ESG Reporting – Vietnam Edition

Environmental, Social, and Governance (ESG) reporting has evolved from a corporate buzzword into a decisive factor in global trade and competitiveness. For small and medium-sized enterprises (SMEs) in Vietnam, ESG isn’t just about reputation anymore — it’s becoming a key requirement for survival in today’s interconnected supply chains.

Vietnam’s manufacturing-led economy, growing foreign investment, and participation in global trade agreements like the CPTPP and EVFTA mean one thing: transparency, sustainability, and compliance are no longer optional.

Key Takeaways

ESG reporting helps Vietnamese SMEs meet international supply chain and investor expectations.
Early adoption of ESG practices positions SMEs for global market access and long-term resilience.
Using ESG The Score’s ESG Reporting Kit can save up to 60 hours in setup, policy drafting, and data mapping.

Introduction to ESG Reporting

ESG reporting reflects how a company manages environmental, social, and governance (ESG) factors that affect its performance, reputation, and access to capital.

For Enterprise level companies, the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), and the Task Force on Climate-related Financial Disclosures (TCFD) define the structure for ESG disclosures. In the European Union, the Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS) set new benchmarks for accountability — influencing supply chains worldwide, including Vietnam’s export-dependent industries.

Vietnam is catching up fast. Under Circular 96/2020/TT-BTC, listed companies must now disclose sustainability and ESG-related information in their annual reports. The State Securities Commission (SSC) encourages voluntary reporting aligned with GRI and Integrated Reporting (IR) frameworks. These measures signal a clear national direction toward sustainable growth — fully aligned with the Vietnam Green Growth Strategy 2021–2030.

For SMEs, this trend represents both a challenge and an opportunity. Implementing ESG principles requires effort — but it builds trust, attracts investment, and opens doors to international supply chains that increasingly demand proof of sustainability.

ESG and the Shifting Supply Chains – A Survival Moment for SMEs

Across the globe, supply chains are being restructured at record speed. Trade tensions, regional conflicts, and rising tariffs have accelerated the realignment of sourcing and production hubs — and Vietnam has emerged as a major beneficiary.

However, this shift also brings a new kind of pressure. Large enterprises and global buyers now require documented ESG compliance from every supplier in their network. For SMEs, this means the difference between staying in a lucrative supply chain or being quietly replaced by a more transparent competitor.

Many long-standing supplier relationships are breaking as multinational corporations realign with “clean,” auditable partners. SMEs in Vietnam are being forced to adapt, prove their sustainability practices, and earn trust through verified data.

Those who act early — by documenting their ESG performance and aligning with frameworks like GRI or TCFD — will secure their position and attract new buyers. This isn’t just about compliance; it’s about securing survival in tomorrow’s trade ecosystem.

ESG reporting is now your passport to the next generation of global trade.

Save 40–60 hours of setup, policy drafting, and data mapping with an ESG Reporting Kit!

ESG Reporting Frameworks

Choosing the right ESG reporting framework is essential to ensure consistency, accuracy, and global comparability.

The leading frameworks include:

Global Reporting Initiative (GRI): Most widely used worldwide; focuses on stakeholder impact.
European Sustainability Reporting Standards (ESRS): Required for companies under the EU’s CSRD.
Task Force on Climate-related Financial Disclosures (TCFD): Focuses on climate risks and governance.
International Sustainability Standards Board (ISSB): Their mission is to establish a global baseline for ESG reporting.

For Vietnamese SMEs exporting to the EU or working with European partners, aligning with ESRS or TCFD is increasingly valuable.

Meanwhile, Vietnam’s Green Growth Strategy 2021–2030 encourages businesses to adopt these frameworks voluntarily, signaling that future regulations will likely make them mandatory.

ESG Data Management

Effective ESG data management ensures that what you report is both credible and verifiable.

SMEs must collect, analyze, and disclose ESG data consistently — covering metrics such as:

Carbon emissions (Scope 1, 2, and eventually 3)
Energy and water usage
Waste management and recycling practices
Employee well-being and diversity
Corporate governance and anti-corruption measures

Modern ESG reporting software and data tools can automate much of this work, helping Enterprise level companies maintain compliance with standards like GRI, SASB, and ESRS. But for small and medium businesses, this software is often too expensive and not designed for SMEs. But there are alternatives, like the ESG Reporting Toolkit, which is designed to make transparency fast and easy for small and medium companies.

Problems with ESG Reporting Software for SMEs

High cost: Most ESG software platforms are built for large enterprises and priced beyond SME budgets.
Complex setup: Requires extensive onboarding, customization, and IT integration that small teams can’t support.
Steep learning curve: Interfaces and analytics tools are too technical for non-specialist users.
Low flexibility: Limited ability to tailor metrics or templates to SME-specific operations.
Overbuilt features: Many tools include modules (e.g., carbon trading, global assurance) irrelevant to small firms.
Hidden costs: Add-ons for extra users, data storage, or export functions often inflate expenses.
Poor localization: Few platforms reflect local regulations, languages, or reporting standards (e.g., Vietnam’s Circular 96/2020/TT-BTC).
Weak customer support: Service levels assume enterprise accounts; SMEs face slow or no support.
Data overload: Too many dashboards and KPIs without clear guidance on what actually matters.
Limited offline usability: Dependence on cloud connectivity can hinder operations in regions with unstable internet.
Vendor lock-in: Proprietary data formats make it hard to switch tools later.
Security concerns: SMEs often lack resources to verify how vendors handle ESG and governance data.
No built-in templates: Lack of ready-made reporting frameworks means extra time creating reports from scratch.
Integration gaps: Doesn’t sync easily with existing SME accounting or HR systems.
Lack of affordability and ROI clarity: Hard to justify investment when reporting doesn’t directly increase revenue.

Reliable data builds trust. It allows SMEs to track progress, identify risks, and demonstrate accountability — all of which are critical for retaining contracts with multinational clients.

Regulatory Compliance

Regulatory compliance forms the backbone of ESG credibility.

In Vietnam, regulations are tightening:

Circular 96/2020/TT-BTC: Requires listed companies to include sustainability information in their annual reports.
Law on Environmental Protection 2020: Introduces stricter environmental impact assessments and reporting obligations.
Vietnam Green Growth Strategy 2021–2030: Sets targets for reducing greenhouse gas emissions and promoting sustainable production.

Globally, SMEs must also understand external compliance expectations:

Corporate Sustainability Reporting Directive (CSRD) in the EU.
Sustainable Finance Disclosure Regulation (SFDR) for financial institutions.
Task Force on Climate-related Financial Disclosures (TCFD) for climate risk reporting.

Complying with these standards not only prevents reputational risk but also enhances your corporate strategy, helping align sustainability goals with long-term business growth.

ESG Reporting Requirements

Every jurisdiction has different ESG reporting requirements, but the fundamentals remain consistent:

Disclose ESG metrics, such as greenhouse gas emissions, diversity ratios, and energy intensity.
Describe ESG risks and opportunities, including climate-related and supply chain risks.
Explain your governance approach and risk management practices.

For Vietnamese SMEs, this means preparing for:

Requests for sustainability data from foreign buyers.
Audits or supplier assessments that include ESG criteria.
Voluntary reporting aligned with GRI or IR frameworks to boost investor confidence.

Claim Your ESG Reporting Toolkit Instantly!

Data Collection

Collecting ESG data is where many SMEs struggle — yet it’s the foundation of credible reporting.

Start with what you can measure:

Energy consumption from invoices or utility bills.
Water use from monthly reports.
Employee engagement through surveys.
Waste data from disposal records.

Then, set simple digital systems to track this information quarterly. Over time, these data points form the backbone of your sustainability reports and allow you to track progress year over year.

Automated data collection and template-based reporting (like those in the ESG Reporting Kit) save hours of manual labor while improving accuracy.

ESG Initiatives

Adopting ESG initiatives transforms compliance into opportunity.

Examples for Vietnamese SMEs include:

Installing solar panels or energy-efficient machinery.
Partnering with local NGOs on community health or education programs.
Launching waste reduction campaigns or green packaging initiatives.
Establishing diversity and inclusion hiring practices.

These initiatives build measurable ESG performance — improving reputation, employee retention, and customer loyalty. More importantly, they show that your sustainability strategy isn’t just words — it’s action.

Reporting Obligations

Meeting reporting obligations is about transparency and timing.

Vietnamese companies are encouraged to issue annual sustainability reports, either integrated into financial reports or published separately. For export-oriented SMEs, doing so in alignment with GRI or ESRS makes your data internationally comparable.

Ensure your reports include:

Key ESG metrics and progress over time.
Governance structure and accountability mechanisms.
External assurance, if available, for added credibility.

Failing to report accurately or on time can jeopardize business relationships, especially with multinational partners bound by CSRD or SFDR requirements.

Best Practices for ESG Reporting

Follow these best practices for effective and efficient ESG reporting:

Be transparent: Report both achievements and challenges.
Stay consistent: Use standardized methodologies and frameworks.
Engage stakeholders: Include input from employees, investors, and suppliers.
Link ESG to strategy: Show how sustainability supports your business goals.
Leverage tools: Use ready-made templates and kits to simplify reporting.

Vietnam’s SMEs that start small but stay consistent will be best positioned as global ESG requirements tighten.

Win More Contracts — Start with the ESG Reporting Toolkit!

The Importance of ESG Reporting

ESG reporting isn’t just about compliance; it’s a strategic advantage.

By communicating your sustainability journey clearly, you build trust with customers, investors, and employees. You also demonstrate risk management capabilities that reassure partners and lenders alike.

In Vietnam’s fast-growing economy, ESG reporting aligns perfectly with the government’s green growth agenda and the nation’s ambition to attract responsible foreign investment.

Unlike financial reporting, which shows what your business has done, ESG reporting shows where your business is going.

Benefits of ESG Reporting

Strong ESG performance leads to tangible business benefits:

Reputation: Build credibility and attract international buyers.
Efficiency: Reduce waste and resource costs through sustainable practices.
Capital Access: Appeal to investors and lenders prioritizing ESG metrics.
Resilience: Prepare for future regulatory changes and supply chain audits.
Employee Engagement: Retain talent by showing commitment to shared values.

Ultimately, ESG reporting enhances both sustainability and profitability, helping your company thrive in a transparent and competitive market.

Everything You Need for ESG Compliance — In One Toolkit!

Conclusion

For Vietnamese SMEs, ESG reporting is more than a requirement — it’s a growth strategy. The sooner your business aligns with global sustainability standards, the stronger your position in regional and international markets.

Start small, stay consistent, and let data drive your story. ESG The Score can help you do it faster, smarter, and more affordably.

FAQs

1. What is ESG reporting and why is it important in Vietnam?

ESG reporting discloses how companies manage environmental, social, and governance factors. In Vietnam, it helps SMEs meet global buyer expectations and comply with emerging sustainability regulations.

2. Which ESG frameworks should Vietnamese SMEs follow?

GRI, TCFD, and ESRS are the most recognized globally. For Vietnam, aligning with GRI and the Green Growth Strategy ensures future readiness.

3. Is ESG reporting mandatory in Vietnam?

Not yet for all SMEs, but Circular 96/2020/TT-BTC requires listed companies to include sustainability information. Voluntary adoption prepares SMEs for upcoming regulations.

4. How does ESG affect supply chain eligibility?

Large corporations require ESG-compliant suppliers. Without ESG documentation, SMEs risk losing contracts.

5. What are the main ESG metrics for SMEs?

Carbon emissions, energy use, water consumption, waste management, diversity, and governance practices.

6. How can SMEs collect ESG data efficiently?

Use digital tools, standardized templates, and consistent quarterly tracking — or ESG The Score’s Reporting Kit for automation.

7. What happens if an SME ignores ESG reporting?

They risk exclusion from global supply chains, losing contracts, and damaging investor confidence.

8. How can ESG improve financial performance?

By cutting waste, improving efficiency, and attracting investors who value responsible business practices.

9. What is the role of Vietnam’s Green Growth Strategy in ESG?

It provides the national framework for sustainable development, encouraging businesses to adopt green production and disclosure.

10. How can ESG The Score help SMEs in Vietnam?

It simplifies ESG compliance with ready-to-use reporting kits, templates, and frameworks tailored for SMEs.

About ESG The Score

ESG The Score makes it easy for small and medium businesses to stay ahead of ESG reporting requirements and growing supply chain audit pressures. We understand that SMEs are often downstream from larger entities and face increasing demands for transparency and compliance. Our solutions are designed to be quick, smart, and affordable, giving you the right tools without heavy consulting fees or complex software. From ESG reporting kits to core policy bundles and IT compliance frameworks, we simplify sustainability and make it actionable. With ESG The Score, companies can take control of their reporting, build trust with partners, and stay competitive in their industries.

You may also want to review our ESG Reporting Toolkit, Supply Chain Audit, Core Policy Bundle and Stakeholder Engagement Toolkit for Canada, United States, India, United Kingdom, Australia, Brazil, Singapore, Malaysia, Germany, France, Philippines, South Africa, Ireland, UAE, Netherlands, Hong Kong, Romania, Czechia, Vietnam and Turkiye.