Page 342 - Ebook HTKH 2024

credit implementation process in Vietnam in recent times. Implementing green credit
has become an inevitable trend in the activities of Vietnamese commercial banks in the

upcoming period. This has an increasingly strong impact on the operational efficiency
of these commercial banks. Green credit will not only affect the profitability of
commercial banks but also impact their credit risk and risk management. Therefore,
evaluating and determining the impact of green credit on the operational efficiency of
commercial banks needs to be carried out.
BIDV is one of the four major state-owned commercial joint-stock banks in
Vietnam. With a 65-year history of construction and development, the Joint Stock
Commercial Bank for Investment and Development of Vietnam (BIDV) has now

become the commercial bank with the largest total assets in Vietnam (over 85 billion
USD as of June 30, 2022). BIDV's credit balance and capital mobilization reached
63.7 billion USD and 60.4 billion USD, respectively. BIDV has 1,084 network points,
including 189 branches, 895 transaction offices, and a large customer base of nearly 15
million customers. Recognizing financial resources from banks as leverage to promote
the transition towards a green, circular economy, BIDV has seriously and appropriately

implemented tasks and solutions related to green credit and green banking. However,
green credit and green banking are new fields in Vietnam, and during implementation,
BIDV faces many difficulties and challenges affecting the bank's operational efficiency.
Based on the above analysis, this study evaluates the "Impact of green credit on the
operational efficiency of Joint Stock Commercial Banks for Investment and
Development of Vietnam (BIDV)" which has great practical significance.
2. Overview of the impact of green credit on commercial banks

Aizawa and Yang (2010) conducted a study on Green Credit, Green Stimulus,
Green Revolution? China’s Mobilization of Banks for Environmental Cleanup. The
authors examined China's green policies (including green taxes, green production, and
green policies related to financial aspects such as green credit, insurance, and securities
policies). Their research emphasized the importance of green credit in addressing
China's environmental challenges. Additionally, they pointed out that green credit has

the potential to withstand significant economic fluctuations in China following the
global financial crisis. As a result, green credit continues to be one of the policies China
employs to address issues related to the environmental and social behaviors of domestic
enterprises abroad.
Xiaoling Song, Xin Deng, and Ruixue Wu (2019) conducted a comparative study
on the impact of green credit on the profitability of commercial banks in China and other
countries. The authors focused on 12 domestically listed commercial banks in China and
7 international commercial banks, utilizing the Generalized Method of Moments

(GMM) model to evaluate the differences in profitability between these banks. The
authors found that the green credit ratio of Chinese commercial banks has an inverse
relationship with their profitability.
Yin and colleagues (2020) conducted a study on the components of green credit
to evaluate their impact on the performance of Chinese banks. The authors identified

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