Analytical overview of ESG factors influencing approval and funding decisions for startups and SMEs in Viet Nam

NGUYEN THI PHUONG

Email: [email protected]

International School, Viet Nam National University, Hanoi

NGO THUY HA

PhD., International School, Viet Nam National University, Hanoi.

Abstract

In recent years, environmental, social, and governance (ESG) factors have increasingly attracted attention in discussions of corporate finance and investment decision-making. This study provides an analytical overview of ESG factors influencing approval and funding decisions for startups and small and medium-sized enterprises (SMEs) in Viet Nam. Adopting a desk-based analytical overview approach, the paper synthesizes SME financing, rather than conducting empirical testing using primary data. The findings indicate that ESG considerations are discussed in the literature through different conceptual lenses, with governance-related factors such as transparency, internal controls, and managerial accountability most consistently emphasized in financing decisions for startups and SMEs. Environmental and social factors are often framed in relation to regulatory compliance, risk management, and reputational concerns, rather than as direct determinants of funding approval. The review also highlights significant heterogeneity in research methods, ESG measurement approaches, and contextual focus across prior studies, which limits comparability and generalization, particularly for emerging economies such as Viet Nam.

Keywords: ESG factors, funding decisions, startups, SMEs, Viet Nam

(This article was published in the Vietnam Economic&Financial Review, Vol 2, Issue 2, April 2026)

For more details, please click here.