Vietnam moves forward in ASEAN's shift towards sustainable financial reporting
In a recent report released by the Association of Chartered Certified Accountants (ACCA) on July 28, the organisation called for standard-setting bodies to accelerate efforts to develop clear guidance on the treatment of carbon-related instruments. The report, focusing on ASEAN's regulatory readiness for adopting globally aligned, decision-useful sustainability disclosures, highlighted significant gaps in accounting for carbon-related instruments in ASEAN nations, including Vietnam.
The report warns that failure to keep pace with global standards could carry significant implications for Vietnam's export-oriented economy, which is currently establishing a domestic carbon market. According to the ACCA report, only 69% of Vietnam's top 100 listed companies disclosed sustainability data in 2024, down from 87% in 2022.
The study reviewed the financial statements of 300 companies across 46 jurisdictions operating in high-emitting sectors and found that fewer than half of the reviewed companies made any reference to carbon-related instruments in their financial statements. Information on carbon credit usage or offsetting appeared in sustainability reports but was not included in audited financial statements for some companies. Auditor involvement was found to be limited, with a lack of evidence regarding detailed audit review.
The report highlights the relevance of its findings for emerging markets like Vietnam, which is currently establishing a domestic carbon market. The report outlines challenges across the region and provides recommendations to support the transition to the International Sustainability Standards Board's (ISSB) global baseline.
One of the key gaps identified is the lack of uniform sustainability and carbon accounting standards. While ASEAN countries are adopting ESG and sustainability disclosure requirements, implementation remains uneven, and adoption of IFRS Sustainability Disclosure Standards (ISSB Standards) is at different stages among countries, including Vietnam.
The report also points out the fragmented carbon market mechanisms and the limited integration of ESG disclosure with financial accounting as significant issues. Companies, including those in Vietnam, face challenges in simultaneously disclosing financial and climate-related data, a requirement under evolving sustainability frameworks that ensure comparability and completeness.
To address these gaps in ASEAN, particularly Vietnam, the report recommends a building-blocks approach that allows countries to adopt the ISSB framework as a core baseline, while adding localised disclosure requirements. The report also suggests establishing national sustainability intelligence platforms, centralised databases where businesses can access benchmarks and disclosure tools.
The ACCA recommends capacity building across the financial ecosystem, including targeted training and technical guidance for accountants, auditors, and regulators. ASEAN nations such as Indonesia, Malaysia, the Philippines, Singapore, and Thailand have already begun aligning with the ISSB framework.
In summary, bridging these gaps involves coordinated regulatory enhancements, market mechanism development, and capacity-building efforts tailored to ASEAN’s diverse economic and institutional contexts, with Vietnam requiring focused support to align with regional and international standards while fostering credible carbon instrument markets.
[1] ACCA and Adam Smith Business School at the University of Glasgow, "The Accounting of Carbon-Related Instruments: A Review of Financial Statements of Companies in High-Emitting Sectors," July 30, 2025. [2] Singapore-Thailand cooperation on Article 6.2 of the Paris Agreement, press release, August 1, 2025. [3] Vietnam Ministry of Finance, "Sustainability Reporting Mandatory for All Publicly Listed Firms," June 1, 2020. [4] ASEAN Centre for Biodiversity, "ASEAN Biodiversity Outlook 4: Biodiversity and Ecosystem Services in ASEAN," December 2024. [5] ASEAN Sustainable Finance Initiative, "ASEAN Roadmap for Sustainable Finance," October 2023.
- The report from the Association of Chartered Certified Accountants (ACCA) emphasizes the importance of developing clear guidance on the treatment of carbon-related instruments, particularly in ASEAN nations like Vietnam, to ensure their export-oriented economy can keep pace with global standards.
- In the study, it was found that only 69% of Vietnam's top 100 listed companies disclosed sustainability data in 2024, and fewer than half of the reviewed companies made any reference to carbon-related instruments in their financial statements, posing a challenge for simultaneous disclosure of financial and climate-related data.
- To address these gaps in ASEAN, particularly Vietnam, the ACCA recommends a building-blocks approach that allows countries to adopt the International Sustainability Standards Board's (ISSB) framework as a core baseline, while adding localised disclosure requirements, and establishing national sustainability intelligence platforms for businesses to access benchmarks and disclosure tools.
- The report also calls for capacity building across the financial ecosystem in ASEAN nations, including targeted training and technical guidance for accountants, auditors, and regulators, with countries like Indonesia, Malaysia, the Philippines, Singapore, and Thailand already aligning with the ISSB framework.
