The State Bank of Vietnam published a research article examining how a “green finance–carbon market” connection model could mobilise green capital for greenhouse-gas mitigation programmes and projects, while supporting the development of green financial instruments anchored in carbon-market activity. The paper frames green finance and a domestic carbon market as two core pillars for Vietnam’s sustainable development trajectory and argues that tighter linkage would help direct funding to emissions-reduction activities and expand carbon-credit generation and trading. The article reviews Vietnam’s green-finance landscape, noting that green credit outstanding reached around VND 680 trillion by end-2024, representing more than 4.3% of total credit and concentrated in renewable and clean energy and green agriculture. It cites Vietnamese issuance of green, social and sustainability bonds totalling nearly VND 33.5 trillion over 2016–2024, with outstanding green and sustainability bonds exceeding USD 1 billion in 2024, up 25% year on year, and points to market initiatives such as the Vietnam Sustainability Index (VNSI). On policy design, it recommends strengthening and aligning the legal framework for green finance, the carbon market and their interlinkages, tightening emissions management and oversight in line with carbon-market phases, building domestic–international carbon-market connectivity with assessment criteria and a domestically produced carbon-credit list aligned to international standards, and easing access to green funding through measures such as simplifying green-bond issuance conditions and allowing green bonds as collateral for low-interest loans. It also calls for developing green investment banking capacity and encourages businesses to reduce emissions via technology transition, implement ESG more systematically, and improve greenhouse-gas measurement, control and reporting processes.

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