Positive Signal for Sustainable Development: Vietnam’s Outstanding Green Credit Debt Grows by 22% Annually

This figure demonstrates the banking sector’s commitment to “greening” investment capital, reflecting its crucial role in ensuring sustainable development.

On April 17th, the State Bank of Vietnam (SBV) and the International Finance Corporation (IFC), with support from the Swiss State Secretariat for Economic Affairs (SECO), organized a “Training Course on Building Environmental, Climate, and Social Risk Management Systems in Lending Activities of Credit Institutions” in Ho Chi Minh City.

The event came to a conclusion that in the period of 2017-2023, outstanding green credit debt in Vietnam saw a notable annual average growth rate of over 22%. The energy sectors (renewable energy and clean energy) and green agriculture were the largest recipients of credit, accounting for nearly 45% and over 30% respectively.

Moreover, it is equally important to enhance the assessment of environmental and social risks in credit activities. Circular 17/2022/TT-NHNN imposed mandatory requirements for credit institutions to manage environmental risks, contributing to the quality improvement of funded projects and activities. Additionally, with support from international financial institutions such as IFC, the central bank has established systems for managing environmental and social risks, while actively participating in international forums for learning and sharing experiences.

According to Mr. Nguyen Duc Lenh, Deputy Director of the Ho Chi Minh City Branch of the State Bank of Vietnam, the banking sector plays a crucial role and has significant responsibility in providing financial resources to the economy and “greening” investment capital for sustainable development. Therefore, these figures and efforts demonstrate an increasingly high level of commitment and awareness from the banking sector regarding its contribution to the country’s sustainable development goals.