The “One commune, One product” (OCOP) program has become a key driver of rural economic development around Vietnam. However, to elevate the program into a global movement that aligns with the preservation of local heritage and traditional culture, while fostering sustainable and deeply-integrated rural economic growth, it is essential to integrate it with ESG (environmental, social, and governance) principles.

Advancing rural development

Launched in 2018, the OCOP program marked a turning point in Vietnam’s rural economic development. Thousands of high-quality products, from organic rice, mung bean cakes, and brocade textiles to Ha Lung grilled pork rolls, Phu Quoc fish sauce, and Cat Hai seafood have met national quality standards.

To foster the development of OCOP products, the government has introduced a range of investment support policies aimed at building essential infrastructure that serves the entire product lifecycle, from production and processing to preservation and market distribution. These policies fall into two main groups.

The first includes direct policies, such as Decision No. 490/QD-TTg dated May 7, 2018, which approved the OCOP program for the 2018-2020 period; Decision No. 1048/QD-TTg dated August 21, 2019, which issued the evaluation and classification criteria for OCOP products; and Decision No. 781/QD-TTg, dated June 8, 2020, which amended and supplemented Decision No. 1048.

The second group includes support policies that allow OCOP participants to access broader national programs, including those related to craft village development, agricultural and rural development, interest rate subsidies, science and technology, and human resources training.

Additionally, policy efforts have focused on electricity infrastructure, technology systems, e-commerce platforms, and concentrated raw material zones that ensure safe and bio-secure production. Infrastructure supporting OCOP development is not limited to physical elements such as electricity supply, raw materials, processing equipment, storage, and commercial networks, but also includes shared technological systems, links across production and consumption value chains, and support for technology and human resource development aimed at enhancing product value and market reach.

With these efforts, Ms. Beth Bechdol, Deputy Director-General of the United Nations’ Food and Agriculture Organization (FAO), is confident that Vietnam’s OCOP model could evolve into a globally-scalable and impactful rural development program.

These developments show that both the products and infrastructure of the OCOP program are closely aligned with ESG principles. ESG is a widely-recognized framework for assessing sustainability and community impact, and is often used by investors to identify viable, responsible investment opportunities. Therefore, integrating ESG into the OCOP program is not only an opportunity but also a strategic necessity to meet the expectations of international markets and attract investment.

For example, OCOP product development in the so-called “new Hai Phong” in Vietnam’s northern region, which includes Hai Phong city and the former Hai Duong province, as well as the nearby “new Ninh Binh”, which includes Ninh Binh province and the former Nam Dinh and Ha Nam provinces, is transitioning towards value chain-based commodity production models. These initiatives enhance competitiveness by adopting organic fertilizers, implementing environmentally-friendly technologies, and reducing carbon emissions. OCOP projects also contribute to the circular economy by reusing agricultural by-products to produce organic fertilizers, thus protecting the environment while generating additional income streams.

Beyond products, the OCOP program is a broader effort to improve the lives of rural communities, particularly women and ethnic minorities. Many OCOP initiatives have created thousands of local jobs and helped preserve indigenous cultures, as seen in provinces like Ninh Binh. These stories not only strengthen brand identity but also fulfill the social dimension of ESG, attracting investors who prioritize community impact. Several OCOP cooperatives are also implementing transparent governance practices, using technologies such as AI and blockchain to trace product origins and ensure accountability.

Government support policies not only help ease financial burdens but also enhance the competitiveness of OCOP projects, creating favorable conditions to attract investment from domestic and international ESG-focused funds. According to market researchers and consultants Precedence Research, the global ESG market was valued at $29.86 trillion in 2024 and is projected to reach $167.49 trillion by 2034, with a compound annual growth rate (CAGR) of approximately 18.82 per cent from 2025 to 2034.

In terms of demand for sustainable products, global consumers, especially Gen Z and Millennials, prioritize organic and environmentally-friendly goods, which aligns with OCOP offerings such as organic rice and organic coffee.

Major investment firms like BlackRock and Vanguard continue to expect businesses to embed ESG principles into their strategies. Moreover, the expanding global carbon market and green bond initiatives are opening new opportunities for OCOP projects to participate, particularly in agroforestry-based models.

This trend requires that Vietnam move quickly. The country’s commitment to achieving net-zero emissions by 2050, along with policies like the National Power Development Plan VIII (PDP8) and the introduction of a carbon market, indicate Vietnam’s active integration into the global ESG movement.

Its ESG-integrated OCOP products hold strong potential to capitalize on free trade agreements such as the EUVFTA and the CPTPP for exports, while also attracting capital from ESG investment funds such as those of the IFC, the ADB, and Mekong Capital.

“Compared to other countries in the region, Vietnam combines strong economic growth with a firm commitment to sustainability, making it an ideal destination for ESG investment,” according to Mr. Chad Ovel, Partner at Mekong Capital.

Investors increasingly recognize that ESG integration into OCOP brings attractive benefits, including strong profit potential. OCOP products that meet ESG standards can command premium prices, of 15 to 30 per cent higher, on international markets.

Additionally, ESG compliance helps OCOP projects mitigate legal risks, such as the EU’s Carbon Border Adjustment Mechanism (CBAM), while meeting modern consumer expectations. Investment in OCOP under ESG principles not only yields returns but also creates jobs, protects the environment, and drives sustainable rural development.

Therefore, integrating ESG into the OCOP program is not merely a trend but a strategic imperative to take Vietnam’s rural products to the global market and meet the growing demand for sustainability. It is also a long-term solution for the sustainable development of Vietnam’s rural economy.