Vietnam’s international trade increases the size of the economy leading to an increase in pollution, and hence trade, ceteris paribus, is the principal cause of environmental degradation. This study aims to understand the trade-off between pollution and development in Vietnam, which can inform strategies to mitigate environmental degradation and help the country to reach its net-zero emissions target by 2050. The research specifically investigates how the economy, trade openness, and industrialization impact Vietnam’s environmental quality, focusing on this major export-oriented nation known for its long period of economic growth. A key contribution of this work is its use of the ecological footprint as the primary indicator for environmental degradation, departing from previous studies that concentrated solely on CO2 emissions. This broader approach allows for a re-evaluation of prior findings. The study analyzed annual data from 1997 to 2020 using the Dynamic Ordinary Least Squares technique. The empirical results indicate that as economic activity and trade openness increase, so do pollution. Conversely, increase in industrialization is associated with reduced environmental destruction. To achieve its high economic growth while simultaneously lowering environmental degradation, Vietnam should prioritize implementing “greening investment principles” and adopting environmentally friendly technologies in production.