Page 366 - Ebook HTKH 2024

The importance of this study lies in its potential to uncover critical insights that
can help bridge the gap between current practices and the desired state of sustainable

development in Vietnam's real estate industry. Through a comprehensive analysis of
both quantitative and qualitative data, this research seeks to provide a detailed
understanding of how various factors interact to affect green finance adoption. The
findings are expected to provide valuable insights for policymakers, financial
institutions, and real estate companies to effectively integrate green finance into their
operations. By addressing the identified barriers and leveraging the drivers, stakeholders
can develop more targeted and effective strategies to promote the widespread adoption
of green finance, ultimately contributing to a more sustainable and environmentally-

friendly real estate sector in Vietnam.
2. Current state and challenges of green finance in Vietnam's construction
sector
The current state of green finance in construction companies in Vietnam is
gradually improving, driven by supportive policies, advanced green technologies, and
various financial resources. The Vietnamese government has implemented several

policies, such as the National Green Growth Strategy and the Green Credit Program, to
encourage sustainable development in the construction sector. These policies aim to
reduce greenhouse gas emissions, promote energy efficiency, and support the transition
to a green economy. Large enterprises, like VinGroup and Coteccons, are leading the
way by incorporating green technologies, including green concrete, non-fired bricks,
solar energy systems, and efficient water management solutions. These technologies not
only help in reducing the environmental footprint of construction activities but also

enhance the long-term sustainability and resilience of buildings.
Financial resources are becoming more accessible, with support from domestic
banks like the Vietnam Development Bank (VDB), international organizations such as
the World Bank and Asian Development Bank (ADB), and private investment funds
dedicated to green projects. For instance, the VDB has launched several green credit
lines that offer preferential interest rates for projects meeting specific environmental

criteria. Similarly, the ADB has provided significant funding for green infrastructure
projects, helping to bridge the financing gap for sustainable construction initiatives.
Moreover, private investment funds are increasingly targeting green projects,
recognizing the potential for long-term returns and the growing demand for sustainable
solutions.
However, challenges remain, particularly for small and medium-sized enterprises
(SMEs), which face high initial investment costs, a lack of expertise, and complex
access to green financing. SMEs often struggle to meet the stringent requirements for

green finance, such as detailed sustainability reports and advanced technical standards.
Additionally, the high upfront costs associated with green technologies, such as solar
panels and energy-efficient materials, can be prohibitive for smaller companies. The
lack of expertise in implementing and managing green projects further complicates the

358