Empirical analysis reveals divergent effects of foreign sustainability uncertainty on corporate investment in Vietnamese firms, highlighting vulnerability in carbon-intensive sectors.
This study examines the effects of sustainability uncertainty originating from the United States of America and China, two major trading partners of Vietnam, on the investment decisions of Vietnamese firms. The results reveal that sustainability uncertainty originating from the U.S. positively affects corporate investment decisions, while China-based uncertainty exerts a negative effect. In-depth analysis further reveals the moderating effect of investment irreversibility and potential non-linear relationships between sustainability uncertainty and investment decisions. Lastly, such effects are more prominent for firms operating in intensive carbon-emitting industries. The results suggest that economic-related sustainability uncertainties originating from vital trading partners can act as a key driver of firms’ investment decisions of Vietnamese firms. The empirical findings of the study offer important policy recommendations for the Vietnamese government and the corporate sector.
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Trương et al. (2026) studied this question.
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