With the demand for green capital reaching $700 billion, banks need the "synergy" of the capital market.

At the seminar "Diversifying Capital for Sustainable Development" organized by the Finance and Investment Newspaper on December 15th, Deputy Governor of the State Bank of Vietnam (SBV) Nguyen Ngoc Canh stated that as of November 30th, green credit outstanding reached approximately VND 750,000 billion, with an average growth rate of 21% per year during the 2017-2025 period (higher than the overall credit growth rate of the entire economy).

Báo Tin Tức•15/12/2025

Photo caption — Deputy Governor of the State Bank of Vietnam , Nguyen Ngoc Canh: "We need to diversify resources for green development." Photo: Organizing Committee

According to Deputy Governor Nguyen Ngoc Canh, the world is witnessing profound changes in climate, environment, and socio-economic development. In this context, green transition has become an inevitable trend of the times. Countries, including Vietnam, are gradually adjusting their development strategies towards sustainability, balancing economic growth goals with strong commitments to global climate goals, aiming for a low-carbon economy that adapts flexibly to the challenges of the era.

Specifically, Vietnam has issued and is implementing many strategies and plans consistent with the country's sustainable development orientation, especially in the era of national progress, towards the 100th anniversary of the country's founding in 2045.

According to a report by the Ministry of Finance , the financial resources needed to achieve national green growth targets and net-zero emissions by 2050 are substantial. Under a carbon neutral scenario, the total long-term investment required for green and sustainable economic development by 2050 is estimated at around US$670-700 billion, of which approximately US$368 billion (about 6.8% of GDP per year) is for climate change adaptation.

This requires strengthening and mobilizing all resources for the national green growth goal, especially from the green bond market, green credit, carbon market, and international funding sources, in addition to funding from the State budget.

According to the Deputy Governor, deeply aware of the importance of "green credit" and "sustainable finance," the State Bank of Vietnam has continuously improved the legal framework and policy mechanisms, and implemented comprehensive solutions to promote green credit activities; identified, assessed, and managed environmental and social risks in lending activities; thereby enhancing the responsibility of the banking system to contribute to and support the country's overall green growth goals.

On the part of credit institutions, banks have actively and proactively researched and developed green capital mobilization and green credit products to finance projects that bring environmental benefits, respond to climate change, and promote circular production models and sustainable linkages.

As of November 30th, outstanding green credit reached approximately VND 750 trillion, increasing by an average of 21% per year during the period 2017-September 2025, higher than the overall credit growth rate of the economy. This shows that banks and credit institutions are very interested in creating credit channels for green growth and sustainable development.

"Despite the banking sector's best efforts, the reality shows the need to diversify financial resources, requiring the participation of domestic and foreign capital channels, especially from the private sector and capital markets (in this case, the stock market), working together with the banking system to meet the requirements of green transformation and sustainable development of the country," the Deputy Governor stated.

Therefore, the State Bank of Vietnam's leadership believes that expanding green finance investment channels from various regions and markets not only contributes to reducing pressure on the banking system but, most importantly, creates conditions for mobilizing medium- and long-term capital more flexibly, safely, and effectively for the country's overall goals, in line with the global green finance trend.

According to the Deputy Governor, in order to find feasible and specific solutions to effectively mobilize and utilize these capital sources for the national green transformation, it is necessary to focus on clarifying the role of the capital market and the stock market in mobilizing medium and long-term resources for sustainable development. At the same time, it is necessary to research solutions for developing a green capital market, encouraging the issuance of sustainable financial instruments such as green bonds, sustainable bonds, and shares of businesses practicing ESG (Environmental, Social, and Governance); and simultaneously enhance the capacity of businesses and investors in accessing, using, and effectively monitoring these capital flows and financial products.

At the seminar, Mr. Pham Van Hoanh, Editor-in-Chief of the Finance and Investment Newspaper, affirmed that implementing sustainable development is a requirement for all countries to balance the three pillars of economy, society, and environment, ensuring prosperous growth without affecting future generations.

“Although significant progress has been made in mobilizing capital for sustainable development, the past five years have shown that the amount of capital mobilized remains modest compared to the needs. Some studies indicate that Vietnam needs approximately $20 billion annually for green transformation. This is a very large figure compared to the size of the economy, requiring a stronger diversification of capital mobilization sources, the addition of more appropriate financial instruments to attract domestic and international capital flows; and at the same time, creating a sustainable foundation for the green transformation process,” said Mr. Pham Van Hoanh.

Furthermore, to ensure that funding for sustainable development is provided to the right recipients, targets, and is used effectively, the legal framework still needs to be further improved to align more closely with high international standards. In lending activities, banks also need more technical support solutions in addition to loan packages to help customers standardize reporting and improve capital utilization efficiency.

For the business community, many experts believe that a change in governance mindset is needed, prioritizing information transparency and long-term commitments as assets to access cheap and sustainable capital. Simultaneously, it is necessary to incorporate international standards into reporting to increase credibility with financial institutions and invest in digital infrastructure to measure emissions.

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