Many businesses in the energy industry are receiving green capital and green finance from credit institutions and investment funds - Photo: NGOC HIEN
Experts made the above comments at the Green Finance Forum 2024 with the theme "Strongly initiating and increasing green capital flows to promote sustainable economic growth" organized by Vietnam Financial Times on the afternoon of July 22.
Green finance debt picture in Vietnam and globally
Dr. Can Van Luc, member of the National Financial and Monetary Policy Advisory Council, said that as of March 31, 2024, outstanding green credit in Vietnam reached nearly VND 637,000 billion, accounting for about 4.5% of total outstanding debt in the entire economy.
Regarding the green bond market, Mr. Luc said that in the period 2016-2020, Vietnam had a total of 4 green bond issuances with a value of 284 million USD.
However, in the 2019-2023 period, Vietnam issued about 1.16 billion USD in green bonds.
Regarding the world market, Mr. Luc said that the total outstanding debt of the global market is estimated at 4.16 trillion USD, the total value of sustainable bonds issued in 2023 will reach 939 billion USD.
According to Mr. Luc, this is a large space for Vietnamese enterprises to access green capital flows of billions of USD.
Need to improve legal framework to attract green finance
Commenting on opportunities for green finance in Vietnam, Mr. Luc said that green finance is an inevitable trend and the legal corridor for credit, stocks, green bonds, and green investment funds is gradually being completed.
Meanwhile, Vietnam's green growth orientation and strategy require large capital sources from credit, green securities and COP26 commitments require Vietnam to need large capital sources for energy conversion, carbon reduction, waste management...
To attract green finance, Mr. Luc said that it is necessary to soon build and complete legal corridors. Credit institutions need to build a dedicated appraisal process for green credit, with products and services suitable for different fields.
Mr. Vu Chi Dung, Director of the Department of International Cooperation (State Securities Commission), said that the challenge of developing the green capital market in Vietnam is that the legal framework is still being completed, businesses have not grasped the long-term benefits of sustainable development and limited knowledge about green finance.
At the same time, policy mechanisms to encourage businesses to issue and investors in green financial products are still limited, lacking the active participation of independent assessment service providers.
Mr. Dung pointed out that the solutions to promote the green capital market in Vietnam are to complete the legal framework related to the green capital market, complete the policy framework to support the green capital market to facilitate issuers, attract the attention of domestic and foreign investors...
Raising awareness of sustainable development
Ms. Tran Anh Dao, Deputy General Director in charge of the Executive Board ( Ho Chi Minh City Stock Exchange), said that to achieve the goal of carbon neutrality, a large capital demand is needed and the financial market is an important capital mobilization channel.
To mobilize green finance, Ms. Dao recommends that businesses need to raise awareness of ESG (environmental, social and governance) and sustainable development.
At the same time, businesses need to strictly comply with environmental regulations such as greenhouse gas inventories and emission reduction.
Source: https://tuoitre.vn/viet-nam-can-hoan-thien-khung-phap-ly-de-thu-hut-tai-chinh-xanh-20240722185942816.htm
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