Vietnam’s private sector must take action to accelerate women’s economic participation to address a looming talent shortage and to unlock inclusive, sustainable growth, according to a new IFC report.

Women work in organic vegetable farming at Little Star Farm in Soc Trang. Photo: Xuan Luong/The Hanoi Times

The report "The Green Edge: Women’s Employment and Leadership for Sustainable Business in Vietnam" reveals that, although the solar energy, plastics recycling, and rice production sectors are central to Vietnam’s climate ambitions, women are significantly underrepresented, holding an average of just 23% of formal jobs and 21% of leadership roles.

As these sectors grow to meet increasing demand and create new green job opportunities, persistent gender gaps could hinder innovation, slow growth, and reduce competitiveness and productivity.

This groundbreaking diagnostic study recommends practical steps for businesses in these sectors – chosen for their influence on low-carbon growth and investment potential – to expand opportunities for women through targeted recruitment, upskilling, and inclusive workplace and supply chain policies.

“When women work, economies win. Unlocking jobs for women fuels shared prosperity, strengthens resilience, and drives inclusive growth, especially for sectors that are relevant to Vietnam’s green transition,” said Australia’s Ambassador to Vietnam Gillian Bird.

“By investing in women’s participation in climate-critical sectors, we can accelerate progress toward net-zero while ensuring that the benefits of growth are shared by all.”

Removing barriers to women’s inclusion can close skills gaps, build a future-ready talent pipeline, and boost business performance.

The report reveals that companies that employ women and men equally are better equipped to manage climate risks, reduce emissions, seize new growth opportunities, and attract stronger investor support. Some of the firms interviewed, for example, reported that taking corporate actions to advance women, such as adopting equal opportunity policies, improved access to competitive financing.

The World Bank Group estimates that Vietnam’s net-zero pathway will create nearly one million new jobs by 2040, particularly demanding science, technology, engineering, and math (STEM) skills. Deliberate action is needed to ensure women benefit equally from these opportunities.

“Vietnam’s bold commitment to a low-carbon, climate-resilient economy is not just a necessity, it’s a powerful opportunity for businesses to lead transformative change and help shape a more inclusive future,” said Thomas Jacobs, IFC Country Manager for Vietnam, Cambodia, and Laos.

“This sector-by-sector roadmap shows how inclusive companies are better positioned to close skills gaps, create better jobs, attract investment, and lead Vietnam’s green transition with stronger, more resilient operations.”

The Green Edge: Women’s Employment and Leadership for Sustainable Business in Vietnam report is part of the IFC's efforts, funded by the Australian government's development program in Vietnam, to support private-sector-led climate solutions that create jobs for women and men, improve livelihoods and climate resilience, and align with national development goals.