Paving the way for new trend
According to statistics from the State Bank of Vietnam (SBV), the number of credit institutions participating in green credit has grown significantly, from just five in 2017 to 50 institutions with outstanding green credit debt today.
As of the end of 2024, the total outstanding green credit nationwide reached approximately 680 trillion VND, accounting for over 4.3% of the total outstanding debt of the entire economy. In 2024, banks also redirected credit flows toward key agricultural regions. By the end of the year, credit institutions had provided the Mekong Delta region with a total of around 124 trillion VND for rice production and business activities. With the participation of dozens of commercial banks, preferential credit for the forestry and fisheries sectors increased from 15 trillion VND to 60 trillion VND. SBV is currently considering the expansion of the forestry and fisheries credit package to 100 trillion VND and broadening its scope to include the agriculture-forestry-fisheries sector.
In 2025, under the target of credit growth at 16% set by the government's and the SBV’s major banks such as BIDV, Agribank, and Vietcombank are taking the lead in green credit programmes. They are primarily focusing on organic agriculture, renewable energy, and key projects that drive socio-economic development and ensure national energy security. In 2024, Vietcombank’s green credit lending reached nearly 48 trillion VND, marking a 3.6% increase from the end of 2023. Meanwhile, Agribank's outstanding loans for green initiatives are estimated to have exceeded 27.8 trillion VND.
Even mid-sized banks like ACB are actively expanding their green credit offerings, creating more opportunities for green businesses. From a disbursement of less than 100 billion VND for green credit in 2023, ACB increased the figure to nearly 1.5 trillion VND in 2024, with plans to further expand the green credit package to between 3 trillion VND and 5 trillion VND.
Similarly, TPBank has disbursed nearly 7.4 trillion VND in green credit as of the end of 2024, making a significant contribution to the economy’s green transition. According to TPBank Chairman Do Minh Phu, green credit is becoming an inevitable trend, especially as many international markets impose strict environmental standards on imports and promote sustainable, eco-friendly production.
Obstacles remain due to lack of clear guidelines
Kim Hoang Co., Ltd., originally a business specialising in afforestation, processing, and exporting forestry products, has expanded into sustainable aquaculture over the past two years.
![Because there are no regulations stating that "assets such as fish cages can be used as collateral", banks find it difficult to accept and process loan applications.](https://image-en.nhandan.vn/w792/Uploaded/2025/aslxvtxwtys/2025_03_18/nuoi-hs-quang-ninh-9462-9205-918.jpg "Because there are no regulations stating that "assets such as fish cages can be used as collateral", banks find it difficult to accept and process loan applications.") |
Because there are no regulations stating that "assets such as fish cages can be used as collateral", banks find it difficult to accept and process loan applications. |
However, banks have been reluctant to approve loans for the company due to the lack of regulations on allowing assets such as fish cages and rafts to be used as collateral. According to the company’s Deputy Director Trinh The Hung, the investment cost for recyclable, environmentally friendly aquaculture equipment is extremely high. Yet, securing loans for such investments remains challenging due to the absence of collateral eligibility for these assets. Additionally, he noted that banks seem hesitant to engage in this sector due to the high risks involved and the lack of clear regulatory guidance.
The flow of capital into green credit remains obstructed due to the absence of a standardised set of criteria. Moreover, there are no specific guidelines from relevant ministries and agencies regarding the classification of green projects, which are considered a basis for financial institutions to assess and monitor green credit lending.
Governor of the State Bank of Vietnam Nguyen Thi Hong
While noting the difficulties in funding green projects, Agribank's Deputy General Director Phung Thi Binh provided a specific example: that banks must comply with lending regulations under the Law on Credit Institutions and related legal documents. In the aquaculture sector, floating fish cages and rafts are essential infrastructure for offshore farming, but they are not yet legally recognised as assets. As a result, they cannot be used as collateral for business loans.
With extensive experience monitoring the development of the green finance market, Nguyen Ba Hung, Chief Economist of the Asian Development Bank (ADB) in Vietnam, noted that although green credit is becoming a growing trend, its implementation still faces numerous obstacles. This makes it difficult for businesses to access green financing, particularly in terms of project selection, assessment, evaluation, and monitoring processes.
To address these challenges, several financial institutions, including VietinBank, Agribank, ACB, and TPBank, have proactively developed and published their own environmental and social standards to provide green credit to projects and borrowers.
According to Tran Hung Huy, Chairman of ACB’s Board of Directors, the bank has been introducing a sustainable finance framework for green credit since September 2024. ADB has been also working with international investment funds to expand capital sources for green production. Additionally, ACB has designed specialised financial products tailored for agricultural customers, creating flexible funding mechanisms and broadening access to green financial services.
