Need for comprehensive legal framework on green credit and green bonds

Many preferential credit packages

Photo caption — Mr. Pham Duc Son - Editor-in-Chief of Investor Magazine spoke at the Workshop on October 30.

Green credit is always a "hot" story when Vietnam committed to the NetZero target by 2050 at COP26 (26th Conference of the Parties to the United Nations Framework Convention on Climate Change).

At the workshop "Green energy transformation from the perspective of Resolution 70 of the Politburo" organized by Investor Magazine on October 30, Mr. Tran Hoai Nam, Deputy Director of Vietinbank's Corporate Customer Division, said that the total energy-related loans and balance of Vietinbank are currently several hundred thousand billion, of which more than 2 billion USD (60,000 billion VND) is for green energy. Financial resources for green energy come from both domestic and international sources.

With Vietinbank, in the past 2 years, this bank has organized many conferences with import-export enterprises and foreign direct investment (FDI) enterprises investing in Vietnam.

“When the issue of green transformation becomes a trade barrier for enterprises producing goods for export to the EU market, there is an urgent need for ESG (environment - social - governance) standards. Faced with this issue, many enterprises have expressed their desire for cheap capital for green transformation. VietinBank is building a system to mobilize resources, first from the sustainable development framework, issuing green bonds,” said Mr. Tran Hoai Nam.

Commercial banks are also actively looking for customers and cheap sources to lend for green projects. Mr. Tran Hoai Nam said that, along with the policy of the State Bank (SBV), in addition to ensuring energy security, VietinBank has participated in many preferential credit packages with green transformation such as lending 1 million hectares of rice to reduce emissions with the promise of disbursing 130,000 billion VND; participating with European financial institutions shows that the world or Europe is still very determined to make green transformation.

On August 20, the Politburo issued Resolution No. 70-NQ/TW on ensuring national energy security until 2030, with a vision to 2045. Resolution 70-NQ/TW clearly defines the viewpoint: Synchronously, reasonably and diversifying energy types; prioritizing the exploitation, thorough and effective use of renewable energy sources, new energy, and clean energy. Gradually transforming energy to meet the country's development requirements and international commitments.

At the workshop, Mr. Vuong Van Quy, Deputy Head of Credit Policy Department, Agribank, said that Agribank has implemented a variety of green credit programs with a total scale of tens of thousands of billion VND.

Some of these programs focus on green energy and renewable energy: The preferential green credit program with a scale of 30,000 billion VND, for investment projects in key industries and green fields, with a fixed interest rate of only 6.0%/year for 24 months, applicable until December 31. This program prioritizes renewable energy, clean agriculture and environmental protection projects, helping businesses reduce capital costs and promote green transformation.

“Expand investment in environmental protection projects funded by international organizations for wind, solar and biogas energy projects funded by international organizations, especially in the Mekong Delta and the Central Highlands to combat drought and salinity,” said Mr. Vuong Van Quy.

Pursuant to the direction of Resolution 70-NQ/TW, Agribank determined that green credit in general and credit for green energy in particular is one of the key contents in the long-term development roadmap, associated with digital transformation, building a modern bank and international integration.

“In the coming time, Agribank will continue to improve internal mechanisms and policies to promote green credit growth and manage environmental and social risks in credit granting activities. During the credit granting process, Agribank will combine project appraisal with environmental impact assessment, excluding projects that seriously affect the environment, focusing on renewable energy projects such as wind and solar power,” said Deputy Head of Credit Policy Department, Agribank.

Agribank will continue to research and develop more products and services that meet green standards according to Decision 21 and international standards, focusing on renewable energy, high technology and new energy sources.

Agribank representative proposed that it is necessary to complete the overall legal framework such as issuing unified regulations on green credit and green bonds; creating incentive mechanisms by giving preferential risk coefficients, reducing capital costs for green energy projects; rating green energy credit institutions; accessing international capital, climate funds and refinancing from the State Bank for renewable energy technology.

It is especially necessary to standardize data and make information transparent; build a database on greenhouse gas emissions and green energy credits, and apply digital technology to monitor renewable energy projects.

Lack of legal framework for green bonds

Regarding credit for green transformation, Ms. Pham Thi Thanh Tung, Deputy Director of the Department of Credit for Economic Sectors of the State Bank of Vietnam, said that the banking industry has had 10 years of promoting green credit.

After 10 years of promoting green credit, the results of green credit lending are quite positive. Accordingly, many credit institutions have lent for green projects in 12 categories. The average growth rate of green credit from 2017 to present has reached 22%. Particularly for renewable energy (RE), there has been remarkable growth.

“In 2017, outstanding loans for the renewable energy sector were only VND9,500 billion, but by the end of June 2025, the outstanding loans increased to nearly VND290,000 billion. If calculating the average credit growth rate of the renewable energy sector, it reached about 150% and was much higher than the average outstanding loan growth of green credit,” said Ms. Pham Thi Thanh Tung.

According to the State Bank, in the total outstanding green credit, the proportion of renewable energy loans accounts for the largest proportion at 39%. One of the four pillars of Resolution 70, finance plays an important role. Resources for implementing Resolution 70 come from credit sources - from commercial credit institutions systems, credit from policy banks.

In the investment credit loan portfolio, there are renewable energy loans. Commercial credit sources include Resolution 198 of the National Assembly for a 2% interest rate mechanism for investors implementing green projects, including renewable energy. “With the 2% support mechanism, a Decree is being developed to submit to the Government and will be completed in 2025. Sources from the capital market include the green bond market and the carbon credit trading floor,” said the Deputy Director of the State Bank of Vietnam’s Department of Credit for Economic Sectors.

However, regarding green bonds, according to the representative of the State Bank, Vietnam still lacks a legal framework to develop a Decision on green bonds. In addition, there is also a lack of a Decree on trading in the carbon market. The Ministry of Finance is coordinating with the Ministry of Agriculture and Environment (MARD) to submit this Decree to the Government.

“These Decrees are being implemented and will be completed in 2025 to run the interest rate support program. The green list has been issued but has not been implemented because Decision 21, although clearly defining whether the investor's project must be green or not according to the existing criteria, has not yet received guidance from the Ministry of Agriculture and Environment,” said Ms. Pham Thi Thanh Tung.

From a business perspective, Mr. Nguyen Tai Anh, Deputy General Director of Vietnam Electricity Group (EVN), said that EVN is playing a pivotal role in energy conversion and achieving the target of reducing emissions by 15-35% by 2030.

With a total investment of 3-4 billion USD/year, mobilizing social capital is necessary. Resolution 70 allows the participation of many economic sectors, helping to share the financial burden and promote the green transition process.

For the Government and ministries, EVN proposes to soon complete regulations, guidelines, legal frameworks and technical standards for new energy technologies such as: offshore wind power, energy storage, hydrogen technology, ammonia, biomass, carbon capture and storage; complete the legal corridor for the carbon market, ensuring synchronization with international regulations. In addition, EVN is assigned to preside over a number of key projects such as offshore wind power, expanded hydropower, ultra-high voltage transmission grid (HVDC)...

Source: https://baotintuc.vn/kinh-te/can-khung-phap-ly-tong-the-ve-tin-dung-xanh-trai-phieu-xanh-20251030182120092.htm