Part 4: ESG Practices in Vietnam’s Key Economic Sectors

Specifically, the Environmental pillar is prioritized through measures to reduce greenhouse gas emissions, optimize resource use, and apply advanced technologies in production. The Social pillar is strengthened by creating thousands of new jobs in economically disadvantaged areas such as the Central Highlands and the Mekong Delta.

However, the greatest challenge for the renewable energy sector lies in the substantial investment required and its dependence on government support policies. Expanding green loans and promoting public-private partnerships will be essential for this sector to continue on a sustainable path.

The construction sector, a critical industry with a significant environmental impact, faces considerable challenges in ESG practices. According to reports, ESG implementation in construction scores only 45% in the Environmental pillar, the lowest among production sectors.

Key issues include inefficient waste management and emissions control, compounded by high costs associated with green technologies. Additionally, sustainable construction standards are not yet widely adopted.

Nonetheless, some large companies like Coteccons have shown commendable efforts in integrating ESG into their development strategies. These companies not only use environmentally friendly building materials but also promote labor safety and social welfare policies for workers. These practices should be expanded across the entire industry.

Agriculture, a cornerstone of Vietnam’s economy, faces significant challenges from climate change and soil resource depletion. The 2024 report indicates that ESG practices in this sector remain limited, especially in the Mekong Delta and the Northern Highlands.

However, there are exemplary sustainable agricultural models, such as the circular production approach implemented by the Ta Danh Agricultural Cooperative in An Giang. This cooperative not only maximizes the use of agricultural by-products but also encourages community participation in environmental protection activities.

Vietnam's key economic sectors are on a journey to implement ESG with varying results. While renewable energy and sustainable agriculture have achieved commendable successes, the construction sector requires significant improvements. Strong government support, combined with innovative financial and technological solutions, is crucial for these sectors to become leaders in sustainable transformation. If effectively leveraged, ESG practices will not only present challenges but also act as a driving force for the development of the entire economy.