Building trust is vital for green finance transition
Vietnam has taken an important policy step with its Green Taxonomy but stronger professional judgement will be required across the financial ecosystem Talking to VIR s Hazy Tran To Quoc Hung country manager of ACCA Vietnam said that Vietnamese businesses need to move beyond a compliance driven approach by building a reliable data foundation
In a world where businesses face multiple reporting requirements, harmonising these frameworks is crucial to avoid the trap of high compliance but low value. Focusing too much on producing documents for various standards can divert resources away from actual business improvements. The key is to start by understanding what truly matters to an organisation and its stakeholders, building a single source of truth for data, and using established frameworks like IFRS S1 and S2 as a foundation.
Addressing the lack of consistent, decision-useful and verifiable data is the most significant gap in current systems for data collection, measurement and verification. This gap must be bridged through investment in data governance, digital reporting systems, common methodologies, and independent verification mechanisms. Accountants and auditors will need to evolve their roles to manage environmental and climate-related data, establish reporting processes, define measurement methodologies, and integrate metrics into decision-making.
As Vietnam aims to become an international financial centre, developing talent capable of navigating sustainable finance and evolving standards will be essential.
Written by urgent.news from Vietnam Investment Review's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
