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promote green credit development to implement the Party and State's policies and
strategies on green growth and sustainable development, the State Bank of Vietnam has

issued many mechanisms, policies, creating a legal basis for this activity, starting with
Directive No. 03/CT-NHNN dated March 24, 2015 on promoting green credit growth
and managing environmental and social risks in credit granting activities; followed by
Decision No. 1604/QD-NHNN dated August 7, 2018 on approving the Green Bank
Development Project in Vietnam. In addition, the State Bank issued Circular No.
27/2015/TT-NHNN dated December 15, 2015 of the Governor of the State Bank guiding
the implementation of loans for planting production forests, livestock development
according to the provisions of Decree No. 75/2015/ND-CP dated September 9, 2015 of

the Government on mechanisms and policies to protect and forest development,
associated with the policy of rapid, sustainable poverty reduction and support for ethnic
minorities in the period 2015-2020. It can be seen that the legal framework for green
credit activities is increasingly being improved, contributing to promoting green credit
development in Vietnam. According to a report by the State Bank, by the end of 2022,
credit institutions will lend to green projects in many industries including: textiles, clean

agriculture, renewable energy and environmental sanitation. By the end of 2022,
outstanding credit for green projects (12 green projects built and issued by the State
Bank since 2015) will reach nearly VND 500,000 billion (accounting for about 4.2% of
the total outstanding debt of the economy), focusing on areas such as renewable energy
and clean energy (accounting for the highest proportion of 47%), followed by green
agriculture (accounting for over 30%). Credit institutions actively evaluate
environmental and social risks in credit granting activities with outstanding loans

reaching more than 2.2 million billion VND with more than 1.1 million loans.
Green bonds, this term officially appeared for the first time in Decree No.
95/2018/ND-CP dated June 30, 2018 of the Government regulating issuance,
registration, depository, listing and trading of Government debt instruments on the stock
market, accordingly, green bonds are a type of Government bond issued to invest in
projects related to environmental protection activities according to the provisions of the

Law on Environmental Protection (green projects) and is in the list of projects allocated
public investment capital according to the provisions of the Law on Public Investment
and the Law on State Budget. Next, to further improve the legal framework for green
bonds, the Government issued Decree No. 153/2020/ND-CP dated December 31, 2020
regulating offering and trading private corporate bonds in the domestic market and
offering corporate bonds to the international market, Decree No. 65/2022/ND-CP dated
September 16, 2022 Amending and supplementing a number of articles of Decree No.
153/2020/ND-CP and Decree No. 08/2022/ND-CP dated January 10, 2022 of the

Government detailing a number of articles of the Law on Environmental Protection.
Accordingly, the subjects of green bond issuance are expanded to local governments
and businesses (Article 157 of Decree No. 08/2022/ND-CP), not only limited to the
Government according to the Law on

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