At the seminar on “Promoting the Implementation of the Banking Sector’s Action Plan for the National Green Growth Strategy for the period of 2021-2030” on May 21, Deputy Governor Dao Minh Tu shared that, recognizing the importance of green credit, the State Bank took early action. Since 2015, it has integrated sustainable development goals into its credit policy directives and issued instructions to promote green credit growth and manage environmental and social risks in lending activities.
The State Bank has also set requirements for gradually increasing the proportion of credit investments in green projects and developing green banking in its strategies… “There has been a significant shift in the awareness of sustainable development, with many credit institutions establishing steering committees for green and digital transformation, integrating green growth targets into their business strategies, and actively mobilizing resources to participate in financing green sectors,” Mr. Tu assessed.
 Deputy Governor of the State Bank, Dao Minh Tu. |
However, Deputy Governor Dao Minh Tu also frankly acknowledged the challenges in implementing the banking sector’s action plan.
“The implementation of green credit has been uneven, with many credit institutions not reporting to the State Bank and having no green credit outstanding balance. The results of green credit have not been significant despite the potential for growth, due to the lack of a legal framework for a green portfolio,” the State Bank leader acknowledged. He also pointed out limitations in risk assessment tools, long payback periods for green investment projects, and unclear financial benefits. Mobilizing resources, especially international green finance, remains a challenge.
To address these challenges, the State Bank leader suggested that in addition to the efforts of the banking sector, there needs to be coordination among state management agencies and support and sharing of experiences and resources from international organizations.
According to statistics from the State Bank, as of March, 58 credit institutions had green credit outstanding balances, compared to only 15 in 2017. The average growth rate of green credit outstanding balance in the 2017-2024 period reached over 21%/year, higher than the credit growth rate for the economy. Additionally, 57 credit institutions conducted environmental and social risk assessments on a balance of VND 3,620 trillion, an increase of over 15 times compared to 2017.
Sharing at the seminar, Mr. Tran Phuong, Deputy General Director of BIDV, said that the bank has launched large-scale and specialized green credit packages by industry. As a result, as of December 31, 2024, BIDV’s total green credit balance reached VND 80,870 billion, accounting for 12% of the industry’s green credit balance, and provided green credit to 1,600 customers with 1,982 projects/plans…
However, Mr. Phuong pointed out the lack of regulations on environmental criteria and confirmation for projects eligible for green credit and green bond issuance. There are also no specific mechanisms or incentives for green credit and green bond issuance. In addition, the long payback periods and high investment requirements of environmental projects present challenges, along with limitations in the information management system and support tools for controlling and monitoring the green portfolio and the Environmental, Social, and Governance (ESG) standards due to an incomplete legal framework…
Ngoc Mai
– 22:20 21/05/2025
“The Banking Sector’s Early Embrace of Green Credit: Scaling Up and Accelerating Sustainable Lending”
On May 21, 2025, the State Bank of Vietnam (SBV) hosted a seminar to promote the implementation of the banking sector’s Action Plan for the National Green Growth Strategy for the period of 2021-2030. The event also witnessed the launch of the “Handbook of Environmental and Social Risk Management System in Credit Activities”. Mr. Dao Minh Tu, SBV’s Permanent Vice Governor, attended and chaired the seminar.
Failure to Embrace Circular Economy Will See Logistics Businesses Left Behind
If logistics companies fail to embrace green practices and adopt a circular economic model, they risk facing significant challenges and falling behind in the global supply chain. The time to act is now, or businesses will face the consequences and struggle to keep up with the evolving demands of the industry.
“State-Owned Enterprise Partners with Vingroup: Encourages 40,000 Employees to Go Electric with VinFast”
“VNPT is encouraging its employees to prioritize the use of Vingroup’s products and services, with a special focus on VinFast electric vehicles. This initiative is part of the company’s commitment to promoting green transformation in transportation. By embracing sustainable mobility, VNPT aims to lead by example and inspire a wider shift towards environmentally conscious choices.”
The Green Transition is No Longer Just a Game for the Big Players
In the new global landscape, the green transition is not just a game for the big players anymore; it is the inevitable path for all businesses that aspire to adapt and thrive.
OCB Wins the Green and Sustainable Private Bank in Vietnam Award from The Asian Banker
The Asian Banker, Asia’s leading financial services publication for the banking industry, has recently awarded Orient Commercial Joint Stock Bank (OCB) the title of “Most Sustainable Private-Sector Bank in Vietnam.” This prestigious accolade recognizes OCB’s outstanding commitment to environmental sustainability and responsibility in the private banking sector in Vietnam. The award highlights OCB’s dedication to incorporating green initiatives and practices into its operations, setting a benchmark for other financial institutions in the country.
