Sustainable Accounting in Vietnam: Analysis of the Legal Framework and the Role of Auditing in Implementing the Net Zero 2050 Commitment

Abstract

This research addresses a significant gap in existing Vietnamese studies by analyzing the readiness of the accounting and auditing ecosystem to support the country’s Net Zero 2050 commitment. The primary objective is to evaluate the current legal framework, corporate reporting practices, and the auditing profession’s capacity to handle sustainability disclosures, particularly those related to climate. The study employs a desk research methodology, systematically reviewing legal documents, international standards (such as IFRS S1 and S2), publicly disclosed corporate reports, and relevant scholarly articles. The findings reveal a substantial discrepancy between Vietnam’s ambitious climate goals and its actual capabilities, highlighting an incomplete legal system, low-quality and inconsistent corporate reporting, and an emerging sustainability assurance market lacking mandatory requirements and specialized expertise. These findings are significant as they expose critical institutional and capacity deficiencies that may hinder Vietnam’s progress toward Net Zero. Consequently, the study underscores the urgent need for a national roadmap mandating sustainability reporting and auditing aligned with global standards, alongside substantial capacity-building investments for both companies and auditors to establish a transparent and accountable information infrastructure.