Page 134 - Ebook HTKH 2024

MECHANISM AND POLICIES CONTRIBUTING TO PROMOTING

GREEN CREDIT GROWTH TO SUPPORT SUSTAINABLE
DEVELOPMENT

53
Hoang Dinh Minh , Nguyen Ha My , Tran Van Thuat , Thuy Anh Pham
52
54
55

Abstract: Faced with serious impacts of climate change, model selection Green growth has
become an inevitable trend for countries today. Vietnam also has clear directions to transition from a
"brown" to a "green" economy. In the National Strategy on Green Growth, the Banking industry, as one
of the pillars of the financial system, is assigned many important tasks; In which, unlocking credit capital
sources to contribute to "greening" investment capital flows is a focus. The process of synchronously
implementing solutions throughout the Industry has shown remarkable results; In particular, the growth
rate of outstanding credit loans for green fields from 2017 to 2023 will average about 22%/year.
However, the proportion of outstanding credit in this sector is still quite modest. Based on the analysis
of the current status of mechanisms and policies, the article has pointed out a number of limitations, as
well as proposed and recommended a number of solutions to continue to open up credit capital flows,
contributing to promoting economic growth green growth and sustainable development of the country.
Keyword: policy, green growth, green credit

1. Green growth and sustainable development have become a popular trend
and a key policy choice for many countries
Green growth and sustainable development have become a popular trend and a key
policy choice of many countries. The green growth model has been chosen to implement

measures that are beneficial to economic growth and development, while protecting
natural resources to ensure the supply of necessary resources and contribute to
prosperity. the country's prosperity in the long term. To implement green growth, the
banking system plays a very important role, shown in two aspects: (i) The activities of
banks themselves have a direct impact on the environment, through the application of
technology to digitize banking activities, apply e-banking, develop a paperless banking
model... to help save resources and reduce emissions;; (ii) Providing credit capital and

directly participating in the process of assessing and managing risks of investment
projects, including environmental and social risks; thereby, contributing to greening
investment capital flows, encouraging borrowers to convert projects and loan purposes
to environmentally friendly projects.
This article will focus on assessing the second aspect of banking's contribution to
green growth - through the process of providing credit capital, promoting the process of

transforming the economy from “brown” to “green”.
In Vietnam, the phrase “green credit” was first mentioned in the Law on
Environmental Protection (LEP) 2014, considered one of the “encouraged

52 Banking Strategy Institute, Email: minhktbk@gmail.com
53 Hanoi Open University
54 Hanoi Open University
55 Vrije Universiteit Brussels, Belgium

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