Vietnam has pledged to achieve net zero emissions by 2050, a goal that is both ambitious and urgent in the face of climate change. The World Bank estimates Vietnam must mobilize an average of 6.8% of GDP each year for the transition in energy, industry, and infrastructure. However, the country’s green finance market remains underdeveloped, with no clear standards and limited capacity to meet this demand. At the international conference “Unlocking International Green Capital Markets – Promoting Sustainable Development and Inclusive Finance in Vietnam,” held by Nam A Bank on September 5, experts agreed that green capital is only part of the solution. The decisive factor is businesses, which must be able to absorb and deploy funds effectively. Without feasible, transparent, and financially sound projects, efforts to attract capital or design incentives will fall short. Barriers to capital access The State Bank of Vietnam laid an early foundation with Directive 03 in 2015, followed by green banking strategies to 2030 and the 2020 Environmental Protection Law. Still, progress is limited. According to Nguyen Quoc Hung, general secretary of the Vietnam Banking Association, green credit accounts for less than 4.5% of total outstanding loans. Only US$1.16 billion worth of green bonds […]
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