Factors affecting the readiness for ESG reporting in Vietnamese enterprises
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Author(s)Dung Thi Phuong NguyenLink to ORCID Index: https://orcid.org/0000-0001-6347-544X
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Lien Thi Huong NguyenLink to ORCID Index: https://orcid.org/0000-0002-6664-1148
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Anh Thi Mai NguyenLink to ORCID Index: https://orcid.org/0009-0003-8210-5235
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Long Le Thanh PhanLink to ORCID Index: https://orcid.org/0009-0002-4491-048X
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DOIhttp://dx.doi.org/10.21511/ppm.22(3).2024.21
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Article InfoVolume 22 2024, Issue #3, pp. 263-275
- 524 Views
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118 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Countries around the world are taking further steps toward transparency and corporate sustainability. Environmental, social, and governance (ESG) reporting will be required for all firms listed on European exchanges as of 2026 according to the Corporate Sustainability Reporting Directive. Meanwhile, the companies’ rate in Vietnam reporting and disclosing ESG information is still limited. There is an empirical gap between the theory and practices of ESG reporting in Vietnam. Therefore, this study aims to investigate the determinants affecting the readiness for ESG reporting in Vietnamese enterprises. Survey questionnaires and quantitative analysis are employed based on the structural models using SmartPLS4 software to analyze the sample of 169 manufacturing, commercial, and service enterprises in Vietnam. The findings show that accountant qualifications, management processes, women on management boards, and information technology systems positively affect Vietnamese firms’ readiness to report ESG. The relationship between business executives’ ESG awareness, public media pressure, governmental guidelines, and the readiness for ESG reporting is not statistically supported. Based on the research results, Vietnamese enterprises should increase women’s participation on management boards, facilitate professional development and training for accountants, invest in information technology systems, and improve management processes to enhance the adoption of ESG reporting in Vietnam.
- Keywords
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JEL Classification (Paper profile tab)M14, M40, M41, Q56
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References66
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Tables5
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Figures0
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- Table 1. Sample characteristics
- Table 2. Cronbach’s Alpha and composite reliability
- Table 3. Discriminant validity test
- Table 4. p-values and original sample results
- Table A1. Measurement of variables and sources of reference
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