Southeast Asia Information Port (www.dnyxxg.com) – Recently, various credit institutions and capital markets in Vietnam have gradually established financing channels for environmentally friendly projects. The outstanding balance of green loans in the banking system has increased significantly, highlighting the high level of attention banks and enterprises pay to emission reduction and green projects, injecting strong momentum into Vietnam's green economic transformation.
Data from the State Bank of Vietnam shows that as of the end of November 2025, the country's outstanding green loans are expected to reach VND 750 trillion, with an average growth rate significantly higher than the overall credit growth rate of the economy, indicating a strong momentum in the green finance market.
A relevant official from the State Bank of Vietnam stated that green loan business has made positive progress recently, with funding focusing on core green areas such as renewable energy, high-tech agriculture, circular economy, waste treatment, and energy conservation, precisely addressing the development needs of green industries.
At the policy level, support for green projects has been clearly defined. On May 4, 2025, the Politburo of Vietnam issued Resolution No. 68-NQ/TW on the Development of the Private Economy, and the National Assembly simultaneously issued Resolution No. 198/2025/QH15, both of which established the core principle of implementing interest rate subsidies for green projects. To implement the aforementioned directives, the State Bank of Vietnam is closely coordinating with the Ministry of Finance to request the government to issue a special decree, planning to provide a 2% annual loan interest subsidy from the national budget to private enterprises and individual businesses undertaking green and circular economy projects, further reducing financing costs for green projects.
To broaden funding sources for green projects, Nguyen Quoc Hung, Vice Chairman and Secretary General of the Vietnam Banking Association, proposed targeted suggestions: firstly, establishing a green credit guarantee fund under a public-private partnership (PPP) model to support enterprises in obtaining green financing, while fully learning from the experience and lessons of existing guarantee fund operations to avoid limitations; secondly, expediting the operation of a carbon credit trading platform, which is seen as a key lever to drive banks to develop new financial products linked to the carbon market.
Currently, Vietnam is facing a significant opportunity for economic growth model transformation. The country has clearly stated that seizing this opportunity requires simultaneously advancing the construction of three core pillars: firstly, diversifying funding sources for green projects; secondly, improving the legal framework for classifying green projects; and thirdly, strengthening the coordination between fiscal and monetary policies. Among these, the banking system, as a core financial intermediary, will continue to play a leading role in helping Vietnam's green transformation strategy to take effect. (End)
