By Ly Ly Cao

HÀ NỘI — The Vietnamese industrial landscape, from coatings and chemicals to paper, rubber and plastics, is entering a period of intensified global scrutiny as ESG (Environmental, Social and Governance) standards rapidly become mandatory across major export markets. 

This message resonated strongly at the launch meetings for 'Series of the International Exhibition Series for Coatings, Paper, Rubber & Tyre, Plastech Vietnam Vietnam 2026', held on Wednesday in Hà Nội. 

The event brought together association leaders, ESG experts and businesses at a moment when Việt Nam's industrial sectors are navigating complex market recovery patterns, stricter environmental regulations and a rising wave of foreign investment interest.

Industry recovery, global pressures

According to Vương Bắc Đẩu, permanent vice chairman of the Vietnam Paint & Printing Ink Association (VPIA), the coatings sector has moved past its lowest point and is witnessing an uneven but noticeable revival. 

"Demand recovery varies widely," he said, citing modest improvement in decorative coatings but "extremely impressive rebounds" in coil coatings and marine and protective coatings.

However, Đẩu emphasised the increasing vulnerabilities caused by tariff fluctuations and restructuring of global supply chains. 

"When we talk about production shifting from China to Việt Nam, from the outside it looks like an opportunity, but in reality, it can be a threat," he said. 

He added that industries dependent on global factors, such as steel-related coil coatings, are facing unpredictable cycles due to external pressures like anti-dumping duties.

Meanwhile, sectors fuelled by domestic demand, such as industrial coatings for factories and infrastructure, show stronger stability. 

"Those rooted in Việt Nam's internal economic drivers have more sustainable growth trajectories," Đẩu added.

One of the most pressing issues raised was the industry's slow progress in eliminating lead in paint, an environmental requirement set by the Vietnamese government for 2027. 

A study covering 20 companies, including both multinational and local enterprises, found that only two domestic brands met safety standards. 

"We are standing still, and we have only one year left," Đẩu warned, stressing that safety for consumers must be prioritised over competitive pressures.

ESG as a market entry requirement

Ngụy Thị Giang, head of the ESG Committee of HAMI and chairwoman of Green In Vietnam, highlighted the accelerating global shift toward transparent ESG reporting. 

More than 35 countries have enacted regulations on ESG disclosures, extending these requirements across supply chain partners.

For Vietnamese manufacturers, especially those in chemicals and materials, this means ESG is no longer optional. 

"ESG is becoming a condition for market access," Giang said. 

Businesses must demonstrate control over key environmental indicators, from VOC (volatile organic compounds) management to hazardous substance elimination and energy efficiency.

Giang noted that many enterprises still view ESG as a compliance burden, but market realities demand a mindset shift. 

"The core question is: Why do we need to do ESG? The answer is not to make the report look good. It is to retain customers and expand markets," she said.

She also pointed out the growing weight of intangible assets, including ESG performance, in investor decision-making. 

She cited research showing that companies with strong ESG practices can be valued up to 20 per cent higher than those without.

ESG compliance is expected to intensify as Việt Nam approaches key deadlines. 

For example, the regulation requiring 2,066 enterprises to submit their greenhouse gas inventory reports by March 31, 2025, is already in effect. Yet, only around 300 to 400 enterprises have actually done so, which may exceed the cost of hiring ESG consultants, Giang noted.

Different industries face different ESG priorities, but enterprises need to speed up in the practice. 

"The shift must begin from leadership mindset," Giang told Việt Nam News and Law. "ESG has to be integrated into business strategy, not treated as paperwork." 

She also suggested providing support for those who are in need.

"For companies expressing interest, Green In offers ESG performance assessments as well as emissions baseline evaluations," Giang added. 

"Operating as a social enterprise, Green In has committed to the Department of Planning and Investment that 51 per cent of its profits will be reinvested into social-impact initiatives. This is why the organisation has taken on a wide range of activities and responsibilities.

"We hope this information provides additional clarity for businesses that remain uncertain about where to begin and what steps to take, and that it will help them access the support they need." — BIZHUB/VNS