Regulatory update
The Vietnamese government set ambitious climate goals at COP26 in Glasgow—committing to achieve net-zero carbon emissions by 2050, end deforestation by 2030, and phase out coal-fired power by 2040. Since then, it has made significant strides in creating a robust legal framework for climate action.
Vietnam’s ESG disclosure and reporting framework has undergone substantial evolution, driven largely by Circular No. 96/2020/TT-BTC issued by the Ministry of Finance in 2020. Building on Circular No. 155/2015/TT-BTC, this updated regulation mandates that companies within certain categories must disclose their environmental and social impacts. Effective 2021, these requirements apply to public companies, listed organisations, and corporations with publicly offered or listed corporate bonds. Companies may include these disclosures in their Annual Reports or issue separate ESG or Sustainability Reports, providing flexibility in reporting format whilst ensuring comprehensive disclosure of environmental, social, and governance impacts.
In addition, new regulations for the GHG inventory were established on 13 August 2024. The Prime Minister of Vietnam issued The Decision No. 13/2024/QD-TTg updating the lists of sectors and greenhouse gas emitting facilities required to develop greenhouse gas inventories, taking effect from 01 October 2024. Accordingly, the Decision has specified a list of 2,166 facilities are required to conduct updated greenhouse gas inventories in 2024. Of this total, 1,805 facilities belong to the industrial and commercial sector, 75 to transportation, 229 to construction, and 57 to natural resources and environment. The enterprises are required to submit the first GHG inventory by 31 March 2025.
To support Vietnamese companies in meeting these requirements, the State Securities Commission of Vietnam has collaborated with international bodies, including the International Finance Corporation, to develop relevant ESG reporting resources. A number of significant guidance documents are the Sustainability Reporting Handbook for Vietnamese Companies (2013), the Greenhouse Gas (GHG) Emissions Reporting Guidebook (2023), the ESG Implementation and Disclosure Handbook (2024), issued by State Securities commission of Vietnam in October 2024 (Vietnamese language only) and the ESG Legal Mapping Handbook (2024), issued by USAID and the Ministry of Planning and Investment of Vietnam (Vietnamese language only). These handbooks offer structured guidance on integrating sustainability practices and provide detailed methodologies for calculating and reporting GHG emissions, which is increasingly essential as Vietnam moves towards a low-carbon economy.
In addition to these frameworks, Vietnamese regulators emphasise aligning local ESG disclosures with international standards, such as those set by the Global Reporting Initiative (GRI) and the Task Force on Climate-related Financial Disclosures (TCFD).
Comments