Author: Hà Thu Giang / Director General of the Credit Department for Economic Sectors, State Bank of Vietnam

20/12/2025

Source: https://www.tinnhanhchungkhoan.vn/tin-dung-xanh-cho-phat-trien-ben-vung-post382423.html

(ĐTCK) The banking sector, as one of the key capital channels of the economy, is actively implementing various measures to direct credit flows toward green and environmentally friendly projects.

Channeling Green Credit to the Economy

Green transformation and sustainable development are inevitable trends taking place across countries worldwide. In Viet Nam, the Party and the State have consistently and steadfastly upheld the policy of sustainable development associated with environmental protection, while demonstrating strong determination to successfully achieve the goal of net-zero emissions by 2050.

Based on this orientation, the banking sector - with its role as one of the key capital channels of the economy - is actively implementing solutions to direct credit flows toward green and environmentally friendly projects, thereby contributing to the implementation of the national strategy on green growth and sustainable development.

First, promptly implementing the Banking Sector Action Plan to carry out the National Strategy on Green Growth and the Green Banking Development Scheme; integrating green banking and green credit orientations into the Banking Sector Development Strategies and the Scheme on Restructuring Credit Institutions in association with the settlement of non-performing loans. In particular, the objective is to enhance the efficiency of credit capital allocation to meet socio-economic development requirements, thereby contributing to the transition of the economy toward green growth, low-carbon emissions, and climate resilience.

Second, regularly reviewing and refining regulatory documents guiding the credit extension activities of credit institutions to customers in order to ensure consistency, coherence, and alignment with green growth and sustainable development trends; providing guidance to credit institutions on implementing environmental risk management in credit extension activities, thereby demonstrating the banking sector’s responsibility in environmental protection.

Third, directing credit institutions to promote green credit activities and conduct statistical reporting on green credit. In particular, immediately following the issuance by the Prime Minister of Decision No. 21/2025/QĐ-TTg promulgating the Green Taxonomy List and Directive No. 20/CT-TTg dated July 12, 2025 on urgent and decisive measures to prevent and address environmental pollution, the State Bank promptly issued written directives requiring credit institutions to prioritize and allocate appropriate capital resources for lending to customers implementing investment projects included in the Green Taxonomy List, as well as projects and production–business plans that deliver environmental benefits, contribute to environmental protection, and support the reduction of greenhouse gas emissions; at the same time, requiring credit institutions to strengthen and further improve their environmental risk management systems in order to enhance accountability and encourage customers to proactively adopt environmental protection measures.

In addition, coordinating with ministries, sectors, and local authorities, and directing credit institutions to actively implement credit policies for green sectors and fields, as well as agricultural production under value-chain linkages and high-technology application models, such as the Program on Lending for Production Linkages, Processing and Consumption of High-Quality, Low-Emission Rice Products in the Mekong Delta Region, thereby contributing to transforming agricultural production practices toward sustainability, emission reduction, income enhancement, and environmental protection.

Fourth, strengthening international cooperation to mobilize resources for green growth. In recent years, the State Bank has proactively and actively engaged in discussions and cooperation with organizations such as the World Bank (WB), the Asian Development Bank (ADB), the Asian Infrastructure Investment Bank (AIIB), the Agence Française de Développement (AFD), the Japan Bank for International Cooperation (JBIC), and foreign banks, with a view to mobilizing their support resources for green growth and sustainable development; and researching, developing, and proposing coordination mechanisms and implementation approaches appropriate to new circumstances and emerging trends.

Fifth, coordinating with international organizations to implement technical assistance activities, training programs, and capacity-building initiatives to enhance knowledge and management skills, thereby improving the quality of human resources in the banking sector in the areas of green credit and green banking.

Through the comprehensive and synchronous implementation of the above-mentioned measures, credit institutions have proactively and actively carried out tasks and solutions to advance green credit and green banking in a relatively comprehensive manner, meeting the requirements of the State Bank, complying with environmental regulations, and gradually aligning with international standards.

Credit institutions have also proactively issued and integrated green growth objectives into their business development strategies and plans; diversified funding sources and actively researched and developed green credit products; established governance systems and implemented environmental and social risk management in credit extension activities; and cooperated with international organizations while strengthening training efforts to enhance the capacity of banking staff in ESG matters, green finance, green banking, and sustainable development.

Continuing to Unlock Resources for Green Growth

In the coming period, on the basis of closely adhering to the socio-economic development objectives, the National Strategy on Green Growth and its implementation plans, the State Bank will continue to focus on implementing the following key solutions.

First, to monitor the implementation of credit provision to green sectors and the management of environmental and social risks in credit extension activities; and to promptly address difficulties and obstacles arising during implementation by credit institutions.

Second, to coordinate with ministries and sectors in developing and submitting to the Government policies to support enterprises in the private economic sector, household businesses and individual business entities in receiving a State interest rate subsidy of 2% per annum when borrowing capital to implement green and circular projects and to apply environmental, social and governance (ESG) standards frameworks.

Third, to actively negotiate and seek funding sources from domestic and international organizations in order to obtain financial and technical assistance for the implementation of green finance and green banking activities, particularly to enhance the capacity of banking staff in green banking, green credit and climate change.

Fourth, to strengthen communication and dissemination efforts within the banking sector so as to raise awareness and understanding among banking staff and customers regarding green growth, and sustainable production and consumption.

In order for bank credit capital to continue to operate effectively, thereby contributing to the achievement of green growth and sustainable development goals, close attention and coordinated implementation of solutions by ministries, sectors and local authorities are required. Accordingly, the State Bank proposes that relevant authorities give due attention to developing synchronized roadmaps for the implementation of policy mechanisms to support green industries (including taxation, fees, capital, technology, markets, planning and development strategies) for each sector and field, so as to attract and enhance the effective utilization of green credit capital. At the same time, it is necessary to develop the green bond market and the domestic carbon market in order to create additional capital mobilization channels, enabling project owners to access further resources for the implementation of green projects.

The State Bank also recommends that relevant authorities study and propose mechanisms and policies to support credit institutions in accessing long-term and concessional funding sources, particularly through the mobilization of international resources, thereby enabling them to provide long-term loans at preferential interest rates to green sectors and fields.

In addition, it is necessary to further improve the database system on compliance with environmental protection laws and to disclose information on the list of projects that generate environmental benefits, in order to enhance the effectiveness of resource mobilization for environmental protection efforts.