information businesses (e.g., consulting to improve ESG
on a company's ESG performance (e.g., level of capacity) and developing green financial products.
information transparency, environmental risks, Steering capital towards companies with strong ESG
governance practices) to assess risks and long-term practices not only helps mitigate risks but also
potential. Investors can also proactively engage with attracts the attention of international funds seeking
companies, setting clear ESG expectations and sustainable markets.
encouraging greater transparency in reporting.

SME Enterprises
Small and medium-sized enterprises can begin their international standards (e.g., becoming familiar with
ESG journey with simple steps that suit their existing the basic level of the GRI reporting standards). In
resources. First and foremost, strong commitment addition, SMEs should leverage external support - by
from leadership is essential, viewing ESG not merely participating in training programs, exploring green
as a cost, but as a long-term growth opportunity, credit funds or tax incentives for sustainable
and this mindset should be communicated clearly projects, and collaborating with larger supply chain
throughout the organization. Enterprises should partners to collectively raise ESG standards.
begin by fully complying with current environmental Effective ESG implementation can help SMEs
and labor regulations, while gradually adopting good optimize costs (such as energy savings and waste
practices such as measuring energy consumption, reduction), enhance brand reputation, and more
managing waste, and caring for employee well- easily access export markets or major investors who
being, etc. Once a solid foundation is established, increasingly prioritize sustainable businesses.
businesses can start moving toward relevant
 MCG Group | 110

Listed companies

Listed companies should take a leading role in ESG knowledge, and appoint senior personnel
practices, as they have significant resources and responsible for sustainability to ensure that ESG
influence in the market. Firstly, businesses should initiatives are closely monitored. In terms of
fully integrate Environmental, Social, and information transparency, companies should
Governance factors into their business strategy and enhance the quality of their annual ESG reports,
internal governance systems, including setting disclosing specific and reliable data on
specific sustainable development goals (for environmental (emissions, energy, water, etc.),
example, establishing scientifically feasible and social (labor, welfare, community, etc.), and
gradual targets for reducing greenhouse gas governance (structure, internal control, etc.)
emissions toward Net Zero) and incorporating ESG indicators. Engaging an independent third-party
into everyday decision-making. Listed companies auditor to verify or audit non-financial information
should also proactively adopt international reporting should also be considered, as it boosts credibility
standards such as GRI and SASB from the outset and meets the expectations of both domestic and
and prepare for future requirements under IFRS/ISSB international investors. When listed companies take
standards. At the same time, it is essential to the lead in action and share experiences (e.g.,
strengthen the ESG governance structure: establish through industry associations or sustainability
an ESG committee or dedicated department, train forums), the entire market will benefit, and the image
the Board of Directors and executives on ESG of Vietnamese businesses will be enhanced globally.

Researchers
ESG experts and researchers play a crucial role in can integrate ESG topics into business
raising awareness and improving the quality of ESG administration, finance, engineering, and other
practices through scientific research and education. curricula to equip the next generation of business
Firstly, the research community should continue to leaders with a sustainable mindset from an early
expand the scope and depth of ESG research in stage. The research community should also
Vietnam - for example, conducting annual surveys strengthen connections with businesses and
on ESG performance by sector, analyzing the policymakers: sharing research findings through
relationship between ESG practices and corporate workshops and seminars; providing scientific advice
financial performance, or studying the social impact to help establish ESG indicators or standards suited
of sustainable initiatives. Objective data and to Vietnam's context. In this way, research will not
analyses from research will provide clear evidence only remain on paper but also be transformed into
of the benefits of ESG, convincing hesitant practical solutions, directly contributing to the
businesses and investors to engage in this trend. At development of corporate ESG strategies and the
the same time, universities and research institutes formulation of effective public policies.

By acting together starting today, each stakeholder group, regardless of their role, can contribute to turning
ESG challenges into opportunities for sustainable development. This coordinated effort will help
Vietnamese businesses reach an international level on their meaningful ESG journey.
111 | Practicing ESG in Vietnam

Disclaimer
The report "ESG Practices in Vietnam – Data and Current Situation" was conducted by the expert team from
MCG Group, with the aim of providing a comprehensive, objective, and inspiring overview of the current ESG
practices in Vietnam. We would like to respectfully note:

We would like to respectfully note:

This report is based on a process of surveying, annual reports, sustainability reports, financial
compiling, and analyzing information from statements, and in-depth questionnaires with
publicly available data sources, including listed companies in the VNX Allshare index.

All information, data, and opinions in this report rapid evolution of the market, legal regulations,
reflect the situation at the time of the study; and ESG policies both domestically and
however, they may change over time due to the internationally.

The report has been conducted with the utmost report do not accept legal responsibility for any
care; however, it cannot fully guarantee the investment, business decisions, or actions
absence of unintended discrepancies or taken solely based on the content of this report
omissions. MCG Group and the authors of the without further verification and evaluation by
the user.

The analyses, assessments, and relevant parties with practical insights to shape
recommendations in this report are for sustainable development strategies that are
reference purposes, intended to support suited to the realities of Vietnam and
businesses, investors, policymakers, and international standards.

MCG Group firmly believes that: ESG implementation is not merely an obligation, but a vital opportunity for
Vietnamese businesses to break through, assert their value, and thrive in the global market. We hope this
report serves as a source of motivation, inspiring bold and sustainable progress on the journey toward building
a prosperous and responsible future for Vietnam’s business community.

We sincerely thank you for your trust and support!

 MCG Group | 112

About the Research lead organization: MCG Group

MCG Group is a leading management consulting firm in Vietnam, with over 23 years of experience supporting
organizations in economic growth, strategic restructuring, and sustainable development. The firm focuses on
optimizing management systems, strengthening organizational capabilities, and delivering tailored, practical
solutions informed by deep industry expertise.

Over the years, MCG has guided hundreds of organizations through transformation—refining structures,
streamlining operations, applying effective delegation models, enhancing internal processes, and establishing
performance-based incentive systems. Central to MCG’s approach is its dedication to building strong, capable
teams that deliver lasting value.

As ESG and sustainability become business priorities, MCG offers integrated solutions to enhance governance
transparency, operational resilience, and employee engagement, helping organizations align with global
standards and meet rising expectations from investors and stakeholders.

MCG currently operates a comprehensive consulting ecosystem, including:

MCG Management Consulting MCG IT Solution MCG Talent Gene

A consulting firm that supports A provider of HR digital A training and capacity-building
businesses in evaluating transformation solutions, organization offering programs
operations, setting development offering platforms that in leadership, digital
goals, and building governance automate processes, enhance transformation, and HR
and talent systems aligned with transparency, and improve management, with continued
strategic priorities. operational efficiency. support to help learners apply
skills effectively post-training.

By combining consulting, technology, and training, MCG is committed to supporting Vietnamese businesses in
modernizing governance, building sustainable organizations, and expanding regionally.

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113 | ESG practices in Vietnam MCG Group | 113
114 | Practicing ESG in Vietnam

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