[Research Contribution] Governance Structure and ESG Information Disclosure: A Perspective from Vietnam’s Oil and Gas Industry
9 October, 2026
Keywords: disclosure, corporate governance structure, ESG, oil and gas industry, sustainable development.
The oil and gas industry plays a vital role in Vietnam’s economy and national energy security, while also facing growing expectations regarding environmental, social, and governance (ESG) performance. Amid the ongoing energy transition and the push toward Net Zero commitments, ESG disclosure has become an important measure of corporate transparency and accountability. Against this backdrop, a research team from UEH Mekong, University of Economics Ho Chi Minh City (UEH) examined 34 listed oil and gas companies in Vietnam over the 2017-2024 period to explore the relationship between corporate governance structure and ESG disclosure. The study provides important managerial implications for enhancing corporate transparency and supporting sustainable development.
ESG Disclosure Is Increasing, but Corporate Governance Structures Have Different Impacts
As a strategically important industry closely linked to national energy security, the oil and gas sector contributes an average of 9%-11% of total state budget revenue and 10%-13% of GDP each year. At the same time, industry activities are associated with various challenges related to resource extraction, waste management, community impacts, and occupational safety. Amid climate change and the energy transition, oil and gas companies are under increasing pressure to reduce emissions and strengthen their environmental and social responsibilities.
Effective ESG practices can help companies meet stakeholder expectations while potentially enhancing market value, reducing risks, and improving financial performance. In particular, investors are increasingly looking beyond what companies say about sustainability to assess the tangible outcomes they actually achieve.
Notably, the study finds that ESG disclosure among Vietnamese oil and gas companies has increased over time, rising from an average of 40.931% in 2017 to 48.284% in 2024. Following a slight disruption during 2020-2021 due to the COVID-19 pandemic, the trend toward greater transparency has recovered over the past three years.
Corporate Governance Structure Makes a Difference in ESG Disclosure
The findings show that corporate governance structures do not affect the environmental, social, and governance dimensions in the same way. This suggests that companies cannot rely solely on expanding their governance structures; greater attention should instead be given to the quality and effectiveness of how these structures operate.
Firm size is one of the factors with the clearest positive effects. Larger companies tend to provide better disclosure across all three ESG pillars, supported by greater resources, dedicated personnel, and more systematic control mechanisms.
In addition, gender diversity on the Board of Directors (BOD) has a consistently positive effect on ESG disclosure. This finding suggests that greater female representation on the board may broaden corporate perspectives on issues related to ethics, social responsibility, and the environment.
However, a larger Board of Directors does not necessarily lead to better ESG disclosure. Board size and the proportion of non-executive directors have negative effects on certain dimensions, particularly environmental and social disclosure. An overly large or merely formal governance structure may increase coordination costs, slow decision-making, and hinder the implementation of sustainability commitments.
Another notable finding concerns foreign board members and members with economics and finance expertise. These factors improve transparency in the governance dimension but have an opposite effect on environmental disclosure. This suggests that professional expertise and international experience can help companies standardize organizational structures and management practices, but such capabilities do not necessarily translate into corresponding environmental and social initiatives.
The study also highlights the need to view board meeting frequency with caution. In the current model, a higher number of board meetings is negatively associated with environmental disclosure, potentially because some meetings focus on addressing emerging issues or crises rather than developing long-term green strategies. However, when the effects are considered over time, previous board meetings have a positive impact on the social dimension, suggesting that strategic decisions and discussions may require time to generate meaningful outcomes.
Meanwhile, revenue growth primarily drives disclosure in the governance dimension. This indicates that when companies experience rapid growth, resources tend to be prioritized toward strengthening organizational structures and management systems rather than making corresponding investments in environmental and social ESG reporting systems.
Business Implications
Based on these findings, the study offers several important implications for oil and gas companies:
First, strengthen diversity on the Board of Directors. Female representation is found to have a positive effect on ESG disclosure. Companies should consider gender diversity as a factor that can broaden perspectives and contribute to more inclusive decision-making.
Second, build a leaner and more substantive Board of Directors. Increasing the number of board members does not necessarily improve ESG governance effectiveness. Companies should focus on the quality of coordination, oversight capabilities, and individual accountability rather than simply expanding the size of the governance structure.
Third, leverage professional expertise and international experience in a balanced manner. Board members with economics and finance expertise and foreign members can contribute to stronger corporate governance. However, these capabilities should be linked to specific environmental and social objectives rather than being focused solely on organizational efficiency.
Fourth, shift from compliance-oriented ESG disclosure toward strategic action. Companies should view ESG as an integral part of their long-term development strategies, particularly as the oil and gas industry faces growing demands for energy transition and the implementation of Net Zero commitments.
ESG disclosure is not merely a matter of reporting; it also reflects how a company is governed. An appropriate, diverse, and effective leadership structure can provide a foundation for greater transparency, stronger responsiveness to stakeholder expectations, and greater preparedness for changes brought about by the energy transition. For the oil and gas industry, improving the quality of ESG disclosure must go hand in hand with substantive changes in governance and development strategies. In doing so, companies can contribute to Vietnam’s Net Zero pathway and sustainable development goals.
View the full research paper “Corporate Governance Structure and ESG Disclosure: Insights from Vietnam’s Oil and Gas Industry” HERE.
Authors:Nguyen Hong Nga, Dr. Lam Thi Truc Linh, Nguyen Ngoc Tho – University of Economics Ho Chi Minh City (UEH)
This article is part of the series disseminating research and applied knowledge under the message “For a More Sustainable Mekong,” within the “Research Contribution For All” program conducted by UEH. UEH respectfully invites readers to stay tuned for the next edition of the UEH Research Insights newsletter.
News, photos: Authors, Department of Admissions – Communications UEH Mekong, Department of Communications and Partnerships UEH
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