Green credit - a support for green growth

According to the State Bank's report, outstanding green credit in the banking system has grown rapidly in both scale and speed. From a green credit balance of only VND 180 trillion in 2017, by the end of March 2025, 58 credit institutions had generated green credit balances with outstanding loans reaching over VND 704,244 billion, an increase of 3.5% compared to the end of 2024 and accounting for 4.3% of total outstanding loans in the whole economy . Accordingly, the average growth rate of green credit balance reached over 21% per year in the period 2017-2024, higher than the credit growth rate of the whole economy.

Scene of the discussion. (Photo: VOV.VN)

Ms. Pham Thi Thanh Tung, Deputy Director of the Department of Credit for Economic Sectors under the State Bank, said: We will continue to monitor and urge the implementation of banks. We will also promptly provide guidance on green credit activities for the green portfolio after the competent authorities submit to the Prime Minister for promulgation of this green portfolio. The State Bank will also continue to facilitate credit institutions through negotiations to seek international funding sources and, in particular, will continue to implement training to support the green growth process of credit institutions.

Through the seminar, the State Bank and financial institutions and international partners affirmed to further strengthen cooperation in promoting green and sustainable finance in the banking sector and contributing to the goal of developing a green, inclusive and sustainable economy in Vietnam.

To support commercial banks in identifying green projects and sectors for green credit lending, the State Bank of Vietnam has collaborated with the International Finance Corporation (IFC) to compile and publish the Environmental and Social Risk Management System (ESMS) Handbook. The handbook was developed based on international practices, aiming to support credit institutions in building and effectively operating an environmental and social risk management system in credit granting activities, contributing to the implementation of environmental, social and governance (ESG) standards and towards sustainable finance in Vietnam.

Deputy Governor of the State Bank Dao Minh Tu commented: This is the first time a handbook has been published to guide the implementation of green credit. The handbook will have a very positive effect, helping commercial banks, which is considered a handbook for professional staff, as well as managers, to make decisions for investments such as capital, especially medium and long-term capital, ensuring efficiency as well as assessing risks in the process of organizing and implementing such credit.

According to VOV.VN
https://vov.vn/kinh-te/tin-dung-xanh-be-do-cho-tang-truong-xanh-post1201069.vov

Source: https://thoidai.com.vn/tin-dung-xanh-be-do-cho-tang-truong-xanh-213718.html