This study examines the short-term impact of ESG performance on the financial performance of Vietnamese listed enterprises. Using panel data from 50 firms included in the VNX50 index during the period 2020-2024, with 247 valid observations, the study employs Pooled OLS, Fixed Effects Model (FEM), Random Effects Model (REM) and Feasible Generalized Least Squares (FGLS) estimations. Financial performance is measured by Return on Assets (ROA) and Return on Equity (ROE), while ESG performance is represented by ESG Scores obtained from LSEG (Refinitiv). The empirical results indicate that ESG performance has a negative and statistically significant relationship with both ROA and ROE during the study period. The findings suggest that, in the early stage of ESG adoption, implementation, reporting, and compliance costs may exert pressure on firms’ short-term profitability. This study contributes additional empirical evidence on ESG performance in Vietnam and provides useful implications for managers and policymakers in designing more effective ESG implementation strategies.

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