How Vietnamese enterprises are turning ESG into a growth driver

As sustainability, carbon transparency, and responsible supply chains become increasingly important criteria in the global marketplace, ESG has evolved beyond a market trend into a defining competitive capability for manufacturing and export-oriented businesses.

This transformation is particularly evident in carbon-intensive industries such as steel. Growing international requirements for data traceability, greenhouse gas (GHG) accounting, Product Carbon Footprint (PCF), and the European Union's Carbon Border Adjustment Mechanism (CBAM) are accelerating the transition across the entire value chain. For companies exporting to Europe, the inability to provide verified emissions data or demonstrate supply chain traceability can directly impact market access and long-term competitiveness.

As a leading provider of steel structure solutions for more than 4,000 projects in over 60 countries, ATAD considers ESG not simply a compliance obligation but a strategic foundation for integrating into global supply chains and building sustainable competitive advantage.

Deputy Prime Minister Nguyen Van Thang (left) and VCCI President Ho Sy Hung present the "Green Enterprise - Net Zero in Action 2026" award to Mr. Nguyen Thanh Tam, Deputy General Director of ATAD Steel Structure Corporation.

ESG begins with governance

Within the steel structure industry, ESG challenges extend far beyond internal operations. They increasingly depend on an organisation's ability to standardise and trace data throughout the supply chain.

Life Cycle Assessment (LCA) demonstrates that the majority of environmental impacts originate from upstream raw materials, particularly steel. At the same time, international frameworks such as CBAM, GHG inventories, and Environmental Product Declarations (EPDs) require significantly greater transparency and data verification than ever before.

This requires companies not only to optimise manufacturing operations but also to progressively standardise data, strengthen traceability, and collaborate more closely across their supply networks.

To address these challenges, ATAD has adopted an integrated ESG approach by embedding sustainability directly into its governance and operational systems rather than managing it as a standalone initiative.

The company is progressively standardising enterprise data through its SAP ERP platform, conducting greenhouse gas inventories in accordance with ISO 14064-1:2018, developing Product Carbon Footprints under ISO 14067:2018, and preparing Environmental Product Declarations (EPDs) for its steel structure product portfolio under the International EPD System (IES). These initiatives are implemented in collaboration with internationally recognised verification and certification organisations to ensure transparency, credibility, and data integrity.

From a governance perspective, ESG is integrated into ATAD's enterprise management and risk management framework rather than being treated as an independent program. Environmental, operational, safety, and performance indicators are progressively aligned with the company's KPI, KRIs, and enterprise data management systems to strengthen governance, improve transparency, and support strategic decision-making. This approach enables ESG to become an integral part of day-to-day operations rather than simply a reporting or compliance exercise.

Data: The next competitive advantage

Today, the steel industry's greatest challenge is no longer production cost alone. Increasingly, competitive differentiation depends on the ability to standardise data and provide transparent emissions reporting across the entire value chain.

In response to these challenges, manufacturers are shifting from optimising individual production processes to developing smart factories, integrated data management systems, and automated manufacturing to improve operational efficiency while meeting increasingly demanding ESG expectations.

ATAD is advancing this transformation through the implementation of a highly automated Smart Factory model, integrating robotic welding systems, Lean Manufacturing principles, and advanced digital engineering platforms such as BIM 3D and Tekla Structures to optimise design and enhance manufacturing efficiency.

The company has also deployed SAP S/4HANA, SPM, and real-time operational monitoring systems across its operations to strengthen process control, improve data standardisation, and enhance operational excellence.

Continuous technical improvements further support ATAD's sustainability strategy, including welding technology optimisation to reduce CO₂ consumption, upgraded gas monitoring and control systems, and process optimisation initiatives that streamline manufacturing while increasing productivity.

In parallel, ATAD continues to expand its use of renewable energy through rooftop solar power systems installed across its manufacturing facilities, contributing to improved energy efficiency and long-term operational sustainability.

ATAD Charity Committee – Advancing education, social welfare, and community support for underserved areas.

Sustainability demonstrated through execution

ATAD's operational capabilities and compliance with international standards are reflected in numerous landmark projects both domestically and internationally, including Long Thanh International Airport, Ho Chi Minh City Metro Line No. 1, MRT-7 Philippines, Jackson Generation Power Plant (USA), H2 Green Steel Plant (Sweden), the Vietnam Exhibition Center (VEC), Hoa Phat Dung Quat Steel Complex, and many other large-scale infrastructure, industrial, and energy developments that demand the highest levels of engineering excellence, safety, environmental performance, and international project execution.

ATAD continues to maintain and expand an extensive portfolio of internationally recognised certifications, including AISC, CE Marking, CWB, ASME, IAS AC472, AS/NZS 5131, UKCA, and H-Grade.

ATAD Dong Nai Factory is also recognised as Asia's first steel structure manufacturing facility certified LEED Gold, while its office building has achieved LEED Platinum certification under the U.S. Green Building Council (USGBC) rating system.

People Are the Foundation of ESG

Beyond environmental stewardship and operational excellence, ATAD considers people development a fundamental pillar of its long-term ESG strategy.

With a workforce of more than 2,700 employees, the company is committed to cultivating a professional, disciplined, and continuously learning organisation.

Alongside technical training, ATAD invests in strengthening leadership capabilities, digital competencies, occupational safety, and employees' readiness to meet evolving international standards across offices, manufacturing facilities, and project sites.

Training programs are designed to develop long-term organisational capabilities rather than simply fulfilling immediate operational requirements. A culture of continuous improvement is actively fostered through knowledge sharing, innovation, and proactive adaptation to emerging market trends, technological advancements, and ESG requirements.

Occupational health and safety are managed under internationally recognised management systems, supporting the company's commitment to a disciplined, stable, and low-risk working environment across manufacturing plants and construction sites.

ATAD's "Zero Accident" policy remains a core element of its operational culture.

The company also continues to create lasting social value through the ATAD Charity Committee, which has implemented numerous community development initiatives, including educational support, scholarships, social welfare programs, assistance for disadvantaged communities, and disaster relief activities. These programs are designed to generate sustainable, long-term impact rather than short-term charitable contributions.

Recognition of a long-term strategy

ATAD's commitment to governance excellence, operational performance, and sustainable development continues to receive national recognition.

The company was honoured among the Top 10 Green Enterprises in Vietnam at the World Energy and Environment Forum – Vietnam 2026, organised by the Vietnam Chamber of Commerce and Industry (VCCI) in collaboration with the World Energy Council Vietnam (WEC-VN).

ESG is no longer merely a communications initiative or a compliance requirement—it is rapidly becoming a critical prerequisite for companies seeking to participate in global supply chains.

For ATAD, this recognition is not the destination but a meaningful milestone that acknowledges years of continuous investment in governance systems, data capabilities, and internationally aligned manufacturing excellence.

Building the future competitiveness of Vietnamese industry

As ESG standards increasingly become the common language of global supply chains, competitive advantage in industrial manufacturing will no longer be determined solely by production capacity or cost efficiency. It will increasingly depend on an organisation's ability to manage data effectively, operate transparently, and adapt to evolving sustainability expectations.

By embedding ESG directly into its governance framework and manufacturing operations, ATAD is steadily building the long-term competitiveness of a Vietnamese industrial enterprise on the global stage where sustainability is not merely a responsibility, but a strategic capability that drives future growth.

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