ESG-S Practices and Human Resource Sustainability in Three- to Five-Star Hotels in Hanoi: A Situational Analysis and Directions for Action

Purpose: This paper examines how the social pillar of environmental, social and governance practice (ESG-S) is currently applied to employees in three- to five-star hotels in Hanoi, Vietnam, and what this situation means for the long-term sustainability of the hotel workforce.

Design/methodology/approach: A desk-based situational analysis was carried out using official tourism and labour statistics, hotel market reports from international real estate consultancies, industry workforce surveys, the Vietnamese legal framework on labour, wages and social insurance, and international reporting standards (GRI 401 to 407 and ESRS S1). The evidence was organised into six ESG-S domains and graded by source strength. No causal or statistical model is estimated; the purpose is to establish a reliable baseline.

Findings: Demand has recovered quickly. Hanoi received 33.7 million visitors in 2025, and occupancy in the tracked three- to five-star stock rose from 49% in the last quarter of 2022 to between 70% and 76% in 2025 and 2026, while new supply is concentrated in the five-star tier. Workforce conditions have not kept pace. Industry surveys report average annual staff turnover of about 19%, with one unit in four losing 30% or more of its staff each year, and more than three-quarters of employers report difficulty in recruiting. Statutory protection improved in 2025 and 2026 through a higher regional minimum wage and a new Law on Social Insurance, yet property-level evidence on pay adequacy, working time, gender equality and employee voice is largely missing. Sustainability effort in the city is clearly weighted toward environmental measures, while social practices remain mainly compliance-driven and unmeasured.

Practical implications: The paper sets out directions for hotels, industry bodies, training institutions and the city government, together with a minimum set of property-level social indicators that can be reported at low cost.

Originality/value: The study provides an integrated baseline of ESG-S practice and workforce sustainability for the upscale hotel sector of Vietnam's capital and shows how a green-first sustainability agenda can leave the human side of hotel operations under-managed.