Assessment and Comparison of ESG Disclosure Levels in the 2024 Annual Reports of State-Owned and Joint-Stock Commercial Banks in Vietnam

Abstract

1) Rationale: This paper examines how Vietnamese commercial banks disclose Environmental, Social, and Governance (ESG) information as part of the sector’s ongoing transition toward sustainable finance. As sustainability becomes a central pillar of Vietnam’s financial development strategy, understanding the current disclosure practices is essential for identifying strengths, weaknesses, and areas that require institutional support. 2) Objectives: The study quantifies pillar-level ESG disclosure and compares state-owned commercial banks (SOCBs) with private joint-stock commercial banks (JSCBs), highlighting implications for governance improvement, regulatory alignment, and policy reform in the banking industry. 3) Methodology: A 103-item disclosure framework was developed by integrating material topics from the MSCI ESG methodology with transparency principles of the GRI Standards. Each criterion was evaluated on a 0–4 scale and applied to the 2024 annual reports of nine banks (five JSCBs; four SOCBs). Descriptive statistics and comparative analyses were conducted to identify inter-pillar disparities and ownership-based differences. 4) Results & Discussion: The average ESG disclosure score was 2.02/4, with Social (2.58) slightly higher than Environmental (2.50), while Governance remained weakest (0.97). JSCBs marginally outperformed SOCBs on the overall score (2.07 vs. 1.94). Strong performance was observed in community relations and financial inclusion, whereas disclosure on remuneration, related-party transactions, and tax transparency was notably limited. 5) Conclusions: ESG disclosure practices in Vietnamese banking are uneven and largely descriptive. Strengthening board-level ESG oversight, publishing measurable ESG targets, and progressively introducing independent assurance—particularly for governance indicators—are recommended to enhance transparency and accelerate the sector’s sustainable transformation.