Vietnam ESG Legal Compliance for Investors | LHD Law Firm

Environmental, Social, and Governance (ESG) criteria are no longer a soft trend for businesses in Vietnam—they are a hard-line legal and financial reality. For foreign investors, navigating this new landscape is essential for mitigating risk, ensuring long-term profitability, and maintaining a social license to operate.

As Vietnam aligns its national strategy with global standards, including its net-zero 2050 commitment, a new wave of regulations is actively impacting business operations. LHD Law Firm provides specialized legal advisory to help investors understand and comply with Vietnam's evolving ESG legal framework.

Why ESG is a Core Legal Issue for Investors

ESG compliance is rapidly moving from a voluntary guideline to a set of binding legal obligations. Investors face pressure from multiple directions:

• Government Regulations: Vietnam has implemented new laws, such as the Law on Environmental Protection, which introduces stricter requirements for environmental permits and impact assessments. The State Securities Commission (SSC) is also mandating E&S (Environmental & Social) reporting for public companies.

• Supply Chain & Trade: International partners, particularly in the EU and North America, impose stringent ESG standards on their supply chains. Non-compliance by a Vietnamese subsidiary can jeopardize global contracts.

• M&A Due Diligence: ESG-related liabilities (e.g., environmental fines, labor disputes, poor governance) are now critical red flags in M&A transactions. Identifying these risks is a non-negotiable part of legal due diligence.

Navigating the Legal Pillars of ESG in Vietnam

LHD Law Firm guides investors through the specific legal requirements of each ESG pillar.

1. Environmental (E): Compliance and Green Investment

Our legal team advises on the full spectrum of environmental regulations to ensure your project is compliant from day one.

• Permitting and Impact Assessments: We guide clients through the complex requirements for obtaining the necessary Environmental Impact Assessment (EIA) approvals and environmental permits.

• Regulatory Compliance: We provide clear analysis of obligations under the Law on Environmental Protection, including waste management, emissions standards, and chemical handling.

• Green Energy Projects: LHD Law Firm has specific experience advising on investments in the renewable energy sector, helping clients navigate legal frameworks for solar and wind projects.

2. Social (S): Managing Labor and Workplace Obligations

The "Social" pillar is primarily rooted in Vietnam's comprehensive Labor Code. We are a market leader in labor law, ensuring your business upholds its social responsibilities and avoids costly disputes.

• Labor Law Compliance: We conduct full audits of labor practices, including employment contracts, working hours, overtime policies, and social insurance contributions.

• Failure to comply with these regulations is one of the most common and significant liabilities for foreign-invested enterprises.

• Occupational Health & Safety (OSH): We advise on legal requirements for creating a safe workplace, managing safety protocols, and reporting workplace accidents.

• Ethical Workforce Management: Our team provides guidance on internal labor rules (ILRs), anti-harassment policies, and compliance with rules on non-discrimination.

3. Governance (G): Ensuring Corporate Transparency

Strong governance is the foundation of any successful investment in Vietnam. This is LHD Law Firm's core practice area. We structure your enterprise to ensure transparency, accountability, and compliance.

• Corporate Structuring: We advise on the optimal legal structure for your investment, ensuring clear lines of management responsibility and shareholder rights as required by the Law on Enterprises.

• M&A Due Diligence: Our due diligence process explicitly searches for governance red flags, including related-party transactions, conflicts of interest, and anti-corruption policy gaps.

• Anti-Corruption & Compliance: We help clients implement internal controls and policies that comply with Vietnam's Anti-Corruption Law, a critical component of the "G" pillar.

How LHD Law Firm Protects Your Investment

Rather than offering broad strategic consulting, we focus on the concrete legal risks and obligations of ESG. Our services for investors include:

• ESG Legal Due Diligence: As part of any M&A or investment transaction, we identify and quantify potential liabilities related to environmental non-compliance, labor disputes, and weak governance.

• Corporate & Labor Compliance Audits: We review your existing operations to identify and remedy legal gaps in your labor contracts, social insurance payments, and environmental permits.

• Advisory for Green-Field Investments: We ensure your new project is structured correctly from the start, with all necessary environmental and operational licenses in place.

• Specialized Advice for Energy Projects: We provide dedicated legal support for investors in Vietnam's growing renewable energy sector.

Don't let legal non-compliance derail your sustainable investment. Contact LHD Law Firm today to ensure your business in Vietnam is secure, compliant, and built for long-term success.