Esg, corporate financial risk, and financial performance of manufacturing firms in vietnam a qualitative comparative analysis Esg, rủi ro tài chính doanh nghiệp và hiệu quả tài chính của các doanh nghiệp sản xuất tại Việt Nam phân tích so sánh định tính
INTRODUCTION
Background of the study
In recent years, Environmental, Social, and Governance (ESG) practices have become increasingly significant as corporations integrate these principles to tackle global challenges In Vietnam, where climate change poses a substantial threat with projected losses of $523 billion by 2050—equivalent to 14.5% of GDP—businesses that adopt ESG standards stand to gain considerable benefits and market opportunities From 2016 to 2030, Vietnam is expected to attract $753 billion in climate investment, bolstered by a recent $15.5 billion commitment from the G7 to reduce coal dependency Additionally, financial institutions have generated $1.7 billion from bonds financing ESG initiatives Notably, in 2021, Vietnam ranked second in ASEAN for green bond issuance, reaching $1.5 billion—five times the amount in 2020—demonstrating a growing commitment to green initiatives and ESG standards.
Several frameworks, including the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB), provide guidelines for Corporate Social Responsibility (CSR) disclosure, evaluating it across three key pillars: environment, social, and governance—often summarized as profit, planet, and people Among these, GRI emphasizes the importance of helping companies effectively disclose their information and data to showcase their commitment to sustainable development and social responsibility, distinguishing it from other frameworks like the AA1000 Series and the UN Global Compact.
Principles From its purpose, GRI guideline encourages companies to have their sustainability performance data verified that most of companies have been concerning and approaching
Recent research highlights a significant link between strong ESG performance and favorable financial results, such as increased return on equity (ROE), return on assets (ROA), reduced cost of capital, and better stock price performance, as evidenced by studies from Bodhanwala and Bodhanwala (2023), Maji and Lohia (2023), Parikh et al (2023), Shanaev and Ghimire (2022), Sinha Ray and Goel (2022), and Wong et al (2021) Conversely, Duque-Grisales and Aguilera-Caracuel (2021) found a negative relationship between overall ESG levels and corporate financial performance (CFP) in Latin American multinational corporations, indicating that the E, S, and G pillars can adversely affect CFP Additionally, Liu et al (2022) demonstrated that varying configurations of ESG pillars among 42 listed new energy companies could lead to both high and low CFP outcomes.
A comprehensive review of over 1,000 studies published between 2015 and 2020 indicates a predominantly positive correlation between ESG factors and financial performance metrics like ROE, ROA, and stock price While most studies demonstrated a positive association, some reported neutral effects, and only 8% found a negative relationship This connection between ESG and firm value aligns with several established theories, including stakeholder theory, shared value concept, legitimacy theory, and resource-based theory.
In addition, companies that lack social responsibility and cause social and environmental controversies also face backlash from investors (Aouadi and Marsat,
The ESG controversy encompasses unsolicited news regarding companies, including scandals and suspicious activities related to their products (Cai et al., 2012; Aouadi and Marsat, 2018) Investor backlash against these ESG issues and CSR concerns leads to significant increases in stock price volatility, thereby heightening corporate risks (Nguyen and Nguyen, 2015) Notably, strong ESG performance can effectively mitigate stock volatility and reduce overall corporate risk.
ESG controversies can significantly influence a company's financial risk, as highlighted by various studies (Jo and Na, 2012; Sassen et al., 2016; Lueg et al., 2019; Shakil, 2022) While these controversies expose companies to heightened financial risks, the specific interactive effects of ESG issues on both financial performance and risk remain inadequately addressed in the existing literature.
The manufacturing sector was selected to study due to its vital role in the economy
In Vietnam, the sector is experiencing heightened competition, prompting a serious engagement in Corporate Social Responsibility (CSR) activities Despite this growing interest, research on CSR performance in the country remains limited To enhance transparency and sustainability in the stock market, the Vietnam Sustainable Development Index (VNSI) was officially launched by the Ho Chi Minh Stock Exchange (HOSE) in July.
In 2017, an index was established to identify the top 20 enterprises excelling in ESG performance, highlighting the investment efficiency of sustainable stocks This initiative has successfully attracted international institutional investment funds that adhere to ESG investment principles.
Manufacturing companies in Vietnam, including those listed in the VNSI index like VNM, PAN, and SBT, are increasingly prioritizing environmental protection and addressing global warming, particularly in the context of challenges posed by the Covid-19 pandemic Despite the industry's reputation for generating significant waste, these companies are demonstrating a commitment to sustainable practices.
19 pandemic, the economic situation has not yet fully recovered
In this research, the author scores 43 listed manufacturing firms in Vietnam from
Between 2017 and 2021, we utilized the longitudinal Fuzzy set Qualitative Comparative Analysis (fsQCA) approach to examine whether each ESG pillar is essential for achieving high corporate financial performance (CFP) and low corporate financial risk (CFR) outcomes Our study also investigates the specific configurations of ESG pillars that lead to high CFP and low CFR results, as well as the stability of these configurations over time.
This article enhances existing literature by examining the relationship between ESG pillars and corporate financial performance (CFP) and corporate financial risk (CFR) from a configuration perspective, rather than solely focusing on their net effects Additionally, the findings provide valuable insights for Vietnamese manufacturing companies to bolster their ESG initiatives, ultimately fostering mutually beneficial outcomes.
This article explores 14 situations that highlight the social and business value associations for organizations It critiques prior research on ESG pillar configurations for relying solely on cross-sectional data, thereby overlooking temporal analysis We enhance the application of the fsQCA method to address causally complex scenarios by utilizing longitudinal datasets.
Research objectives and research question
The objectives of this study as follow:
To evaluate ESG pillars of manufacturing sector in Vietnam
To understand relationships between ESG pillars and CFP, CFR of manufacturing firms in Vietnam
In order to achieve these objects, two questions are addressed as follows:
First, what is ESG pillars of manufacturing sector in Vietnam?
Second, what configuration of ESG pillars leads to high or low CFP, CFR manufacturing sector in Vietnam?
Research method
The researchers utilized a scoring method to assess ESG pillars, which allows for the conversion of qualitative data, such as textual information, into quantitative data for more systematic analysis This evaluation process involves five distinct steps to effectively score the ESG pillars.
Step 1: Read annual reports and sustainable development reports (SDR) of the manufacturing firms and identify statement related to ESG pillars of the GRI framework
Step 2: Match statements in annual reports and SDR to ESG indicators of the GRI framework
Step 3: Scoring each GRI indicator of the ESG pillars for every annual report and SDR between 2017 and 2021 based on disclosure requirement of the GRI
Step 4: Calculate total score of all indictors for each year and average scores for a five-year period
Step 5: Rank ESG pillars of each firm based on their average scores for a five-year period
And then, qualitative comparative analysis, developed by (Ragin and Charles,
In this study, we employed Fuzzy-set Qualitative Comparative Analysis (fsQCA) to investigate the relationship between ESG pillars and corporate financial performance (CFP) and corporate financial risk (CFR) in manufacturing firms Utilizing Fs QCA 4.0 software, we analyzed data by calibrating empirical data through a scoring method, assigning set memberships based on specific criteria Each condition and outcome was coded as 1 if present and 0 if absent, allowing us to create a data matrix that reflects the degree of membership in various sets Subsequently, we constructed a truth table to identify the number of cases for each configuration of conditions and outcomes, followed by logical minimization to derive valid configurations This process enabled us to examine the cause-effect relationships between ESG variables and the outcomes of CFP and CFR.
Research finding
The study ranks ESG pillars of manufacturing firms in Vietnam from 2017 to 2021
In the E pillar, the PAN Group Joint Stock Company (PAN) achieved the highest performance with a score of 632.38% Following closely, Viet Nam Dairy Products Joint Stock Company (VNM) and Thanh Thanh Cong - Bien Hoa Joint Stock Company (SBT) secured the second and third positions with scores of 509.76% and 500%, respectively Conversely, KIDO Group Corporation (KDC) recorded the lowest performance at 0%, while GELEX Group Joint Stock Company (GEX) and Vinh Son - Song Hinh Hydropower Joint Stock Company (VSH) followed with scores of 32.38% and 47.14%.
The PAN Group Joint Stock Company (PAN) achieved the top performance in the S pillar with an impressive score of 1756.67% Following closely were Thanh Thanh Cong - Bien Hoa Joint Stock Company (SBT) and Viet Nam Dairy Products Joint Stock Company (VNM), with scores of 1340% and 1250%, respectively.
In the G pillar rankings, Coteccons Construction Joint Stock Company (CTD) achieved the highest performance with a score of 1250 percent, followed closely by Phu Nhuan Jewelry Joint Stock Company (PNJ) and Viet Nam Dairy Products Joint Stock Company (VNM), both scoring 1200 percent.
Duc Giang Chemicals Group Joint Stock Company (DGC) recorded the lowest ESG indicator score at 323.33, followed by KIDO Group Corporation (KDC) with a score of 348.89, and Vinh Son - Song Hinh Hydropower Joint Stock Company (VSH) at 372.1.
The results indicate a mixed performance among manufacturing firms in Vietnam regarding their ESG (Environmental, Social, and Governance) metrics from 2017 to 2021 Notably, Hoa Phat Group Joint Stock Company (HPG) achieved the most significant improvement in its ESG indicators, while Phu Nhuan Jewelry Joint Stock Company (PNJ) experienced the most considerable decline in its ESG performance during the same period.
The study identifies six causal paths that contribute to high corporate financial performance (CFP) and twelve configurations that result in low corporate financial risk (CFR), highlighting the significant impact of Environmental, Social, and Governance (ESG) factors Notably, the Social (S) pillar emerges as a core condition, working in conjunction with the Environmental (E) and Governance (G) pillars to achieve favorable outcomes in both CFP and CFR.
Structure of study
The research project is structured into five chapters, beginning with Chapter 1, which outlines the study's background, objectives, research questions, methods, findings, and overall structure Chapter 2 offers a literature review that defines ESG pillars and examines their benefits, along with the relationship between these pillars and both Corporate Financial Performance (CFP) and Corporate Financial Reporting (CFR) in the manufacturing sector Additionally, Chapter 3 details the sample and data collection processes.
This article outlines the process of data collection and the techniques used for data analysis Chapter 4 focuses on presenting the research findings, while Chapter 5 discusses these findings, draws conclusions, addresses the study's limitations, and offers implications for future research.
LITERATURE REVIEW
Environment, Social and Governance (ESG)
ESG, which stands for environmental, social, and governance standards, guides stakeholders in assessing how companies manage risks and opportunities The environmental aspect focuses on the energy consumption and waste production of a business, as well as the natural resources required for operations The social dimension emphasizes the importance of relationships and reputation built through business interactions within communities Lastly, the governance pillar involves the systems of controls and practices that ensure effective decision-making for the overall benefit of the organization.
Measuring value beyond financial metrics is crucial for companies aiming for long-term success and resilience The ESG framework allows executives to assess performance from a fresh perspective, focusing on three key pillars First, by integrating ESG risks into reporting, companies can better identify and mitigate long-term risks, leading to more informed decision-making and preparedness for market changes Second, understanding external factors enhances operational efficiency, resulting in cost reductions over time Third, strong stakeholder engagement is fostered through ESG initiatives, as companies that recognize their societal impact build better relationships with customers, employees, investors, and the community Ultimately, a commitment to ESG creates new opportunities for product development and innovation.
19 partnerships, and business models that focus on sustainability and social impact This leads to greater potential for innovation, collaboration, and growth (Emerick,
The Global Reporting Initiative (GRI) is recognized as the leading global standard for sustainability information disclosure, established in 1997 by a coalition of private and public organizations as a non-profit entity GRI aims to provide a comprehensive framework for sustainability reporting that is applicable to companies worldwide Central to this framework are the Sustainability Reporting Guidelines, which serve as the foundation for effective sustainability information disclosure, promoting transparency and accountability in corporate practices.
In June 2000, the GRI committee introduced its inaugural sustainability reporting guidelines, known as the GRI Standards These standards empower organizations to transparently report their significant economic, environmental, and social impacts, including human rights considerations and management practices By adopting these guidelines, organizations can enhance their accountability and foster greater transparency regarding their impacts.
This study utilizes GRI 2 - General Disclosures 2021 for the Governance (G) pillar, GRI 300 - 2016 for the Environment (E) pillar, and GRI 400 – 2016 for the Social (S) pillar GRI 2 provides essential disclosures about an organization’s reporting practices, governance, and policies GRI 300 offers guidance on identifying material topics and includes disclosures related to the organization’s process for determining and managing these topics Meanwhile, GRI 400 focuses on employment, detailing an organization’s strategies for hiring, recruitment, retention, and related practices.
The GRI Standards emphasize the significance of transparent reporting on employment and working conditions, both within an organization and its supply chain These guidelines highlight the need for reports that are relevant to the company's operations and stakeholders Additionally, the analysis will delve into the specific GRI indicators related to Environmental, Social, and Governance (ESG) aspects.
GRI 2: General Disclosures 2021 include disclosures for organizations to provide information on their reporting methods; activities and workers; administration; strategies, policies and practices; and stakeholder engagement This information provides insight into the profiles and sizes of organizations and provides context for understanding their impact (www.globalreporting.org, 2023) In this study, I mainly focus on Governance which contains thirteen disclosures, provide information about the organization’s governance structure, composition, roles, and remuneration
Disclosure 2-9 Governance structure and composition
Disclosure 2-10 Nomination and selection of the highest governance body
Disclosure 2-11 Chair of the highest governance body
Disclosure 2-12 Role of the highest governance body in overseeing the management of impacts Disclosure 2-13 Delegation of responsibility for managing impacts
Disclosure 2-14 Role of the highest governance body in sustainability reporting
Disclosure 2-16 Communication of critical concerns
Disclosure 2-17 Collective knowledge of the highest governance body
Disclosure 2-18 Evaluation of the performance of the highest governance body
Disclosure 2-20 Process to determine remuneration
Disclosure 2-21 Annual total compensation ratio
Table 2 1 Thirteen disclosures of Governance in GRI 2 - General Disclosures 2021 standard
Understanding how an organization integrates its impacts on the economy, environment, and human rights into its strategy and operations is crucial These disclosures provide essential insights into the organization's overall influence on society and its commitment to sustainable practices.
It deals with how governance bodies are established and how well equipped they are
21 to oversee the management of organizational impacts It also facilitates an understanding of the roles and responsibilities of regulators for these impacts (www.globalreporting.org, 2023)
The GRI 300 outlines essential disclosures for organizations to report on their processes for identifying and managing environmental topics It encompasses both renewable and non-renewable materials used in the production and packaging of products and services, highlighting the significance of material types, including virgin and recycled inputs Understanding the materials utilized by an organization reveals its reliance on natural resources and the potential impact on their availability Additionally, an organization's commitment to resource conservation is reflected in its strategies for recycling, reusing, and recovering materials, products, and packaging This study employs seven GRI indicators to evaluate the Environmental pillar.
Disclosure 301-1 Materials used by weight or volume Disclosure 301-2 Recycled input materials used Disclosure 301-3 Reclaimed products and their packaging materials
This article discusses key disclosures related to energy consumption and efficiency within organizations Disclosure 302-1 focuses on energy consumption within the organization, while Disclosure 302-2 addresses energy consumption outside the organization Disclosure 302-3 highlights energy intensity metrics, and Disclosure 302-4 emphasizes efforts to reduce energy consumption Furthermore, Disclosure 302-5 examines reductions in energy requirements for products and services, contributing to overall sustainability goals.
Disclosure 303-1 Interactions with water as a shared resource Disclosure 303-2 Management of water dischargerelated impacts Disclosure 303-3 Water withdrawal
Disclosure 303-4 Water discharge Disclosure 303-5 Water consumption G304: Disclosure 304-1 Operational sites owned, leased, managed in, or adjacent to,
Biodiversity protected areas and areas of high biodiversity value outside protected areas
Disclosure 304-2 Significant impacts of activities, products and services on biodiversity
Disclosure 304-3 Habitats protected or restored Disclosure 304-4 IUCN Red List species and national conservation list species with habitats in areas affected by operations
Disclosure 305-1 Direct (Scope 1) GHG emissions Disclosure 305-2 Energy indirect (Scope 2) GHG emissions Disclosure 305-3 Other indirect (Scope 3) GHG emissions Disclosure 305-4 GHG emissions intensity
Disclosure 305-5 Reduction of GHG emissions Disclosure 305-6 Emissions of ozone-depleting substances (ODS) Disclosure 305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions
Disclosure 306-1 Waste generation and significant waste-related impacts Disclosure 306-2 Management of significant wasterelated impacts Disclosure 306-3 Waste generated
Disclosure 306-4 Waste diverted from disposal Disclosure 306-5 Waste directed to disposal G308:
Disclosure 308-1 New suppliers that were screened using environmental criteria
Disclosure 308-2 Negative environmental impacts in the supply chain and actions taken
Table 2 2 Seven GRI indicators of GRI 300 -2016 standard
This standard is published by the Global Sustainability Standards Board (GSSB) GRI 400
In 2016, organizations were required to disclose information regarding their social responsibility impacts and management strategies For instance, the employment relationship, which defines the legal obligations and rights between employees and organizations, plays a crucial role in determining the applicability of employment or labor law versus commercial law This study utilizes eighteen GRI indicators to assess the social pillar of corporate responsibility.
GRI 401: Employment Disclosure 401-1 New employee hires and employee turnover
Disclosure 401-2 Benefits provided to full-time employees that are not provided to temporary or parttime employees
Disclosure 402-1 Minimum notice periods regarding operational changes
Disclosure 403-1 Occupational health and safety management system
Disclosure 403-2 Hazard identification, risk assessment, and incident investigation
Disclosure 403-3 Occupational health services Disclosure 403-4 Worker participation, consultation, and communication on occupational health and safety Disclosure 403-5 Worker training on occupational health and safety Disclosure 403-6 Promotion of worker health
Disclosure 403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships Disclosure 403-8 Workers covered by an occupational health and safety management system
Disclosure 403-9 Work-related injuries Disclosure 403-10 Work-related ill health GRI 404: Training and
Disclosure 404-1 Average hours of training per year per employee Disclosure 404-2 Programs for upgrading employee skills and transition assistance programs
Disclosure 404-3 Percentage of employees receiving regular performance and career development reviews
Disclosure 405-1 Diversity of governance bodies and employees Disclosure 405-2 Ratio of basic salary and remuneration of women to men GRI 406: Non- discrimination
Disclosure 406-1 Incidents of discrimination and corrective actions taken
Disclosure 407-1 highlights operations and suppliers where the rights to freedom of association and collective bargaining may be compromised GRI 408 addresses the significant risk of child labor in certain operations and suppliers, while GRI 409 focuses on the prevalence of forced labor These disclosures are essential for identifying and mitigating risks related to labor rights within the supply chain.
Disclosure 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor
GRI 410: Security Practices Disclosure 410-1 Security personnel trained in human rights policies or procedures GRI 411: Rights of
Disclosure 411-1 Incidents of violations involving rights of indigenous peoples
Disclosure 412-1 Operations that have been subject to human rights reviews or impact assessments
Disclosure 412-2 Employee training on human rights policies or procedures
Disclosure 412-3 Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening
Disclosure 413-1 Operations with local community engagement, impact assessments, and development programs
Disclosure 413-2 Operations with significant actual and potential
24 negative impacts on local communities GRI 414: Supplier Social
Disclosure 414-1 New suppliers that were screened using social criteria
Disclosure 414-2 Negative social impacts in the supply chain and actions taken
GRI 415: Public Policy Disclosure 415-1 Political contributions
GRI 416: Customer Health and Safety
Disclosure 416-1 Assessment of the health and safety impacts of product and service categories
Disclosure 416-2 Incidents of non-compliance concerning the health and safety impacts of products and services
Disclosure 417-1 Requirements for product and service information and labeling
Disclosure 417-2 Incidents of non-compliance concerning product and service information and labeling
Disclosure 417-3 Incidents of non-compliance concerning marketing communications
GRI 418: Customer Privacy Disclosure 418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data
Table 2 3 Eighteen GRI indicators of GRI 400 -2016 standard
2.1.4 Theories on ESG pillars and CFP, CFR
Lenders are increasingly prioritizing ESG performance and disclosure in their decision-making processes, as firms that excel in these areas tend to enjoy a lower cost of debt (Eliwa et al., 2021) This focus on ESG not only provides stakeholder-oriented advantages but also enhances investment returns and mitigates risks for institutional investors (Sherwood and Pollard, 2018) Additionally, improved performance in ESG indices has bolstered trust in corporate performance (Bhattacharya and Sharma, 2019) However, it is important to note that a negative correlation exists between ESG indices and stock price crash risk (Feng et al., 2022).
The effectiveness of a company's ESG (Environmental, Social, and Governance) practices is evident in its commitment to environmental protection during production, active social responsibility initiatives, and strong corporate governance structures These ESG efforts enhance communication with external stakeholders, reduce information asymmetry, and foster greater trust in the company.
2021) According to the signaling theory, the disclosure of ESG information by an
Establishing a strong social image through environmental protection initiatives enhances a company's credibility and transparency, positively impacting its corporate reputation (Tamimi and Sebastianelli, 2017) This proactive approach reduces transaction risks associated with asymmetric information and allows customers to gain deeper insights into the company's operations, fostering mutual trust and ultimately enhancing the company's commercial credibility (Zhang et al., 2020).
RESEARCH METHOD
Sample and data collection
A selection of 43 listed manufacturing firms in Vietnam was made, focusing on those on the Ho Chi Minh Stock Exchange (HOSE) that are part of the VN100 and VNSI These firms were chosen due to their commitment to transparency, as they have reported Environmental, Social, and Governance (ESG) information in their annual reports and Sustainability Disclosure Reports (SDR).
I aimed to gather data from 215 annual reports and financial statements of 43 manufacturing firms in Vietnam covering the period from 2017 to 2021 However, the PetroVietnam Power Corporation (POW) and VICEM Ha Tien Cement Joint Stock Company (HT1) did not publish their annual reports for 2017 Additionally, two other annual reports were missing from the total collection Consequently, data was ultimately collected from 213 annual reports.
Measurement
3.2.1.1 Scoring method using GRI standard
Content analysis, as defined by Krippendorff (1980), involves systematic procedures for examining the content of written documents This technique gathers data by codifying qualitative information from anecdotal and literary sources into categories, enabling the development of quantitative scales of varying levels (Abbott and Monsen, 1979).
Scoring method was applied to convert texts from annual report into numeric index in order to maintain and ensure the quality and fairness of disclosure This method
The implementation of a scoring system in ESG research has proven effective for evaluating the quality of sustainability reporting This study introduces a minimum disclosure requirement, assigning fixed weights to indicators to create a standardized index for comparison For instance, in GRI 301 – Material, companies receive a score of 100% for fully meeting all three disclosure requirements, while a lack of disclosures results in a score of 0%.
Dissanayake et al (2016) developed a comprehensive scoring model to evaluate sustainability reporting in Sri Lanka, focusing on key factors influencing its development This model assesses both the quality and quantity of sustainability reports by scoring companies based on seven numerical scales in the Environmental (E) pillar, eighteen in the Social (S) pillar, and ten in the Governance (G) pillar, all derived from established literature Notably, the framework includes an "experience" criterion that differentiates first-time sustainability reporters from those with a history of disclosures, a feature absent in other models This study emphasizes that more sustainability information is now included in annual reports rather than being confined to monthly reports, marking a significant advancement in reporting practices.
Both studies utilize sustainability reporting guidelines in their scoring frameworks, leveraging the benefits of internationally standardized guidelines that can be adapted for various organizations while ensuring the completeness and quality of sustainability reports Consequently, our research employs the GRI sustainability reporting guidelines as a scoring method, focusing on the reporting indicators found in the annual reports to assess the reporting activities of Vietnamese manufacturing enterprises The details of the scoring scheme will be elaborated upon below.
Step 1: Read annual reports of the manufacturing firms and identify statement related to ESG pillars of the GRI framework
Step 2: Match statements in annual reports to social indicators of the GRI framework For example, the statement “Do not use child labor, promote education and children's rights In order to promote progress as well as promote social justice, the policy to encourage learning and protect disadvantaged groups, specifically children, is one of the key goals that PNJ's leadership is deeply concerned about.” related to the item of indicator GRI - 408: Child Labor in the GRI 4 that requires companies to report “Measures taken by the organization in the reporting period intended to contribute to the effective abolition of child labor.”
Step 3: Scoring each GRI indicator of the ESG pillars for every annual report between 2017 and 2021 based on disclosure requirement of the GRI A GRI indicator includes disclosures and each disclosure includes items (requirements) Therefore, the score of each disclosure, each GRI indicator and each of ESG pillar was calculated by the following formula:
Disclosure score = A number of item was been disclosed/ Total items
GRI indicator score = Sum of disclosure score/ A number of disclosure
Each of ESG pillar score = Sum of GRI indicator score
Each item was given a certain score based on extent to which each item was disclosed, the maximum each of GRI indicator score is 10 point
The G301 indicator for Saigon Beer – Alcohol – Beverage Corporation (SAB) received a score of 3.3 out of 3, as it disclosed the weight of materials but failed to provide information on the volume of recycled input materials or the reclamation of products and their packaging Additionally, the G2-16 indicator addresses the communication of critical concerns.
At PetroVietnam Power Corporation (POW), the G2-16 indicator was assessed with a total score of 5 points, based on two items The first item, which evaluates the communication of critical concerns to the highest governance body, received a score of 50% due to the reported meeting processes Conversely, the second item, which pertains to the total number and nature of critical concerns communicated during the reporting period, scored 0 points as POW did not disclose any relevant information Consequently, the overall score for indicator G4-SO3 stands at 5 points.
Step 4: Calculate total score of all indicators for each year and average scores for a five-year period
Step 5: Rank ESG pillars of each firms based on their average scores for a five-year period
Return on assets (ROA) is an indicator of how profitable a company is relative to its assets or the resources it owns or controls
Investors can use ROA to find good stock opportunities because the percentage shows how efficient a company is at using its assets to generate profits
An ROA that rises over time indicates the company is doing a good job of increasing its profits with each investment dollar it spends
A falling ROA indicates the company might have over-invested in assets that have failed to produce revenue growth, a sign the company may be trouble (MCCLURE, 2021)
ROA was calculated by the following formula: (accountingcorner, 2023)
ROA (Return on Assets) = Net Income / Average Total Assets
The indicators of net income and average total assets were showed on consolidated financial statements of 43 manufacturing firms from 2017 to 2021
Debt-to-equity (D/E) ratio compares a company’s total liabilities with its shareholder equity and can be used to assess the extent of its reliance on debt
Among similar companies, a higher D/E ratio suggests more risk, while a particularly low one may indicate that a business is not taking advantage of debt financing to expand
Investors will often modify the D/E ratio to consider only long-term debt because it carries more risk than short-term obligations (FERNANDO, 2023)
D/E was calculated by the following formula:
Debt/Equity = Total liabilities / Total shareholders’ equity
The indicators of total liabilities and total shareholder’s equity were showed on consolidated financial statements of 43 manufacturing firms from 2017 to 2021.
Qualitative Comparative Analysis using Fs QCA 4.0
3.3.1 Fuzzy set Qualitative Comparative Analysis (FsQCA) method
Non-neutral scientists utilize both symmetric and asymmetric data analysis tools to predict outcomes, reflecting theoretical perspectives and analytical processes (Gigerenzer, 1991; Woodside, 2019) Qualitative Comparative Analysis (QCA) is an asymmetric technique that merges qualitative insights with quantitative methods, allowing for the analysis of large datasets while being more general than traditional symmetric approaches (Ragin, 2014) Unlike conventional variance-based quantitative methods that rely on null hypothesis significance testing (NHST), QCA enables the formulation of logically simplified statements that capture various combinations of conditions leading to specific outcomes These configurations represent synergistic causal variables that illustrate observed results or outcomes of interest.
QCA: crisp set QCA (csQCA), multi-value QCA (mvQCA), and fuzzy-set QCA (fsQCA)
FsQCA employs a case-based comparison approach by integrating fuzzy set variables, allowing for a nuanced representation of data within a 0–1 range This method surpasses the limitations of other QCA variants like csQCA and mvQCA, leading to a growing interest among researchers due to its ability to provide richer insights into data FsQCA is widely applicable across various fields, including education, data science, online marketing, learning analytics, and human behavior analysis It effectively uncovers specific relationships between configurations and potential solutions that lead to desired outcomes Key advantages of fsQCA include revealing causal complexity, converting qualitative data into fuzzy sets, presenting results as rules, identifying necessary factors, and clarifying both necessary and sufficient conditions for achieving results.
Researchers can identify various propositions among cases to ensure consistent outcomes, as a specific result requires the presence of necessary conditions within the configuration Conversely, a sufficient condition alone can produce the desired result (Ragin, 2009) This study utilizes fuzzy set Qualitative Comparative Analysis (fsQCA) to explore the combinations of necessary and sufficient conditions that influence successful risk determination mechanisms.
3.3.2 Data analysis using FsQCA with Fs QCA 4.0
FsQCA 4.0 updated in 2022 is one of the most widely used software in scientific research for data matrix analysis for QCA FsQCA 4.0 analyzes both clear and
To analyze data using FsQCA 4.0, follow three essential steps: first, convert raw data into a data matrix through calibration; next, upload the finalized data matrix to create a truth table; and finally, perform logical minimization on the truth table to derive meaningful insights.
This study examines sets as groups of cases characterized by specific outcomes and conditions of interest, focusing on the critical roles of the outcome, condition, and case in the research process The research design outlines the objectives and methodologies for analysis Our investigation aims to analyze the relationship between ESG pillars and CFP, CFR indicators To achieve this, we employ fuzzy-set QCA to both test existing theories and develop new insights into the interrelations between conditions and outcomes.
ESG scores are determined by evaluating corporate responsibility reports, annual reports, and ESG news stories, creating a metric system based on over 120 indicators The Environmental (E) pillar assesses factors like air quality, climate change, and ecological impact, while the Social (S) pillar focuses on community engagement, customer relations, ethics, and charitable contributions The Governance (G) pillar examines aspects such as board independence, remuneration structures, and shareholder rights.
B, we present the detailed indicators of ESG pillars The ESG pillars are scored on a scale of percentages, with higher scores indicating better performance (Liu et al., 2022)
Based on prior research, we utilized Return On Assets (ROA) as the metric for assessing Corporate Financial Performance (CFP), a common approach in studies examining the relationship between Environmental, Social, and Governance (ESG) factors and CFP Additionally, we employed the Debt-to-Equity ratio (D/E) to evaluate Corporate Financial Risk (CFR).
This paper investigates the impact of various configurations of Environmental, Social, and Governance (ESG) pillars on Corporate Financial Performance (CFP) and Corporate Financial Risk (CFR) in manufacturing companies listed in Vietnam, utilizing a linear fuzzy-set Qualitative Comparative Analysis (fsQCA) vertical approach The conceptual model is illustrated in Figure 3.1 To assess the stability of these effects over time, longitudinal data was employed for a comprehensive profile analysis.
In our study, we built upon prior research that utilized cross-sectional data to examine ESG pillar configurations We aimed to identify consistent configurations that yield high corporate financial performance (CFP) and low corporate financial risk (CFR) by analyzing and comparing the profiles across different timeframes.
This study investigates the influence of various ESG pillar groups on the Corporate Financial Performance (CFP) and Corporate Financial Resilience (CFR) of publicly listed manufacturing companies over time We employ a longitudinal fuzzy set Qualitative Comparative Analysis (fsQCA) methodology, which entails segmenting the overall study period into distinct phases and performing individual fsQCA analyses for each phase.
The fsQCA approach, introduced by Ragin (2009), has gained significant attention for its ability to support case studies involving small to medium sample sizes (Aversa et al., 2015; Zhu et al., 2021) This method employs configuration analysis to systematically explore the interactions between antecedent variables that lead to specific outcomes (Llopis-Albert et al., 2021) Unlike traditional regression analysis, fsQCA uncovers causal complexity and highlights multiple concurrent mechanisms among variables Before outlining the steps of fsQCA, it is essential to clarify two key parameters: consistency and coverage, which are defined by specific equations (Liu et al., 2022).
In the analysis of membership degrees, the notation indicates the degree of a single factor's membership within the combination U, while signifies the membership degree of that factor in the resulting set V The concept of consistency is essential for assessing the degree of causality among the conditions in the combination, providing a framework for understanding the relationships between factors.
Figure 3.1 Conceptual model of the ESG pillars' configuration impacting CFP (Liu et al., 2022)
Figure 3 2 Conceptual model of the ESG pillars' configuration impacting CFP (Liu et al., 2022)
In a range of values from 0 to 1, a consistency level of 1 signifies that U is entirely subordinate to V Coverage reflects how effectively a combination of conditional variables can elucidate causal pathways, with higher coverage indicating a stronger explanatory power of causality.
Then, we describe the main steps of FsQCA as follows:
Step 1: Selection of cases, conditions and outcomes from available variables in this research The dataset file needs to be in “comma-separated values” (.csv) format that can run by FsQCA
Step 2: Choosing thresholds for direct calibration by using SPSS To calibrate the data, we can choose the values 0.95, 0.50, 0.05 as the three thresholds, which will convert the data into a log odds index with all the values between 0 and 1 We do not use exactly 1 and 0 as breakpoints because the two member points will correspond to positive and negative infinity respectively, for the log of the odds (Ragin, 2008) To find which values in our data set correspond to 0.95, 0.50, and
Relationship between ESG and CFP, CFR
How do different configurations of ESG pillars impact CFP, CFR?
Figure 3 3 Basic steps in fsQCA
Data calibration
Descriptive statistics for the variables (running by SPSS) are in Table 4.1
Table 4 1 Three thresholds of variables
The fsQCA analysis procedure distinguishes itself from regression analysis by focusing on aggregates rather than variables (Schmitt et al., 2017) A crucial step in this process is data correction, which involves calibrating variables to ensure they represent meaningful sets This calibration transforms conditions (e.g., ESG pillars) and results (e.g., CFP, CFR) into fuzzy membership scores ranging from 0 to 1, following specific rules (Schneider and Wagemann, 2012) Common methods for data calibration include indirect and direct calibration, with the latter being preferred for its rigor, as it establishes three anchor points—full membership, crossover, and full non-member scores—based on the researcher's external knowledge (Pappas and Woodside, 2021) It is essential to avoid cases with a conditional fuzzy membership of 0.5 during calibration, as they may be excluded from analysis Based on prior studies and descriptive statistics, this paper sets the 95th percentile, 50th percentile, and 5th percentile as thresholds for full member scores, crossover points, and non-full members, respectively, with data calibration details provided in Table 4.1.
Analysis of necessary conditions
Year Condition High ROA Low ROA
Table 4 2 Analysis of the necessary conditions on high ROA and low ROA outcomes
Table 4 3 Analysis of the necessary conditions on high D/E and low D/E outcomes
Note: E1, S1, G1 are data calibration “∼” indicates the absence of the condition
Before creating the truth table for conditional configuration analysis, researchers must verify the necessity of each ESG pillar for achieving high or low CFP and CFR outcomes If an ESG pillar consistently appears alongside high or low CFP or CFR results, it is deemed necessary A consistency threshold exceeding 0.9 indicates that a condition is essential for an outcome (Fiss, 2011) Additionally, coverage is crucial for conditions that meet the consistency criterion, typically exceeding 0.5, which reflects their empirical relevance (Rihoux and Ragin, 2008; Schneider and Wagemann, 2012) If an ESG pillar is identified as a necessary condition, it should be included in the subsequent full analysis of the conditional configuration.
The analysis presented in Table 4.2 indicates that the consistency of conditions necessary for achieving high Corporate Financial Performance (CFP) results falls below the threshold of 0.9 Similarly, the evaluation of conditions for low CFP results does not necessitate exceeding this threshold The findings reveal that none of the Environmental, Social, and Governance (ESG) pillars are essential for either high or low CFP outcomes, suggesting that the CFP of new energy companies may be influenced by the combined effects of these three pillars Consequently, we will proceed with a completeness analysis of the conditional configuration in the subsequent section.
Sufficiency analysis of conditional configuration
4.3.1.1 High ROA configurations of ESG pillars
Figure 4 1 Truth table of high ROA outcome in 2017
Figure 4 2 Truth table of high ROA outcome in 2018
Figure 4 3 Truth table of high ROA outcome in 2019
Figure 4 4 Truth table of high ROA outcome in 2020
Figure 4 5 Truth table of high ROA outcome in 2021
4.3.1.2 Low D/E configurations of ESG pillars
Figure 4 6 Truth table of low D/E outcome in 2017
Figure 4 7 Truth table of low D/E outcome in 2018
Figure 4 8 Truth table of low D/E outcome in 2019
Figure 4 9 Truth table of low D/E outcome in 2020
Figure 4 10 Truth table of low D/E outcome in 2021
4.3.2 Analysis of conditional configuration of ESG pillars and high CFP, low CFR
After calibration based on scrip options in FsQCA, the authors collected data results for high ROA and low D/E from 2017 to 2021
The financial performance (CFP) and capital structure (CFR) of publicly traded manufacturing companies are influenced by various combinations of Environmental, Social, and Governance (ESG) pillars To identify the specific ESG combinations that lead to high CFP and low debt-to-equity (D/E) ratios, we conduct a conditional configuration adequacy analysis This comprehensive analysis produces three types of outputs: complex solutions, parsimonious solutions, and intermediate solutions, with complex solutions representing outcomes that do not rely on any logical residuals.
Logical residuals, which lack empirical examples, are not subject to counter-analysis and often encompass multiple configurations and premises Parsimonious solutions aim to include all logical residuals while minimizing the number of configurations and conditions Intermediate solutions are effectively constructed by integrating remaining terms that align with realistic expectations This study, referencing Fiss (2011), identifies core conditions from both intermediate and reduced solutions, while boundary conditions are defined as those present only in intermediate solutions The findings from analyzing high CFP and low D/E profiles of firms across various time frames are presented in Tables 4 and 5, utilizing fsQCA 4.0 software.
Table 4 4 High ROA configurations of ESG pillars identified by the longitudinal fsQCA from 2017 to
The article outlines the presence and absence of core conditions using a notation system, where ● signifies the presence of a core condition and ⊗ indicates its absence Empty cells denote that a condition does not influence a specific configuration Additionally, E1, G1, and S1 were utilized for data calibration purposes.
In Table 4.4, we identify six configurations that generate high CFP during 2017–
2021 Configuration “1” contains the causal configuration E1*~S1*G1, where the
The symbol “∼” signifies the absence of a condition, while the symbol “*” represents AND logic In configuration “1,” the E1 and G1 pillars are essential for achieving a high CFP, whereas S1 does not play a core role in this configuration.
In 2017, manufacturing enterprises demonstrated that strong performance in the E1 and G1 pillars can lead to high CFP results, even when the S1 pillar is weak Conversely, configuration “2” reveals that the absence of the E1 pillar and the presence of the S1 pillar are essential for achieving high CFP outcomes, while the G1 pillar is not significant in this scenario In 2018, configuration “2” further illustrates that manufacturing companies can still achieve high CFP results despite underperforming in the G1 pillar, as long as they excel in the S1 pillar.
Configuration "3" demonstrates the causal relationship of S1*~G1, highlighting that the S1 pillar is essential for achieving high ROA, while the G1 pillar is absent In contrast, configuration "4" reveals that the E1 pillar serves as a core condition for high ROA, with both S1 and G1 pillars missing Furthermore, configurations "5" and "6" share the same structure of ~E1*S1*~G1, indicating that the S1 pillar is crucial for generating high CFP outcomes.
Table 4.5 outlines cases associated with high CFP, highlighting those with antecedent and outcome memberships exceeding 0.5 Notably, Refrigeration Electrical Engineering Corporation (REE) consistently appears in configurations “2, 3, 5, and 6,” where S1 pillar serves as a core condition and plays a crucial role in achieving high CFP.
Configuration Year ID of the covered cases
SCS (0.76), PLX (0.76), REE (0.75), HPG (0.66), VGC (0.62), HSG (0.51)
HPG (0.86), AAA (0.75), HT1 (0.66), PC1 (0.66), PVT (0.66), SCS (0.66), REE (0.62), SAB (0.53)
2020 NT2 (0.81), BWE (0.71), TMS (0.58), GAS (0.53), PVD (0.53)
Table 4 5 Cases covered by configuration on high ROA outcome
Table 4.6 presents the configurations of ESG pillars that generate low CFR (i.e., configurations 1 to 12) in each time window from 2017 to 2021 For configuration
The frequent occurrence of "4" within the time window highlights that the E pillar is crucial for maintaining a low debt-to-equity (D/E) ratio, suggesting strong performance in this area However, inadequate performance in the S and G pillars can negatively impact the company's overall corporate financial rating (CFR).
Table 4 6 Low D/E configurations of ESG pillars identified by the longitudinal fsQCA
The article outlines the presence and absence of core conditions using specific indicators: ● signifies the presence of a core condition, while ⊗ denotes its absence Additionally, empty cells indicate that certain conditions do not influence specific configurations Data calibration was conducted using E1, G1, and S1.
Configuration Year ID of the covered cases
KDC (0.95), DHC (0.95), POW (0.95), CTD (0.95), GEX (0.95), HT1 (0.95), DGC (0.92), VSH (0.92), HSG (0.8), PPC (0.8), PLX (0.78), DBC (0.75), GEG (0.75), SCS (0.75), PHR (0.73), REE (0.73), VGC (0.73), DCM (0.68), HPG (0.68), IMP (0.66)
PNJ (0.97), SBT (0.96), VNM (0.94), PAN (0.93), REE (0.91), MSN (0.87), SAB (0.87), VHC (0.87), HPG (0.87), DCM (0.85), PTB (0.85), BMP (0.84), AAA (0.77), SCS (0.74), PLX (0.74), PC1 (0.73), HT1 (0.72), PVT (0.69), DPM (0.63), VGC (0.6)
PNJ (0.97), VNM (0.95), HBC (0.95), SBT (0.92), PAN (0.89), BMP (0.85), HSG (0.85), PPC (0.85), MSN (0.81), DPM (0.81), DBC (0.76), DCM (0.72), HNG (0.7), VHC (0.7), KDC (0.63), SAB (0.63), PLX (0.63), GAS (0.61), PVD (0.58), CTD (0.56)
IMP (0.99), DHC (0.96), HPG (0.94), AAA (0.92), DGC (0.9), NT2 (0.83), NKG (0.66), HT1 (0.66), PC1 (0.66), PVT (0.66), SCS (0.66), BMP (0.63), BWE (0.63), VSH (0.63), GEX (0.63), REE (0.62), TMS (0.62), GAS (0.58), KDC (0.53), SAB (0.53)
PAN (0.99), PNJ (0.95), SBT (0.95), VNM (0.93), REE (0.9), MSN (0.86), SAB (0.86), VHC (0.86), HPG (0.86), PTB (0.83), DPM (0.76), AAA (0.75), SCS (0.72), PLX (0.72), PC1 (0.71), HT1 (0.7), HSG (0.68), PVT (0.67), GMD (0.57), VGC (0.57)
AAA (0.95), HPG (0.95), DHC (0.94), IMP (0.94), NT2 (0.87), DGC (0.82), NKG (0.82), BMP (0.71), BWE (0.71), GEX (0.71), REE (0.7), GAS (0.66), KDC (0.62), SAB (0.62), PC1 (0.62), PVT (0.62), VGC (0.62), POW (0.59), VSH (0.59), PVD (0.59)
PAN (0.99), SBT (0.95), VNM (0.95), MSN (0.94), PNJ (0.84), AAA (0.83), NKG (0.81), NT2 (0.81), PVT (0.81), VCG (0.81), BWE (0.79), HT1 (0.79), GEG (0.6), PTB (0.6), TMS (0.6), HBC (0.59), DPM (0.53), GAS (0.53), GMD (0.53), PC1 (0.53)
PAN (0.99), PNJ (0.95), SBT (0.95), VNM (0.93), REE (0.9), MSN (0.84), SAB (0.84), VHC (0.84), HPG (0.84), PTB (0.81), HSG (0.76), DPM (0.74), AAA (0.71), SCS (0.68), PLX (0.68), PC1 (0.67), HT1 (0.65), PVT (0.61), IMP (0.54)
PLX (0.82), SCS (0.8), PPC (0.78), DCM (0.7), CTD (0.7), SBT (0.66), DBC (0.61), PHR (0.53)
PAN (0.98), VNM (0.95), MSN (0.9), HPG (0.87), AAA (0.75), HT1 (0.75), PVT (0.71), IMP (0.65), PTB (0.6), PNJ (0.55), GMD (0.53), PC1 (0.53)
VNM (0.95), DPM (0.82), SCS (0.77), PLX (0.77), MSN (0.7), AAA (0.61), GMD (0.61), HT1 (0.61), PNJ (0.55)
Table 4 7 Cases covered by configuration on low D/E outcome
In Tables 4.5 and 4.6, we present the consistency and coverage of all configurations Consistency reflects how closely the fuzzy membership of each solution aligns with the results, while total solution consistency indicates the extent to which all solutions collectively fit within the results A consistency threshold above 0.75 is recommended, taking into account the number of samples and the practical basis for the set relationship Notably, the overall configuration solution relevance score for high CFP results ranges from 43% to 50.3%, whereas for low CFR results, it ranges from 65.3% to 88%, demonstrating a strong degree of relevance in the defined profile.
DISCUSSIONS AND CONCLUSIONS
Discussions of the findings
A longitudinal analysis of listed manufacturing companies in Vietnam from 2017 to 2021 reveals that the configuration of Environmental, Social, and Governance (ESG) pillars significantly influences Corporate Financial Performance (CFP) and Corporate Financial Risk (CFR) The findings indicate that varying ESG configurations can lead to both high CFP and low CFR outcomes Notably, the Social (S) pillar emerges as a critical factor in achieving high CFP and low CFR, demonstrating a greater impact than the Environmental (E) and Governance (G) pillars Furthermore, the analysis across different time frames consistently highlights the essential role of the S pillar in enhancing CFP.
This study identifies six configurations that contribute to high corporate financial performance (CFP) Notably, the presence of the E and G pillars, along with the absence of the S pillar, is one effective configuration Conversely, another configuration highlights the significance of the S pillar in achieving high CFP and low corporate financial risk (CFR) Our findings align with the perspective that social activism positively influences corporate financial performance (Ali et al., 2020) Additionally, corporate social responsibility (CSR) plays a crucial role in enhancing corporate image and boosting CFP (Ali et al., 2020) Ultimately, achieving high performance in listed manufacturing firms in Vietnam necessitates the presence of ESG pillar variables.
Implications of the study
This article enhances the existing literature by addressing a research gap through an analysis of how different configurations of ESG pillars impact Corporate Financial Performance (CFP) and Corporate Financial Risk (CFR), rather than just examining the net effects of each pillar It provides new evidence for understanding the relationship between ESG factors and CFP and CFR Additionally, the study highlights the significant influence of the Social (S) pillar in improving CFP and decreasing CFR among Vietnamese listed manufacturing companies, thereby aiding these firms in bolstering their corporate social responsibility initiatives.
This paper explores 51 responsibility practices and their influence on the relationship between Environmental, Social, and Governance (ESG) factors and Corporate Financial Performance (CFP) It builds on previous studies by encouraging scholars to investigate the connections between ESG and CFP, as well as Corporate Financial Resilience (CFR), across various industries from a configuration perspective Additionally, the research applies the fuzzy-set Qualitative Comparative Analysis (fsQCA) method to complex causal situations, addressing a gap in prior studies that primarily relied on cross-sectional data By utilizing a longitudinal fsQCA approach, this study analyzes the evolving configuration of ESG pillars in relation to CFP and CFR over time.
Conclusions and limitations
The study examines ESG scoring among 43 listed manufacturing firms in Vietnam from 2017 to 2021, revealing both improvements and declines in performance during this period It identifies key configurations that contribute to high corporate financial performance (CFP) and low corporate financial risk (CFR), highlighting the social (S) pillar as a crucial factor when combined with environmental (E) and governance (G) variables However, the findings are influenced by the subjective nature of the scoring method and FsQCA calibration, which are inherent limitations of these analytical approaches.
Appendix A is a list of 43 listed manufacturing firms in Vietnam
ID Stock code Company name
2 HNG Hoang Anh Gia Lai Agricultural Joint Stock Company
5 PAN The PAN Group Joint Stock Company
6 PNJ Phu Nhuan Jewelry Joint Stock Company
7 SAB Saigon Beer – Alcohol – Beverage Corporation
8 SBT Thanh Thanh Cong - Bien Hoa Joint Stock Company
10 VNM Viet Nam Dairy Products Joint Stock Company
11 AAA An Phat Bioplastics Joint Stock Company
12 BMP Binh Minh Plastics Joint Stock Company
13 DCM PetroVietnam Ca Mau Fertilizer Joint Stock Company
14 DGC Duc Giang Chemicals Group Joint Stock Company
15 DHC Dong Hai Joint Stock Company of Bentre
16 DPM Petrovietnam Fertilizer And Chemicals Corporation
17 HPG Hoa Phat Group Joint Stock Company
19 NKG Nam Kim Steel Joint Stock Company
20 PHR Phuoc Hoa Rubber Joint Stock Company
21 BWE Binh Duong Water - Environment Corporation - Joint Stock Company
22 GAS PetroVietnam Gas Joint Stock Corporation
23 GEG Gia Lai Electricity Joint Stock Company
24 NT2 PetroVietnam Power Nhon Trach 2 Joint Stock Company
25 POW PetroVietnam Power Nhon Trach 2 Joint Stock Company
26 PPC Pha Lai Thermal Power Joint Stock Company
27 VSH Vinh Son - Song Hinh Hydropower Joint Stock Company
28 CTD Coteccons Construction Joint Stock Company
29 GEX GELEX Group Joint Stock Company
31 HBC Hoa Binh Construction Group Joint Stock Company
32 HT1 VICEM Ha Tien Cement Joint Stock Company
33 PC1 PC1 Group Joint Stock Company
34 PTB Phu Tai Joint Stock Company
36 REE Refrigeration Electrical Engineering Corporation
37 SCS Sai Gon Cargo Service Corporation
39 VCG Vietnam Construction and Import - Export Joint Stock Company
41 PLX Viet Nam National Petroleum Group
42 PVD PetroVietNam Drilling & Well Service Corporation
Appendix A 1 List of 43 listed manufacturing firms
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