The State Bank of Vietnam, working with GIZ, IFC and SECO, convened a roundtable to accelerate implementation of the banking sector action plan for Vietnam’s 2021–2030 national green growth strategy and published a guidance handbook on environmental and social risk management systems for credit activities by credit institutions and foreign bank branches. A synthesis report of the roundtable was also prepared as a reference document for the banking sector. Discussion focused on the policy framework and resource needs for green growth, including an estimate of USD 670–700 billion in long-term investment demand to 2050 and an estimated funding shortfall of about USD 250 billion, with around USD 368 billion for climate adaptation. Topics included progress on the national green taxonomy (including a draft Prime Minister decision on environmental criteria and project verification), the status of the banking sector plan and COP26-related programme, and international practices on green finance. The State Bank of Vietnam reported that outstanding green credit exceeded VND 704.244 trillion by end-March 2025 (up 3.57% from end-2024), accounting for 4.3% of total credit and concentrated in renewable and clean energy (over 37%) and green agriculture (over 29%); average green credit growth in 2017–2024 was over 21.2% per year. Loans subject to environmental and social risk assessment reached VND 3.62 quadrillion, with nearly 1.3 million assessed loans. Looking ahead, the State Bank of Vietnam signalled further work on steering credit growth toward priority sectors, refining the legal and supervisory framework for green credit and environmental and social risk management, exploring interest-rate support mechanisms for private-sector green and circular-economy projects under National Assembly Resolution No. 198/2025/QH15, and developing climate-risk management in banking alongside continued training and international resource mobilisation.
State Bank of Vietnam 2025-07-18
State Bank of Vietnam releases environmental and social risk management handbook and reports green credit above VND 704 trillion
The State Bank of Vietnam, with GIZ, IFC, and SECO, held a roundtable to advance the banking sector's action plan for Vietnam's 2021–2030 green growth strategy, releasing a handbook on environmental and social risk management for credit activities. Discussions highlighted a USD 250 billion funding shortfall, progress on the national green taxonomy, and the banking sector plan's status. The bank reported outstanding green credit of VND 704.244 trillion by March 2025, with plans to refine the legal framework and explore interest-rate support for green projects.