Governance challenges and ESG alignment in a Vietnamese construction materials firm | |
| Author | Vo Trung Tin |
| Call Number | AIT Proj. no.PM-ESG-26-16 |
| Subject(s) | Social responsibility of business--Vietnam--Case studies Building materials industry--Environmental aspects--Vietnam Building materials industry--Social aspects--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 | Small and medium-sized enterprises (SMEs) play a strategically important role in Vietnam’s economy, yet they face growing pressure to integrate Environmental, Social, and Governance (ESG) principles into their governance and operations. While ESG adoption has advanced among large corporations, empirical research on ESG governance in manufacturing SMEs in emerging economies remains limited. This study addresses that gap through an embedded single-case study of BUMATECH, a locally owned construction materials SME operating in a carbon-intensive sector.Data were collected through ten semi-structured interviews with internal and external stakeholders, complemented by internal documents and an analysis of the national regulatory and institutional context. The analysis is informed by Institutional Theory, Stakeholder Theory, and Ethical Climate Theory, and combines qualitative thematic coding with a supporting ESG maturity assessment based on the KPMG ESG Assurance Maturity Index. The study examines how national ESG-related policies shape governance expectations for SMEs (RQ1), how ESG is currently integrated into BUMATECH’s governance structure (RQ2), and how internal capabilities and external pressures affect prospects for ESG governance formalization (RQ3).The findings show that ESG integration at BUMATECH is practice-rich but governance-light: the firm has implemented numerous environmental and social initiatives, yet these remain informal, fragmented, and only weakly embedded in a structured ESG governance framework. Environmental practices are mainly driven by regulatory compliance and operational efficiency, while social and ethical practices are strongly influenced by leadership values and a cohesive ethical climate. Governance emerges as the critical bottleneck, particularly in relation to unclear ESG responsibilities, fragmented data systems, and limited technical capabilities for ESG measurement and reporting.This practice-rich but governance-light profile is evidenced by thematic analysis of 200 interview quotes, revealing high frequency in data gaps (26 quotes) and institutional pressures (30 quotes). BUMATECH represents a novel case as a carbon-intensive SME navigating Vietnam's Net Zero 2050 transition. The study contributes to the ESG and SME governance literature by showing how Institutional, Stakeholder, and Ethical Climate theories can be combined to analyse early-stage ESG governance in a resource-constrained SME in an emerging market. Practically, it proposes a phased, capability-sensitive ESG governance framework that begins with appointing an ESG coordinator, defining a small set of core ESG indicators, and establishing basic data collection processes, before progressing toward more advanced tools such as Environmental Product Declarations (EPDs). This offers SME managers, policymakers, and support organizations a realistic pathway for strengthening ESG governance under Vietnamese conditions. |
| 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) | Galipeau, David |
| Examination Committee(s) | Levermore, Roger;Shah, Faiz.H. |
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