Hanoi (VNA) - Amid growing climate challenges and the global shift towards sustainable development, green credit has emerged as a key pillar of Vietnam’s financial system.
Green credit refers to loans or financing for environmentally friendly projects, such as renewable energy, green buildings, sustainable agriculture, and energy-saving initiatives.
According to the State Bank of Vietnam (SBV), green credit has seen steady expansion, growing from just 15 participating credit institutions in 2017 to 58 by 2025. Outstanding green credit now exceeds 704 trillion VND, or 4.3% of total credit across the economy. Priority sectors include renewable energy (45%), sustainable agriculture (31%), and water management.
SBV Standing Deputy Governor Dao Minh Tu affirmed the banking sector’s commitment to directing capital towards low-carbon industries and eco-friendly production. In line with this, banks have diversified funding sources via green bonds and international partnerships.
BIDV, a frontrunner in green finance, has adopted three strategic pillars: comprehensive digital transformation, ESG practices, and innovation. As of December 2024, BIDV’s green credit reached nearly 81 trillion VND, over 12% of Vietnam’s total green lending, supporting 1,982 green projects. The bank has also raised 2.5 trillion VND in green bonds, 3 trillion VND in sustainability bonds, and attracted 5 trillion VND in green deposits.
Other banks, such as Agribank and ACB, have launched dedicated loan packages for organic farming, renewable energy, and environmentally friendly industries, with interest rates from 3.5% per year.
Despite this progress, challenges remain, most notably the lack of a comprehensive legal framework and clear “green” criteria. BIDV General Director Le Ngoc Lam urged the Government to introduce low-interest green credit packages and establish a national green investment fund with public-private participation and transparent procedures. He also called for enhanced R&D incentives and support for local enterprises producing green products to boost international competitiveness.
Lam emphasised the need for businesses to embrace technology, digitalise operations, and build green partnerships to cut emissions and strengthen resilience. This, combined with training and capacity building, would lay a solid foundation for green and sustainable development.
Associate Professor Dr Pham Thi Hoang Anh, Deputy Director of the Banking Academy, stressed that the lack of a unified green taxonomy remains a major barrier. She called for the early issuance of a green project list and mandatory standards to ensure transparency and effectiveness in green lending. She also urged greater funding diversification, not only through concessional interest policies but also via the green bond market and stakeholder awareness-raising.
Ha Thu Giang, Director of the Economic Sectors Department at the SBV, stressed the importance of inter-ministerial coordination to improve green credit policy, establish roadmaps for tax and technical support, and develop the carbon credit and green bond markets. Access to long-term international capital will also be key.
“Green credit is a catalyst for sustainable growth in Vietnam,” Giang stated. “But only through strong collaboration among the State, banks, businesses and the wider community can it truly drive the transition to a low-carbon economy and achieve net-zero emissions.”/.
