DETERMINANTS OF ENVIRONMENTAL, SOCIAL, AND GOVERNANCE AUDIT QUALITY: AN INTERNATIONAL COMPARATIVE ANALYSIS AND RECOMMENDATIONS FOR VIETNAM

Abstract

This study was conducted to provide insights into the key determinants of Environmental, Social, and Governance (ESG) audit quality and to offer practical recommendations to enhance ESG audit practices in Vietnam, where such frameworks and expertise remain underdeveloped. Using a qualitative desk research methodology, the study systematically reviewed academic literature, international standards, and industry reports, and conducted a comparative analysis of leading markets (EU, United States, Canada), developing markets (Singapore, Japan, Australia), and emerging markets (Vietnam, Thailand, Malaysia). The findings reveal that ESG audit quality is shaped by four main factors: auditor competence and continuous training, technological adoption, quality control systems, and a supportive legal and institutional environment. The study highlights Vietnam’s early-stage position in ESG auditing, with significant gaps in legal frameworks and human resources compared to advanced economies. This study makes significant contributions by: (i) extending the theoretical framework on ESG audit quality in developing country contexts through an integrated four-factor model; (ii) providing the first empirical evidence on the ESG audit capability gap between Vietnam and international markets; and (iii) proposing a specific two-phase roadmap suited to Vietnam’s conditions. The research findings contribute to policy direction for ESG audit market development, support audit firms in building capacity development strategies, and help Vietnamese enterprises enhance their integration into global supply chains.