Vietnam to amend disclosure rules to align listed firms’ ESG reports with global standards

The State Securities Commission of Vietnam (SSC) plans to amend Circular 96 to bring sustainability reporting requirements for listed and public companies closer to international ESG standards, said a senior official.

The Ministry of Finance's Circular 96/2020/TT-BTC guiding information disclosure in the stock market, came into effect on January 1, 2021.

Pham Thi Thuy Linh, head of the SSC’s market development department, said at a forum on green energy transition hosted by The Investor on October 30 that the regulator is reviewing disclosure guidelines to enhance the quality of sustainability reports and improve alignment with global environmental, social and governance (ESG) practices.

"Following the guidelines on green bonds, social bonds, and sustainable bonds launched by the SSC since 2021, last October, the SSC issued a handbook on information disclosure for green bonds so that businesses on this basis have guidelines on information disclosure before and after issuing green bonds, while ensuring international practices and Vietnamese laws," Linh told the forum.

"From there, businesses can access green capital sources at home and abroad. Regarding green bonds, in terms of legal basis, there are complete regulations, including Decree 155/2020 for public issuance, and Decree 153, Decree 65, and Decree 08 for private placement issuance."

Regarding the issue of determining green factors for enterprises to enjoy preferential treatment, Linh explained that the adjusted Law on Corporate Income Tax has included the next preferential policy for green bonds and carbon credits, including issuing enterprises, and at the same time, the first beneficiary investor when the first transaction will receive tax incentives and tax exemption for green bond interest.

The move comes as Vietnam steps up efforts to promote green finance and sustainable investment. The Ministry of Finance (MoF) has already introduced tax incentives for green bonds under Circular 83, including waivers of listing and disclosure fees at stock exchanges and depositories.

Since 2024, the ministry has issued tax incentives for green bonds. Accordingly, enterprises issuing green bonds will be exempted from all service fees collected at the Stock Exchange and Vietnam Securities Depository and Clearing Corporation (VSD) related to information disclosure activities, listing changes, etc.

In addition, regarding capital mobilization through stocks, regulations on information disclosure for listed enterprises and public companies implemented under Circular 96 (2021) have been integrated into annual reports and sustainable development reports.

Every year, the stock exchanges conduct ESG practice scoring of listed enterprises and award prizes to enterprises, thereby encouraging them to be self-aware of moving towards environmental and social standards and good governance practices in parallel with production and business activities.

In addition, the Ho Chi Minh City Stock Exchange (HoSE) has also developed the Corporate Sustainability Index (VNSI) since 2017. This index includes 20 enterprises in the VN100 basket that meet sustainable development standards. These are large-cap companies, leading in their commitment to sustainable development performance among the top listed enterprises.

In the coming time, to further enhance the development of ESG-practicing enterprises, the State Securities Commission will also research to adjust or develop new index sets in the direction of expanding the subjects that perform well in sustainable development but not necessarily enterprises with high capitalization value like enterprises in the current VN100 index.

Regarding the carbon credit market, the draft decree on the carbon credit trading floor, compiled by the Ministry of Finance, will be submitted to the Government soon.

Carbon credits are expected to be traded at the Hanoi Stock Exchange and deposit and payment transactions will be made via VSDC.