In early June, speaking at the seminar “Credit Solutions to Promote the Green Economy, Circular Economy and ESG – International Experience and Implementation Practices in Vietnam”, Deputy Governor of the State Bank of Vietnam Nguyen Ngoc Canh affirmed that green growth, the circular economy, and the implementation of environmental and social risk management are no longer optional but have become urgent requirements.

According to Deputy Governor Nguyen Ngoc Canh, to realise these objectives, alongside resources from the state budget and international financial resources, green credit has been identified as one of the key solutions to meeting the funding needs of the economy’s green transition.

In recent years, the banking sector has proactively implemented a range of measures to promote green growth and sustainable development. Specifically, the State Bank of Vietnam has set out orientations and objectives for the development of green credit, green banking, and environmental and social risk management in its banking sector development strategies.

The State Bank of Vietnam has also issued guidelines on green credit and implemented preferential credit policies for organic agriculture and agricultural production based on circular economy models. A clear example is the Project on One Million Hectares of High-Quality, Low-Emission Rice in the Mekong Delta, in which Agribank is regarded as a key implementing bank.

According to statistics from the State Bank of Vietnam, 82 credit institutions have so far recorded outstanding green credit totalling VND 828 trillion. The average annual growth rate during the 2017–2025 period exceeded 20%. Notably, outstanding loans subject to environmental and social risk assessment exceeded VND 5.1 quadrillion, nearly 25 times the level recorded at the end of 2017 and accounting for 27.7% of the economy’s total outstanding loans.

Many economic experts believe that VND 828 trillion in outstanding green credit can no longer be considered a pilot-scale figure. It shows that banks have begun to regard projects in renewable energy, cleaner production, energy efficiency, green agriculture and the circular economy as a genuine credit market. In addition, annual growth of more than 20% further indicates that this is not a short-term trend but a long-term strategy.

To comprehensively “green” capital flows, Agribank not only aims to provide financing for green projects undertaken by major corporations and enterprises but also extends green credit to individual customers and households. These practical and concrete actions affirm the Bank’s support for Vietnam’s commitment to achieving Net Zero by 2050.

Kylie Nguyen