Green Finance in Da Nang - Strategic positioning from the carbon market "niche"

In the context that the Government and localities are making great efforts to put the Vietnam International Financial Center into operation, green finance has emerged as a strategic focus in the country's sustainable economic development orientation, especially in Da Nang city.

Da Nang has many unique advantages to develop green finance at the regional level. Photo: Ha Xuyen Khe

Green financial positioning

As one of the two focal points of the International Financial Center, Da Nang is assigned the responsibility of developing green finance according to Resolution No. 29-NQ/TU of the Da Nang City Party Committee and the Resolution of the National Assembly approved on June 27, 2025. Building a green finance pillar not only strengthens Vietnam's commitment to the goal of net zero emissions by 2050 but also creates a foundation for Da Nang to affirm its position as an ecological, smart and sustainable urban area of ​​the country.

Green finance is identified as one of the three main pillars alongside digital finance and cross-border services in the strategy for developing an international financial center. Da Nang aims to develop a sustainable financial ecosystem where capital flows not only promote growth but also create benefits for the environment and the community. This orientation includes the development of green financial tools and services such as carbon credit trading floors, green investment funds and products serving renewable energy, ecotourism and the marine economy .

Making green finance a strategic pillar helps Da Nang shape its brand as a professional international financial center, closely linked to the sustainable development model and affirms Vietnam's pioneering role in the regional green economy.

The advantages of pursuing the voluntary carbon “niche”

From the perspective of a financial researcher, Associate Professor Dr. Dang Tung Lam - Editor-in-Chief of the Journal of Economic Sciences, University of Economics (University of Danang) believes that Danang should choose the strategic “niche” of the carbon credit market, especially in the voluntary segment. Because according to him, the city has four important advantages to develop this market.

First, the sandbox mechanism gives Da Nang space to test new models of the International Financial Center. The city is allowed to organize a voluntary carbon trading floor, issue digital asset codes for carbon credits or test new MRV models. This is a prerequisite (that other cities find difficult to achieve) to take the lead in creating national standards for carbon trading and credit transparency mechanisms.

Second, Da Nang has a strong digital foundation. The e-government ecosystem, data centers and technology community are important foundations that allow the city to build and operate a transparent carbon market. Technologies such as blockchain for credit authentication or AI and satellite imagery for monitoring, measuring and verification have proven superior in Singapore and the EU. With the available foundation, Da Nang can completely deploy these systems quickly according to international standards.

The third advantage comes from geographical factors, the Central and Central Highlands are the regions with large natural carbon reserves in Vietnam. This region has a significant area of ​​natural forests and diverse ecosystems.

At the same time, the region also has a special advantage in renewable energy with large-scale wind and solar power farms in Quang Tri, Quang Ngai, Gia Lai or Dak Lak. These projects can generate carbon credits in the form of emission reductions if verified. This regional resource advantage allows Da Nang not only to act as a transaction intermediary like Singapore but also to participate in the carbon credit creation value chain such as credit trading, developing high-quality credits, ensuring a stable supply of green credits, linked to local sustainable development.

Fourth, Da Nang’s favorable living environment and geo-economic location are important plus points, supporting the attraction of high-quality human resources in finance, technology and environment. This is a necessary factor to build a professional and sustainable carbon market.

With the above four advantages, Da Nang has the potential to develop in the direction of both trading and creating high-quality carbon credits. This puts the city in a position to become the carbon hub of ASEAN in the future.

To make Danang green financial center regional

To realize these goals, according to Associate Professor Dr. Dang Tung Lam, Da Nang needs to focus on a number of key solutions. First is to complete a flexible legal framework and operate a pilot mechanism specifically for carbon finance. The city needs to establish a specialized coordinating agency to ensure transparency, consistency and avoid fragmentation of data or processes.

At the same time, Da Nang must invest in modern trading infrastructure, apply digital technology and build an MRV system that meets international standards to ensure carbon credits are valuable and recognized in the global market. This is an important condition to attract international investors.

Another task is to develop interdisciplinary human resources combining finance, technology and environment. This requires close cooperation between the government, universities, research institutes and international organizations. From there, the city can form a team of experts capable of participating in everything from project inspection to trading floor operation and credit appraisal.

In addition, Da Nang needs to attract strategic investors and gradually build a regional green finance brand. When operated synchronously, the Da Nang International Financial Center can become an important connection point for green capital flows and carbon credit markets domestically and regionally.

Source: https://baodanang.vn/tai-chinh-xanh-da-nang-dinh-vi-chien-luoc-tu-ngach-thi-truong-carbon-3310999.html