Green finance is not only creating new development opportunities but also delivering environmental benefits, promoting more sustainable growth models for economies worldwide, including Vietnam. Experts, both domestic and international, share the view that the size and quality of the green finance market will significantly shape Vietnam’s long-term economic outlook. Strategic investment in sustainable projects is expected to drive the development of energy infrastructure, particularly renewable energy. It will also support research into new technologies and help transform key sectors such as transport, construction, and manufacturing to become more environmentally friendly. The World Bank estimates that Vietnam will require massive investment to support sustainable growth. Just the additional funds needed for climate change adaptation and achieving net-zero emissions between now and 2040 are estimated at US$370 billion. However, the major challenge for domestic businesses pursuing sustainable solutions lies not in the availability of capital but in their limited access to green credit. The absence of a solid taxonomy framework remains a key obstacle to directing potential funding into low-carbon industries. Green taxonomy list Speaking to The Saigon Times on the sidelines of the Sustainable Development 2024 event in HCMC in September, Lim Dyi Chang, senior director for corporate banking at UOB […]
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