The ESG maturity journey : positioning Vietnam's furniture SMEs for global competitiveness | |
| Author | Dong Van Tiep |
| Call Number | AIT Proj. no.PM-ESG-26-05 |
| Subject(s) | Social responsibility of business--Vietnam Sustainable development--Vietnam Unfinished furniture industry--Vietnam |
| Note | A project report submitted in partial fulfillment of the requirements for the degree of Professional Master in ESG (Environment-Social-Governance) Management |
| Publisher | Asian Institute of Technology |
| Abstract | This study examines the ESG challenges shaping responsible sourcing, compliance, and sustainable growth in Vietnam’s furniture supply chain. The research identifies key barriers hindering ESG adoption, assesses current implementation levels among furniture manufacturers and suppliers, and proposes strategic pathways to strengthen sustainability and competitiveness. Anchored in the principles of the Triple Bottom Line, Stakeholder Theory, and Institutional Theory, the study adopts a qualitative research design based on semi structured interviews with export-oriented furniture manufacturers and key stakeholders. Findings reveal that ESG maturity across the Vietnamese furniture industry remains low and highly uneven, particularly among SMEs. Major environmental risks include limited traceability in wood sourcing, dependence on high-risk timber imports, and weak waste management practices. Social issues are dominated by non-compliance with labor standards, excessive overtime, and insufficient occupational safety systems, while governance challenges stem from fragmented regulatory oversight, inadequate data disclosure, and limited alignment with international ESG frameworks such as GRI, SASB, and TCFD, as well as regional regulatory expectations like the EU’s CSRD. Technological, financial, and organizational constraints further exacerbate these challenges, hindering the transition toward sustainable operations. The study contributes practical insights by developing an ESG risk-mapping framework and a digital twin conceptual model for real-time monitoring of sustainability performance in furniture production. These outputs provide a foundation for policymakers, industry associations, and manufacturers to improve traceability, transparency, and compliance readiness. By highlighting both structural barriers and capability gaps, the study shows that strengthening ESG capacity is not only a compliance requirement, but also an important condition for sustaining Vietnam’s competitiveness in global furniture markets. |
| Year | 2026 |
| Type | Project |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Professional Master in Environment, Social & Government Managment (PMESG) |
| Chairperson(s) | Levermore, Roger |
| Examination Committee(s) | Brubaker, Richard;Shah, Faiz H. |
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