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ISSN:2325-6192 (print)
ISSN:2325-6206 (online)
Journal of Environmental Accounting and Management
António Mendes Lopes (editor), Jiazhong Zhang(editor)
António Mendes Lopes (editor)

University of Porto, Portugal

Email: aml@fe.up.pt

Jiazhong Zhang (editor)

School of Energy and Power Engineering, Xi'an Jiaotong University, Xi'an, Shaanxi Province 710049, China

Fax: +86 29 82668723 Email: jzzhang@mail.xjtu.edu.cn

Carbon Dioxide Emissions and Business Performance: Firm-level Evidence from Vietnamese Manufacturing Companies

Journal of Environmental Accounting and Management 14(2) (2026) 283--298 | DOI:10.5890/JEAM.2026.06.008

Nhung Hong Do, Duy Thai Vu, Minh Binh Tran, Van Mai Trinh, Ngoc Hong Thi Hoang

National Economics University, 207 Giai Phong Street, Hai Ba Trung District, Hanoi, Vietnam

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Abstract

Vietnam's intensive industrialization has been a driving force behind its economic growth, creating opportunities for potential expansion of the manufacturing industry. However, the proliferation of manufacturing plants and extensive burning of fuels to support production have posed significant environmental challenges. Recognizing the severe deterioration of ecosystems, Vietnamese enterprises have increasingly committed to mitigating the environmental impacts of manufacturing by integrating sustainability goals into their business strategies. This study empirically examines the relationship between carbon dioxide (CO2) emissions and business performance of Vietnamese manufacturing firms from 2016 to 2022. The findings reveal robust evidence of an inverted U-shaped relationship between CO2 emissions growth and firm performance. Furthermore, the growth rate of CO2 emissions was negatively affected by the COVID-19 pandemic and the financial leverage of Vietnamese manufacturing firms. These results are consistent for both domestic and foreign direct investment (FDI) firms. Notably, larger FDI firms emit fewer pollutants per unit of production than micro-, {small$\text{-,}$} and medium-sized enterprises (MSMEs), although this difference is not statistically significant for domestic firms. This study provides valuable insights for businesses, offering guidance on optimizing resource utilization, enhancing operational efficiency, and reducing environmental impacts to achieve sustainable industrial development.

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