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environmental protection activities” (Clause 7, Article 6 of the LEP 2014). The LEP
2020 provides a more specific definition of green credit. Accordingly, green credit is

credit granted for investment projects: (a) Efficient use of natural resources;
(b) Responding to climate change; (c) Waste management; (d) Pollution treatment,
improving environmental quality; (e) Restoring natural ecosystems; (f) Conserving
nature and biodiversity; (g) Creating other environmental benefits (Article 149). At the
same time, the Law stipulates that lending activities of credit institutions (CIs) and
foreign bank branches in Vietnam for investment projects must comply with regulations
on environmental risk management in lending activities. Thus, the role and obligations
of the banking system associated with green credit have been more clearly legalized.

2. Policy mechanisms to promote green credit growth
In Vietnam, recognizing the importance of ESG practices in banking activities, the
State Bank of Vietnam issued Directive No. 03/CT-NHNN (2015) on promoting green
credit growth and managing environmental and social risks in credit granting activities;

The Governor of the State Bank of Vietnam issued Decision No. 1604/QD-NHNN
dated August 7, 2018 on approving the Green Banking Development Project in Vietnam
to orient credit institutions to develop green banking activities towards environmental
protection, combating climate change, contributing to promoting green growth and
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sustainable development . The State Bank of Vietnam has also coordinated with
international organizations (IFC) to issue a Handbook on environmental and social risk
assessment for 15 economic sectors in credit granting activities.

At the 13th National Congress, our Party continued to affirm: “Sustainable
development has become an overarching trend in the world; digital economy, circular
economy, green growth are development models chosen by many countries”. On that
basis, the 10-year Socio-Economic Development Strategy 2021 - 2030 has set out the
following tasks: Proactively monitor and effectively respond to climate change; develop
a green and low-waste economy, reduce greenhouse gas emissions, and low carbon;

encourage the development of a circular economic model to comprehensively and
effectively use the output of the production process; Enhance the resilience and
adaptability to climate change of the infrastructure system and the economy, implement
smart solutions for adaptation in agriculture, fisheries and forest development; Minimize
risks caused by climate change.
The National Strategy on Green Growth for the 2021 - 2030 period, with a vision
to 2050, was issued in Decision No. 1658/QD-TTg dated October 1, 2021, followed by
Decision No. 882/QD-TTg dated July 22, 2022 approving the National Action Plan on

Green Growth for the 2021 - 2030 period. The general orientation of the Strategy is:
green growth contributes to promoting economic restructuring associated with growth
model innovation, aiming to achieve economic prosperity, environmental sustainability
and social equity; towards a green, carbon-neutral economy and contributing to the goal
of limiting global temperature rise. Green growth is people-centered, and must

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