Vietnam accelerates green finance and carbon market transition

Vietnam is accelerating its transition toward a green economy and carbon-neutral growth to meet its 2050 net-zero emissions commitment. This shift involves moving from traditional development models to low-carbon, circular, and sustainable practices to enhance national competitiveness and meet increasingly strict global environmental standards in trade and supply chains.

A key component of this transition is the development of green finance, particularly within the agricultural sector. While limited financing remains a hurdle for small-scale producers, domestic banks such as BIDV, VCB, HDBank, and Agribank have introduced green credit packages for high-tech agriculture, waste treatment, and emission reduction. By 2025, outstanding green agricultural loans from domestic banks reached approximately 150 trillion VND (5.77 billion USD).

Vietnam has also secured significant international support from organizations including the Green Climate Fund, the World Bank, and the Asian Development Bank, alongside bilateral aid from Japan, Germany, South Korea, and the Netherlands. Specific initiatives include BIDV’s funding for low-carbon rice farming in the Mekong Delta and HDBank’s investments in solar-powered farm projects.