Participants in the workshop on green credit. (Photo: VNA)Hanoi (VNA) – Vietnam’s green credit balanceaccounted for about 4.2% of the economy’s total credit balance by June 30,2023, according to the State Bank of Vietnam (SBV).
In the 2017-2022 period, the yearly growth rate of greencredit reached more than 23%.
Speaking at a workshop on green credit held on September 9,SBV Deputy Governor Dao Minh Tu said that Vietnam’s banking industry has beenstriving to implement the National Strategy on Green Growth for the 2021-2030 period with a vision to 2050.
It has approved the project on green bank development,promulgated an action programme to implement the national green growthstrategy, circular guiding credit institutions on managing environmental risksin credit granting activities, and integrated the goal of increasing theproportion of green credit balance in the total credit balance.
Tu said that among the 12 areas that the SBV guides creditinstitutions to offer green credit, outstanding loans focus mainly on renewableenergy sectors/clean energy (45%), and green agriculture (31%). Creditinstitutions have enhanced the assessment of environmental and social risks incredit-granting activities.
According to Deputy Director General of the SBV Department ofCredit for Economic Sectors Nguyen Xuan Bac, Vietnam is considered one of the 38developing markets with significant progress in promoting the financingindustry towards sustainable development.
The country ranked high among Asian and global countries inpolicies related to national self-determined contributions (NDCs) - animportant content of the Paris Agreement.
Bac said despite positive progress, greencredit still faces difficulties, for example, a shortage of national regulationson criteria to identify green projects.
In addition, granting green credit requires in-depthtechnical environmental factors, which will make it difficult for creditofficers to appraise and evaluate the effectiveness of the project and thecustomer's ability to repay debt.
He said it’s necessary to improve the legal framework anddevelop a roadmap to implement policy mechanisms to support green industriesand attract investors to green projects.
Nguyen Thi Thu Ha, head of the Financial InstitutionsDepartment of Vietnam Bank for Agriculture and Rural Development (Agribank), said the bank has been paying much attention to developing green credit.
Agribank has nearly 70% of the outstanding loans in the field ofrural agriculture, so developing green credit is very important to it, shesaid./.
