Green credit - key "pillar" of green economy

Among the 12 green fields that the State Bank of Vietnam guides credit institutions to lend, outstanding loans focus mainly on renewable energy, clean energy (accounting for 45%), and green agriculture (31%).
Green credit - key "pillar" of green economy ảnh 1Banks fund projects in 12 green fields. Illustrative image (Photo: VietnamPlus)

Hanoi (VNA) – Bank capital is considered the "lifeblood" and is extremely important in promoting the country's socioeconomic development. In the context that Vietnam is promoting the development of industries toward green growth, "green credit" contributes to supporting businesses to develop sustainably.

Acknowledging the importance of green credit, the State Bank of Vietnam (SBV) issued Directive No 3/CT-SBV dated March 24, 2015, which requires commercial banks to promote green credit for environmental protection projects and encourages environmentally friendly business activities.

The total green credit balance topped nearly 528.3 trillion VND ( 22.3 billion USD) by June 30, 2023, accounting for 4.2% of the total outstanding loans of the economy, compared with nearly 85 trillion VND or 1.5% in 2016.

Among the 12 green fields that the SBV guides credit institutions to lend, outstanding loans focus mainly on renewable energy, clean energy (accounting for 45%), and green agriculture (31%).

According to Nguyen Quoc Hung, Vice President and General Secretary of the Vietnam Banks Association, greening the economy is a global trend and is receiving attention on international agendas to minimise negative impacts of economic growth on the environment and society.

Green credit and green banking play an important role in implementing the National Green Growth Strategy in the 2021-2030 period with a vision to 2050 as they create resources for environmentally friendly projects and programmes.

Green credit - key "pillar" of green economy ảnh 2The State Bank of Vietnam (SBV) asks commercial banks to promote green credit for environmental projects and environmentally friendly business activities. (Photo: VietnamPlus)

Tran Anh Quy, head of Policy Credit at SBV’s Department of Credit for Economic Sectors, said the SBV has directed credit institutions to implement green credit programmes targeting some industries such as green agriculture, forestry, housing, and environment.

During 2018-2019, the SBV coordinated with the International Finance Corporation (IFC) to issue a handbook on social and environmental risk assessment for 15 economic sectors. The book is a toolkit to help banks assess the environmental and social risks of credit projects and assist credit officers in appraising business plans, ensuring effective green and sustainable development.

The SBV has collaborated with the Ministry of Natural Resources and Environment to develop and submit to the Prime Minister for approval a green classification list, which will facilitate the deployment of green financing activities of credit institutions.

It has also studied and developed mechanisms and policies as well as projects to expand modern banking services with the application of high technology, contributing to boosting green growth.

Green credit - key "pillar" of green economy ảnh 3BIDV is the first bank in Vietnam to issue the Green Bond Framework.(Photo: VietnamPlus)

Promoting green credit for sustainable development

Phan Thanh Hai, Deputy General Director of BIDV, said the bank began to lend to green projects early, especially those relating to renewable energy.

BIDV has focused on investing in wind and solar power projects since 2013 and it has also included green growth strategy in its business strategy.

As of September 30, 2023, BIDV funded 1,500 customers with 1,900 green credit projects, with total outstanding loans of more than 71 trillion VND, or 5.5% of total outstanding loans of BIDV, up 11% year-on-year.

Green credit - key "pillar" of green economy ảnh 4Agribank will also build a green economy, a circular, and environmentally friendly economy.(Photo: VietnamPlus)

Nguyen Thi Thu Ha - head of the Financial Institutions Department of Vietnam Bank for Agriculture and Rural Development (Agribank) said nearly 70% of Agribank’s outstanding loans are in the field of agriculture and rural development, so developing green credit is very important to it.

Besides the above-mentioned banks, other credit organisations have also joined the green credit segment, but the disbursement amount was still modest due to the lack of a clear legal framework./.

VNA

See more

Furusawa Yasuyuki, General Director of AEON Vietnam Company Limited, speaks at a meeting with Can Tho city's leaders. (Photo: VNA)

Can Tho creates enabling environment to attract Japanese investors

The Mekong Delta city of Can Tho is committed to creating the best possible conditions for Japanese companies to study, invest and develop projects, Standing Vice Chairman of the municipal People’s Commitee Duong Tan Hien said at a January 20 meeting with representatives from the Japanese Embassy and businesses in Vietnam.

Representatives of the Vietnamese Ministry of Industry and Trade and the Office of the US Trade Representative sign an agreement regarding anti-dumping on Vietnamese fish fillets on January 20 (Photo: moit.gov.vn)

US anti-dumping duty removed from Vietnamese fish fillets

A bilateral agreement between the Vietnamese and US Governments regarding anti-dumping duties on Vietnamese fish fillets was signed on January 20, marking the end of relevant disputes in Case DS536 at the World Trade Organisation (WTO).

The red carps for the ritual remain reasonably priced at 25,000-75,000 VND for three fish, depending on sizes. (Photo: VNA)

Hanoi markets bustle as residents prepare for Kitchen Gods’ Day

Markets across the capital city of Hanoi are teeming with fresh produce and traditional offerings as locals are preparing to bid farewell to the ong Cong (Land Genie) and ong Tao (Kitchen Gods) to the heaven, an important precursor to the Tet (Lunar New Year) celebrations.

Illustrative image (Photo: cafef.vn)

Banks step up capital mobilisation policies

Many banks have promoted capital mobilisation policies right from the beginning of 2025 to improve financial strength and meet the credit demand that is forecast to increase sharply this year.

Illustrative image (Photo: VinFast)

VinFast officially enters India market, unveils two EVs

Vietnamese electric vehicle manufacturer VinFast has unveiled two all-electric B-segment and C-segment SUVs, VF6 and VF 7, that will be sold in the Indian market within the framework of the Bharat Mobility Global Expo 2025 on January 18.

WEF’s Head of Regional Agenda for Asia-Pacific Joo-Ok Lee. (Photo: VNA)

WEF expert believes in Vietnam’s new era

As the world transitions into a new era, Vietnam is emerging as a key player in multilateral cooperation mechanisms and a beacon of growth and development, said the World Economic Forum (WEF)’s Head of Regional Agenda for Asia-Pacific Joo-Ok Lee.

VinFast's green bus fleet is ready to supply to three transport companies. (Photo: VNA)

VinFast launches new e-bus model

VinFast, a leading Vietnamese electric vehicle manufacturer, on January 17 launched a new electric bus model with the capacity to carry up to 60 passengers.

At the second economic consultation meeting held in Warsaw (Photo: Ministry of Industry and Trade)

Vietnam, Poland discuss major measures to beef up economic ties

Vietnam and Poland discussed and agreed on major measures to beef up trade and economic partnership at the second economic consultation meeting held in Warsaw as part of Prime Minister Pham Minh Chinh’s ongoing official visit to the European country.