Agribank, Vietnam’s leading state-owned commercial bank dedicated to agriculture and rural development, is playing a pivotal role in advancing the country’s sustainable development goals through its green credit initiatives. These efforts align with Vietnam’s national green growth strategy for 2021–2030 and contribute significantly to the global green finance movement.

In May 2025, Agribank participated in a seminar on Accelerating the Implementation of the Banking Sector’s Action Plan for the National Green Growth Strategy for 2021–2030, co-organized by the State Bank of Vietnam (SBV), the German Agency for International Cooperation (GIZ), and the International Finance Corporation (IFC). This event underscored Agribank’s commitment to supporting green growth and sustainable development in the banking sector.

Agribank has established a comprehensive green credit framework, offering preferential loan packages totaling over VND 90,000 billion (approximately USD 3.8 billion) to finance projects in key green sectors. These include VND 30,000 billion for green industries, VND 50,000 billion for high-tech and clean agriculture, and VND 10,000 billion for individual customers with interest rates starting as low as 3.5% per year. As of the first quarter of 2025, Agribank had over 41,600 customers benefiting from green credit, with a total outstanding green loan balance of nearly VND 29,300 billion.

Agribank’s green credit initiatives prioritize projects that promote clean energy, sustainable agriculture, and environmental protection. Significant investments have been made in renewable energy, sustainable forestry, and green agriculture. For instance, loans for renewable and clean energy projects accounted for over 52% of the total green credit balance, while sustainable forestry and green agriculture loans represented nearly 24% and over 23%, respectively.

In addition to financial support, Agribank is actively involved in implementing national programs aimed at reducing greenhouse gas emissions and promoting sustainable agricultural practices. A notable example is the bank’s participation in a project to develop one million hectares of high-quality, low-emission rice cultivation in the Mekong Delta by 2030.

Despite these achievements, Agribank faces challenges in the green credit sector, including an incomplete legal framework for green asset classification, limited access to international green finance, and a shortage of personnel with expertise in sustainable finance. To address these issues, Agribank has proposed that the SBV expedite the development of regulations on environmental and social risk management, establish an environmental database to support credit activities, and organize advanced training programs on Environmental, Social, and Governance (ESG) standards.

Looking ahead, Agribank is committed to continuing its collaboration with the banking sector to effectively implement the National Green Growth Strategy for 2021–2030. Agribank plans to intensify innovation and diversify green financial products and solutions, contributing to building a green and sustainable economy in Vietnam.

Through these concerted efforts, Agribank is not only supporting the country’s transition to a green economy but also positioning itself as a leader in sustainable banking practices in the region.

Kylie Nguyen