The transition to digital and green agriculture is creating an urgent need for long-term, cost-effective capital flows that are aligned with sustainable development criteria. However, in reality, accessing green credit is not easy, even for businesses with experience in raising international capital.
At the seminar "Improving credit policies for digital and green agriculture" organized by the People's Representatives Newspaper, Mr. Nguyen Anh Tuan, Chief Financial Officer of PAN Group Joint Stock Company, stated that PAN invests in agriculture and aquaculture, organizing production in a chain such as rice and seafood, on a large scale, with estimated sales of approximately 17 trillion VND in 2025.
This group has successfully raised approximately $50 million in green credit from a British bank during the 2024-2025 period, and prior to that, $50 million in green bonds from ADB funding in 2019.
Based on PAN's experience, Mr. Tuan affirmed that green capital "is not for everyone." Financial institutions require businesses to meet a series of strict standards regarding Environmental, Social, and Governance (ESG). After disbursement, businesses also have to fulfill the obligation of periodic reporting, measuring and evaluating the impact of the capital flow according to specific criteria.
This requires a high level of data governance, information transparency, and operational capability. Without meeting these requirements, businesses are unlikely to pass the initial due diligence process.
In fact, before 2025, even domestic credit institutions faced difficulties in determining criteria for classifying green projects. The issuance of the Green Classification List under Decision 21/2025/QD-TTg has helped create a clearer framework, closer to international standards, thereby supporting businesses in self-assessing and accessing appropriate capital, Mr. Tuan said.
However, from a cost perspective, green capital may not necessarily be the optimal choice in the short term. If we compare costs purely, green capital could even be more expensive than domestic commercial loans, due to the associated compliance and operating costs, Mr. Tuan said.
Nevertheless, he asserted that if businesses have a long-term strategy, leverage advice and improvement pressure from financial institutions, then green capital can become a driving force for upgrading governance and creating a sustainable competitive advantage.
On the other hand, Mr. Tuan stated that one of the biggest obstacles for Vietnamese agricultural businesses is the fragmented and dispersed nature of production. The majority of businesses in the sector are small and medium-sized, and their raw material sources are fragmented, making meeting green criteria costly and difficult to implement uniformly.
For small-scale projects, the cost of green certification and approval is almost the same as for large projects, while the loan amount is low. This reduces the incentive for both businesses and banks to pursue green credit.
Furthermore, the risk-sharing mechanism remains a major gap. According to Mr. Tuan, while businesses can find product buyers when working with international partners, credit for farmers and agricultural insurance are very limited.
The lack of agricultural insurance forces banks to bear the risks themselves, especially given that agricultural production is heavily impacted by weather, diseases, and market fluctuations. This reduces their willingness to disburse loans, despite the high demand for capital.
"Agricultural insurance should be considered a condition for supporting credit, helping to form a risk-sharing mechanism. This will give banks more confidence in providing funding for agricultural projects," Mr. Tuan commented.
Source: https://daibieunhandan.vn/von-xanh-khong-danh-cho-tat-ca-10415325.html
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