Page 138 - Ebook HTKH 2024

- Regarding the legal framework, there are currently no guidelines for the national
green classification list and criteria for determining green projects suitable for Vietnam's

economic sectors. The green classification list is the basis for the State Bank to assess
the effectiveness of policies and solutions in the credit policy contributing to the
implementation of the national green growth target. This is also the basis for credit
institutions to select, appraise, evaluate and monitor when granting green credit. At the
same time, the green sector still lacks a legal framework, assessment criteria, and tools
to measure environmental impacts to support the development of policies and products
for green credit development.
- Investing in green industries/fields, especially renewable energy, energy saving

and efficiency, green buildings, often requires large capital costs, long payback periods,
while lending capital of credit institutions is often short-term mobilized capital, credit
institutions face difficulties in balancing capital, ensuring compliance with regulations
and operational safety standards. On the other hand, accessing long-term, preferential
capital sources, especially mobilizing international resources for green credit of
commercial banks faces many difficulties due to the lack of legal basis for green banking

and green credit activities.
- The capital demand for implementing the Green Growth Strategy is very large,
however, the green capital market is still limited, the carbon credit market and green
bonds have not developed or have not been implemented, causing long-term capital
pressure on the banking system.
- The support mechanisms and policies for banks are only applied in the
agricultural and forestry sector, while in other green sectors they are at the general

encouragement level. At the same time, there is no recognition mechanism in the
evaluation and ranking process for credit institutions with good achievements in green
credit activities as a motivation for credit institutions to promote green credit.
- In-depth training courses in the field of green growth, green credit and green
banking models are still in the process of being built and implemented individually, not
long-term, systematic and have not fully reached the participants in the economy.

In order to deal with the above difficulties and obstacles, the author would like to
make some proposals and recommendations to contribute to promoting the development
of green credit in Vietnam in the coming time as follows:
Firstly, the Ministries and Branches need to review and advise the Government
and the Prime Minister to:
- Complete the legal corridor: have guidelines on the Green List and criteria for
determining green projects suitable for Vietnam's economic sub-sectors as a basis for
credit institutions to have a basis for appraisal, assessment and supervision when

implementing green credit; Research with general guidelines on ESG to help businesses
have a basis for green transformation.
- Develop a roadmap for implementing policy mechanisms to support green
industries (taxes, fees, capital, technology, market, planning, development strategy,

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