Trend of green economic development in Vietnam
The trend of green economic development to protect the environment and promote sustainable development is requiring a mechanism to encourage businesses to invest in green production, thereby developing green financial products and services.
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| Green economic development is quite good. (Source:tapchitaichinh.vn) |
In recent times, the Vietnamese financial market has made remarkable progress and is playing an increasingly important role in the economy. However, in the trend of integration and green economic development, the development of green and sustainable finance poses new opportunities and challenges for Vietnam's financial system.
According to Dr. Nguyen Kieu Lan Phuong from the Institute of Applied Technology and Sustainable Development under Nguyen Tat Thanh University, businesses should invest in green industries or develop environmentally friendly products. This not only enhances businesses’ image and reputation, but can also create sustainable revenue and promote business development.
Analyzing green credit in Ho Chi Minh City, Mr. Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam - Ho Chi Minh City Branch, said that green credit is still modest, only about 4.5% - 5% compared to total outstanding credit. However, the recent growth rate is quite good, always growing higher than the average credit growth rate of the sector.
According to Mr. Nguyen Duc Lenh, sustainable economic development must go hand in hand with the green-digital-circular economic transformation process. Based on the Government's action program, especially the National Strategy on Climate Change for the period until 2050, the State Bank of Vietnam has built action programs for the banking industry on green economic development; and awareness of bank officials on green banking, green economy and green credit has been raised. In terms of implementation, commercial banks are promoting green credit lending for projects such as green energy, green agriculture and activities to create green products.
Mr. Nguyen Duc Lenh said that the State Bank of Vietnam has been actively implementing green economic development policies, contributing to environmental protection and promoting sustainable development. In addition, commercial banks have been promoting lending for green projects, and offering green financial products and services to implement green economic development policies.
