Vietnam’s State Securities Commission (SSC) has announced plans to amend its Circular 96 regulation to strengthen sustainability reporting and bring corporate environmental, social, and governance (ESG) disclosures in line with international best practices. The reform is part of the country’s broader strategy to integrate green finance principles into its capital markets and attract foreign investment aligned with global sustainability standards. Speaking at The Investor’s Green Energy Transition Forum on October 30, Pham Thi Thuy Linh, Head of the SSC’s Market Development Department, confirmed that the regulator is currently reviewing Circular 96 to improve the quality, consistency, and comparability of ESG reports published by listed and public companies.

Strengthening ESG Alignment Through Regulatory Reform

Circular 96, which guides information disclosure in Vietnam’s stock market, came into force on January 1, 2021. The planned amendments aim to move beyond basic compliance reporting and create a framework compatible with international disclosure benchmarks, such as those developed by the International Sustainability Standards Board (ISSB) and the Global Reporting Initiative (GRI). Linh explained that the revision will complement recent efforts to formalize green finance instruments, including the SSC’s Green, Social, and Sustainability (GSS) Bond Guidelines launched in 2021 and a subsequent Green Bond Information Disclosure Handbook published in 2023. The handbook provides issuers with detailed requirements for pre- and post-issuance reporting, ensuring that disclosures are transparent, comparable, and aligned with global market expectations.

“Following the issuance of guidelines on green, social, and sustainable bonds, the SSC has established a comprehensive legal basis to help enterprises access green capital sources at home and abroad,” Linh said.

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Tax Incentives and Green Finance Integration

Vietnam’s Ministry of Finance (MoF) is simultaneously introducing a suite of tax incentives to encourage sustainable finance adoption. Under Circular 83, companies issuing green bonds receive exemptions from listing and disclosure service fees at the Vietnam Stock Exchange and the Vietnam Securities Depository and Clearing Corporation (VSDC). Additional incentives under the adjusted Law on Corporate Income Tax include preferential treatment for enterprises issuing green bonds and for investors purchasing them in primary transactions such as tax exemptions on green bond interest. These measures are designed to mobilize capital for green infrastructure, renewable energy, and carbon mitigation projects, while positioning Vietnam as a regional hub for sustainable investment.

Building a Culture of ESG Transparency

The SSC has integrated ESG-related disclosure into annual and sustainability reporting requirements for listed firms since 2021. Every year, Vietnam’s stock exchanges conduct ESG scoring assessments for listed enterprises and recognize top performers with sustainability awards. The assessments are intended to build awareness and encourage companies to voluntarily adopt stronger governance and environmental performance standards. The Ho Chi Minh City Stock Exchange (HoSE) has also maintained the Vietnam Sustainability Index (VNSI) since 2017. The index highlights 20 companies from the VN100 basket that demonstrate leadership in sustainable practices. According to Linh, the SSC is now considering expanding the criteria to include medium-sized enterprises that show significant ESG progress, rather than limiting the index to high-capitalization firms.

Preparing for Vietnam’s Carbon Credit Market

In parallel, Vietnam is finalizing the legal infrastructure for a domestic carbon credit trading system, signaling its intent to integrate carbon pricing into corporate disclosure frameworks. The Ministry of Finance is drafting a decree to establish a carbon credit trading floor, expected to be launched through the Hanoi Stock Exchange, with transactions cleared and settled via the VSDC. This mechanism will allow companies to trade verified carbon credits and report them within their sustainability and emissions disclosures, creating an additional compliance and transparency layer aligned with global climate finance norms.

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Toward a Globally Competitive ESG Framework

Vietnam’s move to revise Circular 96 underscores a growing recognition that international investors demand credible, standardized, and verifiable ESG data. By harmonizing domestic disclosure rules with global frameworks, the SSC aims to improve market integrity, investor confidence, and access to sustainable finance. As the ASEAN region ramps up its sustainability reporting standards following the ISSB’s IFRS S1 and S2 frameworks, Vietnam’s initiative signals its determination to stay competitive and transparent in the global push toward climate-aligned capital markets. If fully implemented, the upcoming ESG disclosure reform could mark a defining step in Vietnam’s transition from voluntary sustainability reporting to mandatory, globally benchmarked accountability bridging the gap between domestic capital flows and the trillion-dollar opportunities in sustainable investment.

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