Green Credit - Green Industrial Park

Promoting “green” lending

In 2024, the regional economic scale will be about VND546,468 billion. Local economies will grow quite well: Thua Thien Hue (8.15%), Da Nang (7.51%), Quang Nam (7.1%), Quang Ngai (4.07%) and Quang Tri (5.97%). Along with improving the investment environment, provinces and cities are aiming for sustainable development through participating in many green credit programs.

In line with the green development orientation of localities, the system of credit institutions has implemented preferential credit packages for environmentally friendly fields: high-tech agriculture, clean energy, water supply and rural environmental sanitation... At the same time, banks also implement debt restructuring policies, maintaining debt groups for subjects affected by climate change, natural disasters, and epidemics.

Many commercial banks are taking the lead in implementing green credit, such as: BIDV providing a package of more than VND 19,000 billion for renewable energy projects, clean water treatment, light industry; Agribank implementing a package of VND 10,000 billion for organic agriculture, renewable energy with interest rates from 3.5%/year; ACB has a package of VND 2,000 billion for industries in the "green" category...

Preferential capital supports many businesses to develop in a sustainable direction. Quan Chau Company Limited (North Chu Lai Industrial Park, Quang Nam) invested in a solar power system thanks to a loan from BIDV, helping businesses expand production and reduce costs. Similarly, RTS Renewable Technology Solutions Joint Stock Company (Tam Ky, Quang Nam) has built a wastewater reuse plant with a capacity of 26,000 m³/day and night with the support of VietinBank Quang Nam. This is one of the pioneering projects on industrial wastewater reuse in Vietnam, contributing to environmental protection and resource conservation.

However, many businesses are still facing difficulties in their journey to sustainable development due to the high cost of investing in green technology. Therefore, preferential credit plays an important role in helping businesses overcome capital barriers and gradually adapt to green production standards.

Central Vietnam is making efforts to unblock green credit capital flows.

Need to improve legal corridor

As of the end of March 2025, there were 30 branches of credit institutions in Region 9 implementing green credit, with a total outstanding loan balance of about VND 10,482 billion, accounting for nearly 2% of the total outstanding loan balance in the region. Loans are mainly focused on the renewable and clean energy sector (35.51%); Common interest rates for short-term loans range from 4 - 7%/year, medium and long-term loans range from 9 - 11%/year. Some special sectors are applied interest rates below 4%/year.

In addition, banks also reform administrative procedures and digitize processes to facilitate businesses' access to green credit. The State Bank of Vietnam, Region 9 Branch, actively connects banks with businesses to remove difficulties in accessing capital and promote green finance.

Despite many positive changes, the scale of green credit is still quite small compared to its potential. Many businesses operating in important areas such as environmental protection, green transport, sustainable construction have not yet effectively accessed capital sources. The main reason is that the investment capital is large, the payback period is long, while the mobilized capital of credit institutions is mainly short-term.

A significant barrier is the lack of specific criteria for defining “green” projects. Although general guidelines exist, they are not detailed enough for banks and businesses to apply consistently. This makes it difficult to assess, grant credit, and monitor the effectiveness of loans.

In addition, many businesses, especially SMEs, are not fully aware of the benefits of green credit or have not yet accessed modern production methods, and high operating costs increase the risk of bad debt with green loans.

Mr. Le Anh Xuan, Director of the State Bank of Vietnam, Region 9 Branch, said that in the coming time, the unit will continue to direct credit institutions to strongly implement the Green Banking Development Project, promote green financial products and increase the proportion of green credit in total outstanding loans; At the same time, focus on supporting businesses to invest in environmentally friendly fields, prioritize high technology, and reduce costs to reduce loan interest rates.

At the same time, the banking sector will promote communication, raise public and business awareness of green credit; promote the application of digital technology to make it transparent and monitor the effective use of loans, ensuring that green credit truly becomes a driving force for sustainable economic development in the Central region and the whole country.

Source: https://thoibaonganhang.vn/tin-dung-xanh-khu-cong-nghiep-xanh-163916.html