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THE VIETNAMESE GOVERNMENT’S NEED TO ENCOURAGE THE

GREEN BOND MARKET DEVELOPMENT IN ACCORDANCE WITH
THE REQUIREMENTS OF DEEP INTERNATIONAL INTEGRATION

179
Nguyen Thanh Long 178 , Nguyen Tuan Anh

Abstract: Green bonds are financial instruments issued by businesses, the Government, and
financial institutions to mobilize investment capital for green projects, renewable economic projects,
circular economic projects, environmental treatment projects, and climate change response projects.
According to the World Bank's calculations, to develop a green economy in the period of 2022 - 2050,
Vietnam needs up to 436 billion USD in capital. According to the calculations of the Ministry of
Planning and Investment, to develop green and move towards the goal of zero net emissions by 2050,
Vietnam needs to mobilize about 144 billion USD. According to global experience, an effective tool to
mobilize capital is to issue green bonds. The article uses qualitative research methods to analyze the
current status of the development of the Vietnamese corporate bond market in recent years, providing
some assessments related to green bonds and recommending related solutions.
Keywords: Green bonds, corporate bonds, sustainable development

1. Introduction
In recent years, the Vietnamese corporate bond market (TPDN) issued individually
has grown strongly in terms of issuance scale. However, the scale and value of bonds
on the market are still much lower than other countries in the region in terms of GDP.
The value of bonds issued annually compared to other capital mobilization channels on
the market is also relatively low. Product quality has not met market demand, the risks

are high, and the corporate bond market's legal system is still incomplete. Green bonds
account for a low proportion and tend to decline sharply. To sustainably develop the
individual corporate bond market in general and green bonds in particular in the coming
time, it is necessary to implement specific solutions comprehensively. The article
focuses on urgent issues that are being raised in practice.
2. Current status of corporate bond market development

2.1. Regarding the scale of the corporate bond market
The Vietnamese corporate bond market has witnessed significant growth from
2018 to 2023. This development reflects the increased demand for financial instruments
to raise capital and the increasing participation of domestic and foreign investors. 2019
marked a strong growth in the corporate bond market compared to the previous period.
The number of corporate bonds issued increased by more than 30% compared to 2018,
officially surpassing the number of government bonds and bringing the outstanding debt

equivalent to nearly 11% of GDP, with individual corporate bonds alone being more than
10% of GDP. 2021 is considered a boom year for corporate bonds. The total issuance
volume in the year reached VND 742.7 trillion, double that of government bonds and
the outstanding debt equivalent to 14.75% of GDP. In 2022,

178 Hanoi Open University, Email: ntlong.tt@moet.edu.vn
179 Hanoi Open University
388