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| SeABank simultaneously adopts emission-management practices, optimises energy use, accelerates digital transformation and promotes green habits within the organisation. (Photo: nhandan.vn) |
Hanoi (VNA) – Vietnamese banks are entering a pivotal stage in their green transition, as requirements on sustainable development, emission reduction and ESG practices are increasingly becoming standard norms in financial and banking operations.
According to the State Bank of Vietnam (SBV), by the end of the third quarter, outstanding green credit reached approximately 742.8 trillion VND (28.17 billion USD), up 5.5% compared to the second quarter and 9.3% from the end of 2024. Green credit has continued to account for around 4.3-4.4% of total outstanding loans in the economy. While the share remains modest relative to total credit, its growth reflects the strong rise in capital demand for renewable energy, circular agriculture and clean production projects.
Along with the shift in capital flows, credit institutions are paying greater attention to monitoring environmental and social impacts throughout their lending activities. By the end of the third quarter, loans subject to ESG (Environmental, Social, and Governance) risk assessment reached 3.84 quadrillion VND, equivalent to around 1.38 million loan accounts, an increase of 6% compared to the end of 2024.
SBV Deputy Governor Pham Thanh Ha noted that this transition demonstrates the improved awareness of credit institutions regarding environmental and social risks and the need for sustainable development. However, stronger mechanisms are needed to further stimulate the expansion of capital.
The SBV has completed the policy framework for green banking through Decision No. 1663/QD-NHNN issued in last year, which focuses on environmental and social risk management and promoting the adoption of international emission-measurement standards. This serves as a foundation for commercial banks to develop green credit rating systems and expand eligible project portfolios.
Several banks have taken the lead in issuing green bonds and building low-emission credit portfolios. BIDV successfully issued more than 104 million USD in internationally certified green bonds. Vietcombank launched a 2 trillion VND green bond issuance at the end of 2024, and MB has set a target of becoming a carbon-neutral bank by 2030.
Among the banks actively implementing green transition, SeABank stands out as a typical example, simultaneously adopting emission-management practices, optimising energy use, accelerating digital transformation and promoting green habits within the organisation. Thanks to its comprehensive digitalisation, paper consumption at its headquarters fell by 1.45% in 2024, while energy use and emissions were kept stable despite continuous expansion in scale and staff, the bank’s representative said.
Experts, however, pointed out several major challenges, including the lack of a unified green taxonomy; high environmental and social risks that make banks more cautious; and appraisal costs for green projects that remain higher than expected. In addition, the lack of consistency across institutions, standards, and capacity remains one of the barriers that make it difficult for Vietnamese banks to access international green financing.
According to Associate Prof. Dr. Nguyen Huu Huan of the University of Economics Ho Chi Minh City, banks must also shift their approach. Green credit should not only be about lending to projects with low environmental impacts, but should become a core strategy in their business models, aligned with the national goal of achieving net-zero emissions, he said./.
