Vietnam is accelerating efforts to integrate green finance, as experts highlight both opportunities and challenges for small and medium-sized enterprises (SMEs) in securing capital, building resilience, and pursuing Net Zero growth.
At the international conference titled “Unlocking Global Green Financing to Drive Sustainable Development and Financial Inclusion in Vietnam,” held on Sept. 5, at Tea Resort Prenn in Da Lat, policymakers and industry underscored the role of green finance as a cornerstone of Vietnam’s sustainable development and Net Zero ambitions.
Competitive edge for SMEs
In his opening guidance remarks, Nguyen Quoc Hung, General Secretary of the Vietnam Banks Association, emphasized that green finance is not only a global trend but also an essential requirement: “Without green lending standards aligned with international practices, Vietnamese businesses may face obstacles accessing global supply chains.”
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Nguyen Quoc Hung, General Secretary of the Vietnam Banks Association, sharing guidance remarks at a conference on Sept. 5, 2025. Photo courtesy of Nam A Bank |
The conference highlighted that Vietnam’s dual commitment to Net Zero by 2050 and financial inclusion positions the country as an attractive destination for global green capital, with the private sector playing a pivotal role.
Tran Khai Hoan, Acting General Director of Nam A Bank, emphasized: “Green finance is no longer a debate. It is a development imperative.”
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Tran Khai Hoan, Acting General Director of Nam A Bank, speaks at the conference on Sept. 5, 2025. Photo courtesy of Nam A Bank |
Speakers noted that enterprises leading the green transformation can reap long-term benefits such as lower financing costs, stronger operational standards, government incentives, and enhanced competitiveness. However, many Vietnamese SMEs still face barriers such as limited access to green credit and insufficient infrastructure upgrades – critical hurdles in their transformation.
Beyond green lending, financial inclusion also emerged as a central theme. According to experts, financial inclusion initiatives help extend credit and risk-sharing mechanisms to smaller enterprises and vulnerable communities, ensuring that no business is left behind in the Net Zero transition. This combination of green finance and financial inclusion is expected to strengthen SME resilience and broaden participation in sustainable growth.
Challenges and support mechanisms
Weichuan Xu, IFC’s FIG Country Representative for the Mekong region, emphasized that while global green finance has advanced rapidly, Vietnam remains in its early stages. The country faces similar challenges as other emerging markets, alongside significant financial needs for its green transformation. Yet, this also presents substantial opportunities.
According to Xu, the Vietnamese government has implemented initiatives such as the Green Banking Development Project. Still, he stressed that relying solely on government action is insufficient; the private sector must play a central role.
Dhruv Malhotra, Vice President at BlueOrchard, acknowledged Vietnam’s strong GDP growth and export momentum as enablers for green finance, while warning of persistent climate risks. He called for mechanisms such as microinsurance and capacity-building programs to strengthen SME resilience. Malhotra also emphasized the role of intermediary institutions in helping SMEs access protective tools and resources essential for sustainable operations.
Addressing climate challenges in green transitioning, Dr. Vo Tri Thanh, Director of the Institute for Brand and Competitiveness Strategy, noted that climate change costs Vietnam an estimated 3-5% of GDP annually.
“Green finance is indispensable to sustaining growth and fulfilling Net Zero commitments,” Thanh said.
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Speakers in the first panel discussion “Unlocking Global Green Financing”. Photo courtesy of Nam A Bank |
Policy framework, financial inclusion, and institutional innovation
Conference speakers highlighted global momentum, noting that sustainable bond market surpassed $6.2 trillion by the end of 2024. Meanwhile, the World Bank estimates Vietnam will need to mobilize capital equivalent to 6.8% of GDP annually (around $368 billion) to achieve Net Zero, presenting both challenges and investment opportunities.
From the capital market perspective, Do Ngoc Quynh, General Secretary of the Vietnam Bond Market Association (VBMA), highlighted that green finance must be both transformative and practical:
“Every business model must first be financially viable. Even when pursuing green goals, investors require projects to operate effectively.”
Quynh also identified the lack of a “common language,” such as a national Green Taxonomy, as the biggest bottleneck to domestic green finance. He welcomed the government’s Decision No. 21/2025, which defines a green classification list, creates the long-awaited unified standards to support policy implementation and remove obstacles in the domestic capital market.
Similarly, Vo Hoang Hai, Deputy CEO of Nam A Bank, stressed the importance of adapting global standards to Vietnam’s context. “Nam A Bank, together with partners like IFC, responsAbility, and BlueOrchard, aims not only to mobilize capital but also to enhance governance, transparency, and credibility of Vietnamese enterprises on the global stage,” Hai said.
He reaffirmed Nam A Bank’s pioneering role in green banking, citing its early adoption to robust environmental and social risk management frameworks and its leadership in launching green lending programs.
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Assoc. Prof. Dr. Nguyen Huu Huan speaks in the second panel discussion. Photo courtesy of Nam A Bank |
Assoc. Prof. Dr. Nguyen Huu Huan introduced the proposed Ho Chi Minh City International Financial Center (IFC) as a potential game-changer: a hub for efficiently channeling international green capital, potentially unlocking $2-3 billion annually with disbursement timelines as short as 1-7 days.
“When the market is established and the legal framework is in place, transparency will be enhanced. This is an important factor for investment funds to disburse with greater confidence,” Huan said.
Experts also highlighted that beyond capital flows, the IFC could serve as a platform for knowledge transfer, financial inclusion programs, and SME capacity-building. This would ensure that small SMEs beneficiaries of green finance but also active contributors to Vietnam’s sustainable growth journey.
