The State Bank of Vietnam jointly held a policy dialogue with German development agency GIZ and the Ministry of Agriculture and Environment on credit solutions for the green economy, circular economy and environmental social and governance (ESG) standards, using the event to set out measures to channel more bank funding into sustainable projects. It said it is submitting to the government a draft decree for a 2 percent interest subsidy from the state budget for private enterprises, household businesses and individual business borrowers using bank loans for green and circular projects and projects that apply ESG standards. Existing measures include guidance on green credit, preferential lending policies for organic agriculture and circular agriculture, and lending under the one million hectare high-quality low-emission rice programme in the Mekong Delta. The central bank has also issued materials on environmental and social risk management in lending and ESG implementation for credit institutions. It said 82 credit institutions now have green credit outstanding totaling VND 828 trillion, with average annual growth above 20 percent from 2017 to 2025, while loans assessed for environmental and social risk exceed VND 5.1 quadrillion, almost 25 times the level at end-2017 and equal to 27.7 percent of total credit outstanding. The State Bank said the banking sector will continue implementing its action plan under the national green growth strategy, direct credit toward green production, clean technology, renewable energy and circular economy projects, and strengthen environmental and social risk management. Work with GIZ, the Ministry of Agriculture and Environment and other partners also continues on criteria for identifying green and circular projects and on an ESG implementation framework with supporting incentives.
State Bank of Vietnam2026-06-09
State Bank of Vietnam advances 2 percent interest subsidy proposal for private sector green and ESG projects
The State Bank of Vietnam, with GIZ and the Ministry of Agriculture and Environment, held a policy dialogue on credit solutions for the green and circular economy and ESG standards, and is submitting a draft decree for a 2 percent state-budget interest subsidy on bank loans for qualifying projects. It reported that 82 credit institutions now have green credit outstanding of VND 828 trillion and that loans assessed for environmental and social risk exceed VND 5.1 quadrillion, and said the banking sector will continue directing credit toward green production, clean technology, renewable energy and circular economy projects while developing ESG criteria and an implementation framework with partners.