“Diverse Capital for Sustainable Development” Seminar – Photo: VGP
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Approximately $700 billion in investment is needed for sustainable development by 2050
According to the Ministry of Finance at the “Diverse Capital for Sustainable Development” seminar, under the carbon neutrality scenario, Vietnam’s total long-term investment demand for green and sustainable economic development by 2050 is estimated at $670–700 billion. Of this, the capital requirement for climate change adaptation alone is approximately $368 billion, equivalent to 6.8% of GDP annually. This highlights the significant need for long-term financial resource mobilization.
Mr. Nguyễn Bá Hùng, Chief Economist at ADB Vietnam, stated that the capital challenge for sustainable development lies not only in mobilization scale but also in capital utilization efficiency. The synchronized development of capital mobilization channels, such as government bonds, corporate bonds, stock markets, and public-private financial instruments, is a strategy adopted by many countries.
Speaking at the seminar, Deputy Governor of the State Bank of Vietnam (SBV), Nguyễn Ngọc Cảnh, reported that as of November 30, 2025, the green credit balance across the system reached approximately 750,000 billion VND. The average growth rate from 2017 to 2025 exceeded 21% annually, outpacing the overall credit growth of the economy.
According to the Deputy Governor, commercial banks are the largest capital providers, accounting for about 88% of total green credit. Banks primarily mobilize green capital through issuing green bonds and international loans. Citing IFC data, the value of green bonds issued in Vietnam from 2020 to 2025 surpassed $1.5 billion.
Deputy Governor of SBV Nguyễn Ngọc Cảnh – Photo: VGP
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Based on these insights, the Deputy Governor outlined five key areas to promote capital diversification for sustainable development.
First, clarify the conditions for the capital market to become an effective channel, complementing bank credit in financing green projects, energy transitions, and sustainable development.
Second, implement solutions to develop the green capital market, encouraging the issuance of sustainable financial instruments like green bonds, sustainability bonds, and ESG-compliant corporate stocks. Simultaneously, enhance the capacity of businesses and investors to access, utilize, and monitor these capital flows and financial products effectively.
Third, review the implementation of green credit in the banking sector, evaluate achievements, draw lessons, and determine future directions to strengthen the banking system’s role in leading and expanding green credit within the economy.
Fourth, refine mechanisms and policies to attract private sector capital into green projects and sustainable growth. The government should play a regulatory role by improving the legal framework, enhancing transparency, and ensuring the safety and stability of the financial system.
Fifth, strengthen coordination among state management agencies, financial institutions, businesses, capital markets, and international partners to mobilize, allocate, and utilize financial resources effectively for green growth and sustainable national development.
Proposed 2% annual interest rate subsidy for green projects
Ms. Phạm Thị Thanh Tùng, Deputy Director of the Credit Department for Economic Sectors (SBV), noted that despite high green credit growth, its share remains at nearly 5% of total credit, with total outstanding loans reaching approximately 18.2 million billion VND.
Regarding incentives for green projects, Ms. Tùng mentioned that Resolution 68 on private economic development includes a policy to subsidize interest rates for green projects.
Implementing the Politburo’s directive, SBV is collaborating with the Ministry of Finance to submit a decree to the Government, proposing a 2% annual interest rate subsidy from the state budget for private enterprises and households borrowing for green and circular economy projects.
According to Ms. Tùng, the draft decree is expected to be submitted to the Government for approval in the near future and could be implemented from early 2026. The subsidy budget will be allocated to local governments. For effective implementation, coordination is needed between the interest rate subsidy decree, support mechanisms through funds, and the Prime Minister’s decision on eligible green and circular economy projects.
Ms. Phạm Thị Thanh Tâm, Deputy Director of the Financial Institutions Department (Ministry of Finance), reported that as of October 2025, outstanding green corporate bonds reached nearly $1 billion. She noted that this is a key channel for long-term capital mobilization for green projects. The Ministry of Finance is studying a pilot scheme for issuing green service bonds, expected to be submitted to the Government in 2026.
From a commercial bank perspective, Mr. Vương Văn Quý, Deputy Head of Credit Policy at Agribank, highlighted the growing capital demand for sustainable development, particularly in agriculture and rural areas. Transitioning to green agriculture, circular economies, and meeting ESG standards requires substantial financial resources.
Mr. Quý stated that Agribank has identified green growth as a core business strategy. By Q3 2025, Agribank’s green credit balance reached 28,355 billion VND, serving nearly 40,000 customers. Renewable and clean energy accounted for over 53%, sustainable forestry for over 24%, and green agriculture for over 21% of the bank’s total green credit.
Agribank also offers preferential credit packages for high-tech and clean agriculture, supporting green projects under the National Green Growth Strategy 2021–2030.
– 20:34 15/12/2025
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