On June 26, the Economic-Finance Magazine ( Ministry of Finance ) organized an online seminar "Developing the green bond market: Seeking opportunities on the journey to Net Zero".
According to experts at the seminar, to fulfill the commitment to achieve Net Zero by 2050, Vietnam needs up to 368 billion USD for the period up to 2040, equivalent to about 20 billion USD per year. This is a very large number, requiring the participation of not only the public sector but also the private sector, in which the green bond market plays a key role in mobilizing long-term capital.
Some agencies and enterprises have successfully issued green bonds such as: People's Committee of Ba Ria - Vung Tau province; Ho Chi Minh City State Financial Investment Company; Electricity Finance Joint Stock Company (EVNFinance); BIDV Bank; Vietcombank; HDBank; IDI Multinational Investment and Development Company; Hoa Binh - Xuan Mai Clean Water Company, Techcombank...
Mr. Vu Chi Dung, Head of the Legal and External Affairs Department, State Securities Commission, said that from 2021 to now, the total value of green bonds issued in Vietnam has reached more than 1.4 billion USD. According to Mr. Dung, the Vietnamese green bond market is also attracting great attention from international investors. In addition to profit expectations, investors also see this as part of a responsible investment strategy. However, to continue to develop, it is necessary to complete guidelines on information disclosure, issuance standards and monitoring of green capital use.
Regarding market potential, Mr. Do Ngoc Quynh, General Secretary of the Vietnam Bond Market Association, said that the demand for capital for green development in Vietnam is very large, and green bonds are a particularly effective capital channel, thanks to the advantages of long terms and stable mobilization costs. Mr. Quynh said that not only the Government but also localities and enterprises can take advantage of this tool to implement infrastructure projects, renewable energy, and climate change response, etc.
However, the market has not yet developed commensurate with its potential. Part of the reason, according to Mr. Nguyen Tung Anh, Head of Sustainable Finance at FiinRatings, is that Vietnam has not yet issued an official green classification system, making it difficult to identify and standardize green financial products. In addition, the legal framework lacks specific regulations on environmental criteria as well as the certification of green bond issuance projects.
However, positive changes have been recorded. According to Mr. Tung Anh, the size of the green bond market has increased from VND2,500 billion in 2023 to nearly VND7,000 billion in 2024, an increase of more than 170%. It is forecasted that 2025 will be an even more exciting period when preferential and support policies are clearly completed.
Mr. Tung Anh also noted that, in the medium and long term, compliance with green standards will become a mandatory condition if businesses want to access preferential capital sources. Therefore, from now on, businesses need to proactively build a green financial framework in line with international practices.
At the seminar, many opinions emphasized the importance of soon issuing the National Green Classification List, a set of key criteria to help identify activities eligible for issuing green bonds. Along with that, the mechanism for monitoring and reporting on capital use also needs to be transparent, ensuring the right goals, helping investors feel secure and the market develop sustainably.
Opinions also agreed that the completion of the legal framework and support policies is an important factor for the development of green finance. In addition, the proactive role of investors and enterprises is also very important. Investors and enterprises need to take specific actions to easily access green capital as well as ensure that green capital is invested and used effectively.
Source: https://nhandan.vn/phat-trien-thi-truong-trai-phieu-xanh-dong-luc-thuc-day-tang-truong-ben-vung-post889725.html
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