On March 20, 2026, Fair Finance Asia/Oxfam, in partnership with the Management and Sustainable Development Institute (MSD), launched the report “Towards Sustainable Agriculture: Environmental, Social and Governance (ESG) Practices and Access to Sustainable Finance for Small and Medium-Sized Actors in Agricultural Value Chains.”

The report draws on a survey of 97 enterprises and cooperatives operating across agricultural value chains, as well as 15 in-depth interviews with experts and key stakeholders. It assesses the current state of ESG practices and access to sustainable finance among small and medium-sized actors in the agricultural sector, while identifying opportunities and challenges for advancing sustainable and inclusive agricultural development.

Báo cáo ESG trong nông nghiệp

“Most agricultural enterprises have already adopted ESG-related practices. However, the greatest challenge today lies not in awareness, but in implementation capacity and the ability to translate these practices into meaningful and effective transformation. Another paradox is that enterprises demonstrating stronger ESG performance do not necessarily have better access to appropriate support mechanisms, including sustainable finance. Unless this gap is addressed through an ecosystem-wide approach, ESG will struggle to generate impact at scale.

The question, therefore, is not only how businesses should change, but also how we can redesign policies, financial systems, and support mechanisms so that ESG can truly become a driver of sustainable transformation”, Nguyen Phuong Linh, Director of the Management and Sustainable Development Institute (MSD).

Báo cáo ESG trong nông nghiệp

“This study offers highly practical insights, clearly reflecting the inevitable transition of agriculture toward greener and more sustainable models while contributing to Vietnam’s commitment to achieving net-zero emissions by 2050. The report also highlights the critical role of finance as a catalyst for driving this transition, particularly through instruments such as green credit that can help direct investment toward more sustainable agricultural practices”, Nguyen Thu Huong, Senior Program Manager at Oxfam in Vietnam emphasized.

According to the report, green finance has yet to effectively reach the actors that make up the largest share of agricultural value chains: cooperatives and small enterprises. While 54% of the cooperatives and businesses surveyed had adopted at least one sustainable agriculture certification, only one respondent had successfully accessed green finance.

The study found that small actors in agricultural value chains continue to rely primarily on traditional bank credit (57%) and loans from family and relatives (55%), highlighting a significant gap between the adoption of sustainable practices and access to financing that supports such efforts.

The barriers are not primarily related to a lack of ESG practices. Rather, they stem from conventional lending requirements, including collateral demands, limited capacity to develop bankable business plans, and weaknesses in enterprise management and governance systems.

Looking ahead, demand for sustainable finance in agriculture is expected to grow over the next one to three years, particularly for investments in sustainable farming, circular economy models, and compliance with agricultural standards and certification schemes.

These findings underscore the need to review and address existing barriers to finance, ensuring that green credit policies and rural agricultural lending programs can be implemented more effectively in practice.

Developing financial instruments that are tailored to the specific needs and characteristics of cooperatives and small and medium-sized enterprises (SMEs) will be critical to fostering more meaningful, long-term adoption of ESG practices across agricultural value chains.

Báo cáo ESG trong nông nghiệp

Hoang Thu Trang, representing the research team, presented the key findings of the report “Towards Sustainable Agriculture: ESG Practices and Access to Sustainable Finance for Small and Medium-Sized Actors in Agricultural Value Chains.”

More than 80 participants attended the report launch, including representatives from government agencies, financial institutions, agricultural enterprises and cooperatives, as well as experts in sustainable agriculture and green finance. The event provided a platform to discuss the report’s findings and policy recommendations for accelerating the green transition in Vietnam’s agricultural sector.

Following the report presentation, a multi-stakeholder panel discussion on advancing green finance and ESG practices in agriculture explored several key challenges hindering the expansion of sustainable finance in the sector, including:

  • The gap between policy frameworks and on-the-ground implementation;
  • Limited access to finance for cooperatives and small enterprises; and
  • The need for stronger value chain linkages and greater shared responsibility in the adoption of ESG practices.

The discussion underscored the importance of coordinated action among policymakers, financial institutions, businesses, and producer organizations to create an enabling environment for sustainable agricultural transformation.

Báo cáo ESG trong nông nghiệp

Speakers from left to right:

  • Dr. Dinh Thi Hoa – Livelihoods and Agricultural Insurance Specialist, Department of Cooperative Economy and Rural Development, Ministry of Agriculture and Environment;
  • Dr. Bui Thanh Minh – Deputy Director, Office of the Private Economic Development Research Board (Board IV);
  • Nguyen Thi Hai Yen – Financial Institutions Division, Vietnam Bank for Agriculture and Rural Development (Agribank);
  • Nguyen Thu Huong – Senior Program Manager, Oxfam in Vietnam;
  • Phuong Tran – Project Manager, IIX Impact Investment;
  • Tran Van Anh – Vice Director, Management and Sustainable Development Institute (MSD).

The “Promoting Green Investment and Credit for Agribusinesses towards Sustainable Development” (AGREEN) project is funded by Fair Finance Asia and implemented by Oxfam in Vietnam in partnership with the Management and Sustainable Development Institute (MSD). The project aims to promote green investment and sustainable finance in the agricultural sector, contributing to more equitable access to finance for enterprises that are committed to adopting sustainable and environmentally responsible agricultural practices.