Under mounting pressure to pursue a green transition to remain competitive in global supply chains, the concepts of “sustainable finance” and “green finance” are often portrayed as gateways to preferential interest rates. To shed light on the “bottlenecks” businesses face in accessing green capital, and to better understand the decision-making logic of financial institutions, The Saigon Times spoke with Le Xuan Quynh, an expert at Peterson Solutions Vietnam—an independent unit specializing in project risk assessment for both borrowers and lenders. The Saigon Times: The keyword “green finance” appears frequently in Vietnamese news headlines. There is a popular belief that with only “green” labelling, businesses can access international capital more easily. What do you think of this reality? Le Xuan Quynh: I must emphasize at the outset that sustainable finance does not equate to “easy borrowing.” A common misconception among businesses is the belief that loans can be secured simply by attaching a “green” label. In traditional finance, assessments typically focus on collateral and the borrower’s ability to generate sufficient cash flow for repayment. If the level of risk exceeds a bank’s risk appetite, credit is usually withheld—regardless of whether that risk might be managed or mitigated. By contrast, sustainable finance […]
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