The Business World Is Changing Fast
Rules are shifting. Expectations are rising. Eyes are watching. We are talking about ESG laws in Vietnam.
Everywhere you look, companies are being asked not only to perform, but to perform responsibly. It is no longer just about revenue or market share.
Buyers want answers. Investors want proof. And governments are tightening regulations to hold businesses accountable.
In Vietnam, this change is arriving quickly. Many businesses are being asked to show responsibility, not just in reports, but in reality. That means understanding and following a new generation of regulations.
These ESG laws in Vietnam that cover how your business impacts the environment, how you treat workers and communities, and how your management operates behind the scenes.
In here we will explain what you need to know, why it matters now, and what actions to take so you do not fall behind.
ESG Is Now Part of Legal Compliance in Vietnam
In the past, most companies in Vietnam focused on the basics i.e. getting a license, following tax laws, and avoiding direct violations. If you stayed clear of obvious legal trouble, you were fine.
That is no longer enough.
Modern compliance now includes how your company affects the environment, whether your employees are treated fairly, and whether your management is clean and transparent. These are not just soft expectations from foreign partners anymore but they are becoming binding legal obligations.
The rise of ESG laws in Vietnam means businesses must meet standards in three major areas:
- Environmental: such as emissions, waste management, and resource usage
- Social: such as worker safety, labor rights, and equality
- Governance: such as anti-corruption, transparency, and ethical conduct
Understanding and applying these laws is now important not only to avoid penalties but to survive in a more demanding business landscape.
Make ESG Laws in Vietnam Understandable and Actionable
Many businesses are confused. They hear about ESG. They hear about compliance. But they are not sure what exactly the ESG laws in Vietnam require.
Some try to guess. Some do nothing. Some overdo it and waste time or money.
We are here to give you clarity.
You will learn:
- What legal requirements relate to ESG laws in Vietnam
- Which agencies enforce them
- What risks you face if you ignore them
- And what steps to take right now to be safe and competitive
You do need to understand the key rules that shape your business environment today.
ESG Is Already in the Legal System
Let’s look around.
A factory has to conduct an environmental impact assessment before expanding. A real estate developer is being asked to disclose its emissions and construction waste disposal methods.
These are not future possibilities. They are real examples of ESG enforcement under current law.
And that is exactly why understanding ESG laws in Vietnam is now essential for any business, large or small, local or foreign-owned.
Here is a breakdown of how the ESG laws in Vietnam already exist:
Environmental Laws (E in ESG)
Law on Environmental Protection and its guidance decrees
- Requires environmental impact assessments (EIAs) for many types of projects
- Mandates environmental permits for activities involving waste, emissions, and resource use
- Includes rules on carbon reporting, green labeling, and climate adaptation
- Provides guidance on types of permits, classifications of projects, and technical requirements
- Introduces stricter penalties for violations, including public disclosure and temporary suspension
What this means: Businesses must track their waste, emissions, and usage of energy and water. They must file reports, apply for permits, and meet environmental standards or risk legal action and loss of investor confidence.
Social Laws (S in ESG)
Labor Code
- Prohibits forced labor and child labor
- Requires clear contracts, fair wages, and working conditions
- Promotes gender equality and worker representation (e.g., trade unions)
Law on Occupational Safety and Health (OSH)
- Requires risk assessments and accident prevention plans
- Mandates safety training and protective equipment
- Establishes rules for regular reporting of workplace accidents and illness
What this means: Even small businesses must ensure that employment terms are lawful, that workplaces are safe, and that social protections are in place. These are not only moral duties, they are legal requirements.
Governance Laws (G in ESG)
Law on Enterprises
- Requires transparency in management
- Governs shareholder rights, internal audits, and conflict-of-interest rules
- Sets responsibilities for company directors and general meetings
Anti-Corruption Law
- Requires both public and private companies to apply anti-corruption practices
- Encourages whistleblower mechanisms and reporting of unethical behavior
- Penalizes bribery and undisclosed conflicts
What this means: ESG laws in Vietnam is no longer just about external impact. It also covers how businesses are run from within. That includes policies, recordkeeping, leadership structure, and accountability.
Real Trends and Rising Enforcement
Still wondering if this really applies to you?
Here are five signs that the ESG laws in Vietnam are already shaping business realities:
Public Company Reporting Is Expanding
Vietnamese listed companies are already required to report on their environmental and social impacts. This trend is likely to expand to large private enterprises in the next few years.
Foreign Buyers Are Enforcing ESG Contracts
Multinational clients are increasingly adding ESG clauses to supplier contracts. This includes compliance with labor law, waste audits, or human rights due diligence.
Trade Deals Are Not Just About Tariffs
The EVFTA, CPTPP, and other agreements contain chapters on labor and environmental obligations. These impact customs clearance, preferential tax treatment, and buyer selection.
Investment Projects Are Being Screened
Investors from developed countries are reviewing ESG risks before investing. This includes requesting audits or setting ESG pre-conditions before approving deals.
Local Authorities Are Getting Tougher
Inspections by environmental agencies and labor inspectors have increased. Companies that are non-compliant risk being fined or having their business licenses suspended.
6 Steps to Navigate ESG Laws in Vietnam
Now that you know what the laws require, how do you actually respond?
Step 1: Start with a Legal Gap Analysis
Review your current business activities. Compare them with the relevant environmental, labor, and governance laws. Identify where you are compliantm and where you are not.
Step 2: Build Simple ESG Policies
Develop short, clear documents outlining your approach to:
- Waste management
- Labor treatment
- Ethical conduct and transparency
Share these policies with your team and clients to demonstrate awareness and accountability.
Step 3: Document What You Already Do
Chances are, you are already doing something right maybe using solar power, or ensuring worker safety. Start recording those actions. That way, you can prove compliance when needed.
Step 4: Engage a Legal or ESG Advisor
You do not need to navigate ESG laws in Vietnam alone. Lawyers and ESG consultants can help make sense of the regulations, provide training, and develop a compliance plan tailored to your business.
Step 5: Prepare for ESG Reporting
Start collecting data regularly. This includes electricity and water use, waste disposal records, accident logs, and training sessions. Use this data to build basic ESG reports.
Step 6: Communicate Carefully and Honestly
Just be transparent about what you are doing and where you are improving. Avoid greenwashing. A little honesty builds far more trust than flashy promises.
ESG Law Is the New Playing Field
The landscape has changed. What used to be considered a competitive advantage is quickly becoming a minimum standard.
In Vietnam, the shift is clear. Businesses that understand and follow ESG laws in Vietnam will be the ones welcomed by investors, supported by regulators, and trusted by customers.
Do not wait for the audit, the buyer rejection, or the government warning.
Build compliance into your business as a bridge to stronger, smarter, and more sustainable growth.
About ANT Lawyers, a Law Firm in Vietnam
We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi, and Danang, and will help customers in doing business in Vietnam.
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