Vietnam’s energy investment demand through 2030 is projected to exceed US$135 billion—a financial burden that stretches beyond the capacity of both domestic public and private sectors. In this context, green finance not only unlocks new sources of capital but also redefines the framework for sustainable development. To fulfill its international commitments in the energy sector, Vietnam cannot rely solely on policy measures. According to estimates by the World Bank and data from the revised National Power Development Plan VIII, Vietnam will need to mobilize approximately US$136.3 billion in investment for energy development during the 2026–2030 period. Of this, around US$18.1 billion is earmarked for transmission infrastructure, while US$118.2 billion is needed for power generation—figures that far exceed the financial capacity of both the domestic public and private sectors. In this context, green finance is emerging as an indispensable strategic lever to accelerate, deepen, and enhance the effectiveness of Vietnam’s energy transition. More than just cheap capital Green finance is not merely about low-cost capital—it represents a comprehensive ecosystem that shapes how funds are mobilized, allocated, and monitored according to sustainability criteria. Instruments such as green bonds, sustainable credit, transition finance, blended finance, and investments aligned with environmental, social, and governance […]
Green finance for the energy sector
By Truong Huu Ngu – Nguyen Thuy Trang (*)
