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COMPLETING THE LEGAL FRAMEWORK ON GREEN

FINANCE, TOWARDS SUSTAINABLE DEVELOPMENT AND GREEN
ECONOMIC GROWTH IN VIETNAM

35
Le Thi Ngoc , Nguyen Thi Thu Huong 36

Abstract: In the context of the world's environment being seriously affected by economic
activities, causing natural disasters, many countries including Vietnam are transforming their
economies from "brown" to "green", towards the goal of sustainable development, green economic
growth, to balance economic, environmental and social goals. Around the world, green finance is
gradually becoming popular and is considered one of the solutions for countries to achieve sustainable
development goals. However, Vietnam's green financial system is still quite young and has not really
received attention from state agencies, businesses, and people; The reason is that Vietnam's legal
framework on green finance is not really complete and has not created trust for people and businesses.
Besides, green economic growth is being considered an inevitable trend on the path towards sustainable
development of countries around the world. Vietnam is predicted to be one of the countries most heavily
affected by climate change. To proactively deal with climate change, in 2021, the Government continues
to issue the "National Strategy on green growth for the period 2021-2030, vision to 2050". Accordingly,
one of the important goals is to transform the growth model according to the trend of greening economic
sectors for sustainable development; build and complete the green finance policy framework to develop
the green capital market and green financial products. This research article will analyze and propose
solutions and recommendations to improve the legal framework on green finance, aiming for sustainable
development and green economic growth in Vietnam in the near future.
Keywords: Green finance, green economic growth, sustainable economic development.

1. Question
Green finance, a capital channel and resource regulation for a green economy,
towards sustainable development, has gradually become an important issue in the

policies of many countries, including Vietnam, in order to implement commitments in
the international arena as well as sustainably develop the country, especially in the
context of the global environment being seriously affected by the negative impacts of
the traditional economy, capital only aims at economic profit without calculating and
considering environmental risk factors. Up to now, green finance is still a relatively
new issue with the awareness of many countries around the world, including Vietnam,

when in fact, the legal framework for green finance began to be newly built in 2014
when the Prime Minister approved the national action plan on green growth for the
period 2014-2020 in Decision No. 403/QD-TTg dated March 20, 2014, followed by
Decision No. 882/QD-TTg approving the National Action Plan on green growth for
the period 2021 - 2030. On the basis of the Government's orientation and the National
Strategy on green growth for the period 2021-2030, vision to 2050 issued Decision
No. 1393/QD-TTg dated September 25, 2012, and the system of legal documents and

policies related to green growth and greenhouse emission solutions are widely

35 Vietnam State Treasury, Email: ngoclt@vst.gov.vn
36 Hanoi Open University
71