In the context of Vietnam’s commitment to achieving net-zero emissions by 2050, the demand for financial resources to support green growth is becoming increasingly urgent. According to estimates from international organizations and regulatory authorities, total capital demand for sustainable development could reach hundreds of billions of USD in the coming decades. In response, Agribank has proactively implemented a range of comprehensive solutions to expand capital sources for green projects, thereby contributing to the transition toward a more sustainable economy.

With its extensive network and strong connection to the agriculture and rural sectors, Agribank is currently one of the commercial banks with the largest green credit portfolios in the banking system. As of the third quarter of 2025, Agribank’s outstanding green credit reached approximately VND 28,355 billion, serving nearly 40,000 customers nationwide. This capital has been allocated across key sectors, including renewable and clean energy (accounting for over 53%), sustainable forestry (over 24%), and green, high-tech agriculture (around 21%).

Beyond providing financing, Agribank also acts as a trusted partner accompanying enterprises, cooperatives, and individuals in transitioning to environmentally friendly production models. The Bank has implemented a number of large-scale preferential credit programs to support circular economy models and emission reduction initiatives, thereby enhancing climate resilience and generating sustainable value for the economy.

To ensure that green capital is utilized effectively and for the intended purposes, Agribank places strong emphasis on building a governance framework aligned with ESG (Environmental, Social, and Governance) standards. ESG criteria are integrated throughout the credit process, from appraisal and risk management to post-disbursement monitoring, helping to control environmental risks and minimize the risk of “greenwashing” in investment activities. At the same time, this approach encourages businesses to proactively adopt sustainable practices in order to access preferential financing.

In parallel with expanding green lending, Agribank has taken the lead in diversifying its funding sources through the issuance of bonds to support green credit. As of the end of 2025, the Bank successfully issued a private placement of bonds worth VND 5,000 billion with a two-year maturity, with proceeds earmarked for green projects from the outset. This represents an important step in establishing stable medium- and long-term funding, reducing liquidity pressure, and enhancing the Bank’s ability to design preferential credit packages tailored to the characteristics of long-term green projects.

The issuance of bonds linked to green credit also serves as a foundation for Agribank to move toward adopting international standards in green finance, opening up opportunities to access lower-cost funding from global climate investment funds in the future.

Through a strategic combination of expanding preferential credit, strengthening ESG-based governance, and developing new funding instruments, Agribank is steadily reinforcing its role as a leading bank in channeling capital toward green development in Vietnam. These efforts not only contribute to the realization of sustainable growth objectives but also lay a solid financial foundation for the economy to transition toward a greener, more inclusive, and climate-resilient future.

Kylie Nguyen