As ESG (Environmental, Social and Governance) standards become increasingly important for businesses in Việt Nam, the demand for qualified ESG professionals is rising – but the talent pool remains limited. Việt Nam News reporter Mai Hương speaks with Phùng Văn Đông, director of the Asian Institute of Technology Centre in Việt Nam (AIT Vietnam), about the challenges in building an ESG-ready workforce and the steps needed to close the gap.

What are the major gaps in ESG workforce training among Vietnamese businesses, and are they rooted in education, awareness or business culture? What kind of skills or knowledge should ESG personnel have?

I believe the key issues stem from weak forecasting and preparation. In the past, science and technology developed in long cycles, 10 or 15 years, but today, those cycles are extremely short, sometimes just a year or even a few months. We didn’t anticipate these rapid changes, and as a result, our labour supply system couldn’t keep up. We also failed to build the necessary training infrastructure or design programmes that prepare workers for future ESG demands.

ESG is an interdisciplinary field grounded in three pillars: Environment, Social and Governance. It requires professionals to have integrated, cross-sectoral knowledge and a mindset that embraces technology and digital transformation.

ESG work depends heavily on systems for data collection, analysis and transparent reporting – tasks that rely on technology, particularly blockchain and AI. Without this foundation, it’s impossible to implement ESG strategies effectively.

For Vietnamese SMEs, where should they begin if they want to develop ESG human resources, especially export-oriented companies which are under growing pressure to meet ESG standards compared to domestic businesses?

That’s a very interesting question.

I believe the first step for businesses is to assess where they currently stand, what resources they have and what stage they’re in. From there, they can develop a plan to build the right workforce.

The export-oriented companies, or 'Go Global' companies, are very proactive. They’re dynamic, they seize opportunities and they’re fully aware of the challenges. However, the ESG talent supply within Việt Nam is limited. Even within these companies, resources can be tight.

Take seafood, wood or textile exporters for example. If they want to export to markets like the EU, they have to meet very strict standards. A good example is the EU’s CBAM regulation, which requires clear ESG reporting. These companies are fully aware of that – they’re not clueless.

But their main constraints lie in financial and human resources. ESG investment costs are high in the short term, and unless a business has a long-term vision and sustainable financial capacity, they can’t make the commitment. ESG and digital transformation are both long-term journeys.

As for talent, as I've noted, there are very few training institutions in Việt Nam that offer ESG education. Only in the last one or two years have some universities started ESG-related departments or programmes, and those students haven’t even graduated yet.

As I mentioned earlier, without proper workforce preparation, no matter how much money you invest in technology, your ESG implementation won’t be effective.

What’s missing in current ESG training programmes to truly meet the fast-evolving needs of businesses? How should education systems, training institutions and companies work together to build an effective ESG talent pipeline?

While Việt Nam’s foundational scientific education is strong, our ESG training still lacks timely, up-to-date content – especially in areas involving fast-changing, emerging technologies.

One challenge is that universities often struggle to update their curricula quickly enough. In contrast, international institutions and short-term training programmes have more flexibility to adapt and teach relevant, real-time skills.

To address this gap, strong collaboration between academic institutions and businesses is essential. Without close cooperation in designing and delivering training programmes, there will always be a disconnect between theoretical knowledge and practical application.

At AIT, for example, we partner with Bosch Bangkok, where Bosch experts teach a course on supply chain management in our master’s programme. Students receive both academic credit and an industry-recognised certificate from Bosch.

Another example is FPT, which has integrated training programmes that link university learning with hands-on experience in its own businesses. These models show how effective partnerships can create ESG talent that meets real-world demands.

From a policy standpoint, what mechanisms are still missing in Việt Nam to encourage or require businesses to seriously invest in ESG?

The government currently has many support packages available for businesses. I’ve worked with the Ministry of Planning and Investment and now part of the Ministry of Finance, and I am aware of several business support programmes.

However, some companies still lack real action. They may have awareness and good intentions, but their actual efforts are still weak. I think this stems from two main issues, including limited resources and business pressures.

Some businesses view ESG as a 'green story' or something only 'wealthy' companies can afford. Many see ESG as costly, without clearly seeing immediate returns. That’s why government support is essential – but it must come with a clear commitment from businesses to follow through and ensure those resources are used effectively. — VNS