Affirming its role as a key state-owned commercial bank, Agribank is gradually advancing its ESG orientation as part of its long-term development strategy, closely linking its financial activities with environmental, social, and governance considerations. As Viet Nam’s economy faces the urgent need to transition toward a green growth model, adapt to climate change, and fulfill international commitments on emissions reduction, the mobilization of capital for sustainable development has become increasingly important. In this context, green bonds are regarded as an effective instrument for mobilizing medium- and long-term capital for environmentally friendly projects.

By nature, green bonds are capital-raising instruments dedicated exclusively to projects that deliver clear environmental benefits, including sustainable agriculture, renewable energy, green infrastructure, and efficient natural resource management. Compared with conventional bonds, green bonds place stronger emphasis on transparency in the use of proceeds, rigorous monitoring mechanisms, and regular reporting in accordance with internationally recognized ESG standards. Globally, since the signing of the Paris Agreement in 2015, the green bond market has expanded rapidly, becoming an important channel for financing the transition toward a low-carbon economy and sustainable development.

In Viet Nam, demand for capital to support green growth is projected to be substantial, while state budget resources remain limited. The formal recognition of green credit and green bonds under the 2020 Law on Environmental Protection has clearly affirmed the country’s orientation toward sustainable financial development, while creating a legal foundation for the development of the green bond market. Within this framework, the banking system—particularly state-owned commercial banks—plays a key role in mobilizing and channeling capital toward green projects.

In this broader context, commercial banks are not only issuers and distributors of bonds, but also intermediaries that channel capital from financial markets to projects in the real economy. International experience shows that banks that proactively build green credit portfolios and establish robust ESG governance frameworks gain advantages in accessing the green bond market. In Viet Nam, many banks are adopting a gradual and cautious approach to participation in this market. Among them, Agribank represents a notable case, as it has oriented its activities toward expanding green credit and gradually aligning capital mobilization with sustainable development objectives.

Kylie Nguyen