Global Journal of Economic and Finance Research

This study analyzes the role of Environmental, Social, and Governance (ESG) factors in promoting the development of carbon markets, while clarifying the relationship between ESG and technological innovation in the context of Vietnam. Amid increasing global emphasis on sustainable development and greenhouse gas emission reduction targets, ESG is considered a crucial tool for enhancing corporate transparency, accountability, and operational efficiency. The study employs a qualitative approach, including literature review, analysis of previous studies, and comparison of international experiences in several developing countries such as Brazil, India, and Indonesia. Based on this, the research evaluates the current implementation of ESG and the development of carbon markets in Vietnam, particularly in high-emission industries. The findings indicate that ESG plays a foundational role in improving information transparency, reducing information asymmetry, and supporting the development of carbon markets. At the same time, technological innovation is identified as a key factor in translating ESG commitments into actual emission reduction outcomes. The study proposes several policy implications to improve the legal framework, promote innovation, and foster the development of carbon markets in Vietnam.

ESG (Environmental, Social, and Governance), Carbon market, Technological innovation, Sustainable development in Vietnam, Construction and real estate sector.

1. Baker McKenzie. (2023). Green building certification in Vietnam. Retrieved from https://resourcehub.bakermckenzie.com
2. Centre for Business and Commercial Laws (CBCL). (2023, April 26). ESG implementation in corporate India: Progress, challenges, and solutions compared to the EU approach. https://cbcl.nliu.ac.in/corporate-governance/esg-implementation-in-corporate-india-progress-challenges-and-solutions-compared-to-the-eu-approach/
3. Chambers and Partners. (2025). ESG 2025—Brazil | Global practice guides. https://practiceguides.chambers.com/practice-guides/esg-2025/brazil
4. Dung, N. T. P., Tuyet, N. T. B., Anh, N. T. M., Hung, V. D. N., Giang, N. T., & Lan, N. H. (2024). The early stage of applying environmental, social, and governance in an Asian emerging economy. Revista de Gestão Social e Ambiental, 18(8), e07123. https://doi.org/10.24857/rgsa.v18n8-151
5. Dung, T. P. N., Nguyen, L. T. H., Nguyen, A. T. M., & Phan, L. T. (2024). Factors affecting the readiness for ESG reporting in Vietnamese enterprises. Problems and Perspectives in Management, 22(3), 263–275. https://doi.org/10.21511/ppm.22(3).2024.21
6. Đỗ, T. T. (2025). Tiêu chuẩn công trình xanh và tiêu chí môi trường đối với dự án công trình xanh tại Việt Nam [Green Building Standards and Environmental Criteria for Green Building Projects in Vietnam]. Tạp chí Khoa học Pháp lý Việt Nam, (03(187)), 48–58. https://doi.org/10.70236/tckhplvn.241
7. Ha, N. T. T., Nguyen, T. C., & Ho, N. T. B. (2024). The impact of ESG disclosure on stock prices: Empirical research in Vietnam. Heliyon, 10(19), e38757. https://doi.org/10.1016/j.heliyon.2024.e38757
8. Hart, S. L. (1995). A natural-resource-based view of the firm. Academy of Management Review, 20(4), 986–1014. https://doi.org/10.2307/258963
9. International Finance Corporation. (2022). Sustainability standards to boost green finance for a low-carbon economy in Vietnam (Press release). https://www.ifc.org/en/pressroom/2022/sustainability-standards-to-boost-green-finance-for-a-low-carbon-economy-in-vietnam
10. Ji, H., Huang, J., Sun, K., & Xing, Z. (2025). Does ESG performance lead to ambidextrous innovation? Journal of Innovation & Knowledge, 10(5), 100804. https://doi.org/10.1016/j.jik.2025.100804
11. Kraus, S., Rehman, S. U., & García, F. J. S. (2020). Corporate social responsibility and environmental performance. Technological Forecasting and Social Change, 160, 120262. https://doi.org/10.1016/j.techfore.2020.120262
12. Kreibich, N., & Hermwille, L. (2021). Voluntary carbon market post-2020. Climate Policy, 21(7), 939–957. https://doi.org/10.1080/14693062.2021.1948384
13. Li, Y., Chen, X., Wang, Y., & Li, D. (2023). ESG investment and carbon economy. Frontiers in Science and Engineering, 3(11), 15–18. https://doi.org/10.54691/fse.v3i11.5703
14. Lutfiana, L., Ariefianto, M. D., Trinugroho, I., & Sergi, B. S. (2025). Navigating climate challenges: How the Paris Agreement and capital shape the environmental, social governance (ESG)–emission trading score (ETS) relationship. Corporate Social Responsibility and Environmental Management. Advance online publication. https://doi.org/10.1002/csr.70189
15. Malik, N., & Kashiramka, S. (2024). Impact of ESG disclosure on firm performance and cost of debt: Empirical evidence from India. Journal of Cleaner Production, 448, 141582. https://doi.org/10.1016/j.jclepro.2024.141582
16. Nguyen, H. V. (2024). Strategic integration of ESG practices in Vietnam. In Proceedings of the 12th International Conference on Emerging Challenges. https://doi.org/10.15625/vap.2025.0057
17. Nguyen, H.-T., & Gray, M. (2016). A Review on Green building in Vietnam. Procedia Engineering, 142, 314–321. https://doi.org/10.1016/j.proeng.2016.02.053
18. Nguyen, T. M. P., & Hoang, T. M. (2025). Factors affecting the environmental, social, and governance reporting capability of listed companies on the Vietnamese stock market. Corporate and Business Strategy Review, 6(1). https://doi.org/10.22495/cbsrv6i1art14
19. Pata, U. K., Si Mohammed, K., Serret, V., & Kartal, M. T. (2024). Assessing the influence of climate risk, carbon allowances, and technological factors on the ESG market in the European Union. Borsa Istanbul Review, 24(4), 828–837. https://doi.org/10.1016/j.bir.2024.04.013
20. Perera, N. S., Costa, M. D. P., Macreadie, P. I., & Wartman, M. (2024). Trends in market-based blue carbon projects. Sustainable Development. Advance online publication. https://doi.org/10.1002/sd.3293 
21. Pham, D. H., Lee, J., & Ahn, Y. (2019). Implementing LEED v4 BD+ C projects in Vietnam: contributions and challenges for general contractor. Sustainability, 11(19), 5449.
22. PwC Vietnam. (2022). Vietnam ESG readiness report 2022. https://www.pwc.com/vn/en/publications/vietnam-publications/esg-readiness-2022.html
23. PwC Vietnam. (2025). ESG progress tracker 2025. https://www.pwc.com/vn/en/publications/vietnam-publications/esg-progress-tracker-2025.html
24. Qian, Y., & Liu, Y. (2024). Improve carbon emission efficiency: what role does the ESG initiatives play?. Journal of Environmental Management, 367, 122016.
25. RSM Indonesia. (2023). Navigating ESG compliance in Indonesia. https://www.rsm.global/indonesia/en/news/navigating-esg-compliance-indonesia
26. Sizirici, B., Fseha, Y., Cho, C. S., Yildiz, I., & Byon, Y. J. (2021). A review of carbon footprint reduction in construction industry, from design to operation. Materials, 14(20), 6094.
27. Tang, C., Wu, Y., & Liu, X. (2025). Does China's national carbon market play a role? Evidence from corporate ESG performance. Economic Analysis and Policy, 85, 1053-1064.
28. Tian, B., Yu, J., & Tian, Z. (2024). The impact of market-based environmental regulation on corporate ESG performance: a quasi-natural experiment based on China's carbon emission trading scheme. Heliyon, 10(4).
29. Tran, L. H., & Le, P. A. T. (2024). Environmental protection laws in construction activities in Vietnam–current situation and recommendations for improvement. Vietnamese Journal of Legal Sciences, 10(01), 99-114.
30. Tran, Q., & Huang, D. (2022). Using PLS-SEM to analyze challenges hindering success of green building projects in Vietnam. Journal of Economics and Development, 24(1), 47-64.
31. VietnamPlus. (2024). Green buildings in Vietnam increase significantly. https://en.vietnamplus.vn
32. Xie, H., Qin, Z., & Li, J. (2024). ESG performance and corporate carbon emission intensity: based on panel data analysis of A-share listed companies. Frontiers in Environmental Science, 12, 1483237.
33. Yao, R., Fei, Y., Wang, Z., Yao, X., & Yang, S. (2023). The impact of China’s ETS on corporate green governance based on the perspective of corporate ESG performance. International Journal of Environmental Research and Public Health, 20(3), 2292.
34. Yin, F., Xiao, Y., Cao, R., & Zhang, J. (2023). Impacts of ESG disclosure on corporate carbon performance: empirical evidence from listed companies in heavy pollution industries. Sustainability, 15(21), 15296.
35. Yu, X., Chen, L., & Ya, K. (2025). The Impact of the Carbon Emissions Trading Policy on the Corporate ESG Performance–Evidence from China. Polish Journal of Environmental Studies, 34(6), 7921-7932.
36. Zhang, Y., Zhang, Y., & Sun, Z. (2023). The impact of carbon emission trading policy on enterprise ESG performance: evidence from China. Sustainability, 15(10), 8279.