On June 26, the Finance and Economics Magazine under the Ministry of Finance hosted the online forum “Developing the green bond market: A driver of sustainable growth.”
According to experts at the forum, to fulfil its commitment to achieve Net Zero by 2050, Viet Nam will need around 368 billion USD by 2040, equivalent to approximately 20 billion USD per year. This is a substantial sum, requiring the participation not only of the public sector but also the private sector, with the green bond market playing a crucial role in mobilising long-term capital.
Several organisations and enterprises have successfully issued green bonds, including: the People’s Committee of Ba Ria – Vung Tau Province; the Ho Chi Minh City State Financial Investment Company; EVNFinance; BIDV; Vietcombank; HDBank; I.D.I International Development and Investment Corporation; Hoa Binh – Xuan Mai Clean Water Company; and Techcombank.
Vu Chi Dung, Head of the Legal and International Affairs Department of the State Securities Commission, shared that the total value of green bonds issued in Viet Nam since 2021 has exceeded 1.4 billion USD. According to Dung, the Vietnamese green bond market is also attracting strong interest from international investors. In addition to profit expectations, investors also view green bonds as part of a responsible investment strategy. However, to continue developing the market, it is necessary to improve guidance on information disclosure, issuance standards, and monitoring of green capital usage.
Regarding market potential, Do Ngoc Quynh, Secretary-General of the Viet Nam Bond Market Association, noted that the capital demand for green development in Viet Nam is very high, and green bonds offer an especially effective funding channel due to their long-term tenor and stable cost of mobilisation. Quynh emphasised that not only the government but also local authorities and businesses can leverage this tool to implement infrastructure, renewable energy, and climate change mitigation projects.
However, the market has yet to develop commensurately with its potential. According to Nguyen Tung Anh, Head of Sustainable Finance at FiinRatings, one reason for this is that Viet Nam has not issued an official green taxonomy, making it difficult to identify and standardise green financial products. Additionally, the legal framework still lacks specific provisions on environmental criteria and the certification of projects eligible for green bond issuance.
Nevertheless, positive developments have been observed. According to Tung Anh, the size of the green bond market grew from 2.5 trillion VND in 2023 to nearly 7 trillion VND in 2024 — an increase of over 170%. It is forecasted that 2025 will be an even more dynamic period as incentives and support policies become clearer.
Tung Anh also stressed that in the medium and long term, compliance with green standards will become a prerequisite for businesses seeking access to preferential capital sources. Therefore, enterprises must begin now to develop green financial frameworks in line with international practices.
At the forum, many participants underscored the importance of promptly issuing a national green taxonomy — a core set of criteria to determine eligible activities for green bond issuance. Alongside this, mechanisms for monitoring and reporting on the use of capital must be transparent and aligned with objectives in order to build investor confidence and ensure sustainable market development.
Speakers also agreed that improving the legal framework and support policies is essential for the development of green finance. In parallel, the proactive role of investors and enterprises is equally crucial. They must take concrete actions to more easily access green capital flows and ensure that green funds are invested and used effectively.
