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Banks in Vietnam eye regulatory support to boost green finance

Associated Press of Pakistan by Associated Press of Pakistan
March 28, 2023
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HANOI, March 28 (Xinhua/APP): Having a regulation framework in place will help Vietnamese banks align their businesses with the country’s low-carbon economic growth pathway, the Vietnam News reported on Tuesday.

Financial institutions in Vietnam are managing to boost financing to fund green projects, however, green loan market in the country remains relatively small due to the lack of regulatory support, according to industry experts.

Green or sustainability-linked loans, mostly channeled to green agriculture and renewable energy investments, in Vietnam’s banking sector accounted for only 4.2 percent of total loans at the end of 2022, up 12.9 percent from a year earlier, to around 500 trillion Vietnamese dong (21.2 billion U.S. dollars), the central bank’s data showed.

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