Challenges and opportunities in green capital disbursement

DNHN - In the context of increasing emphasis on environmental protection, green finance has become a hot topic in Vietnam.

Unlocking the potential of green finance in vietnam

According to Ms. Nguyễn Thị Thu Hà from the University of Economics Ho Chi Minh City, not all enterprises are willing to commit to implementing Environmental, Social, and Governance (ESG) standards with banks. This has led to a fragmented landscape in the disbursement of green finance.

Ms. Hà noted that promoting green transformation requires diverse and flexible funding sources, especially to support small and medium enterprises (SMEs). Given the challenges these businesses face in accessing finance for eco-friendly projects, providing the necessary capital to shift toward sustainable and low-emission production is crucial. This not only helps enterprises grow but also contributes positively to environmental protection.

Besides supporting existing enterprises, green finance also aims to nurture climate-tech startups. These young companies need funding to develop new products and technologies that address urgent environmental issues. Investing in these startups can drive economic growth and generate innovative solutions to climate challenges.

Thus, the two main goals of green finance are not only to help businesses transition to sustainable production models but also to create opportunities for startups. This will contribute to forming a green economic ecosystem, where environmental protection and economic development go hand in hand, promoting sustainable social progress.

To achieve these objectives, Ms. Nguyễn Thị Thu Hà emphasized that funding must come from various sources, not just banks. Venture capital funds, institutional sponsors, angel investors, and Development Finance Institutions (DFIs) are all crucial players. Collaboration between public and private funds also plays a key role in mitigating risks and attracting investment for climate projects.

Meanwhile, Mr. Vũ Mạnh Hùng, Chairman of Hùng Nhơn Group, highlighted the trend of green transformation in agriculture, stating that building a green economic model requires not only partnerships with foreign counterparts but also a long-term vision spanning 10 to 20 years. Hùng Nhơn's ongoing projects have implemented advanced technology, from livestock farming to food processing, meeting international standards such as ISO and Global GAP.

With a goal of achieving $2 billion in revenue by 2030, Hùng Nhơn is leading the way in using clean energy and reducing CO2 emissions. He stressed that sustainable development not only brings economic benefits but also protects the environment for future generations.

Challenges and opportunities for enterprises and banks

To access green finance, businesses must clearly demonstrate their commitment to green transition. Mr. Trần Hoài Phương, Head of Corporate Client Division at HDBank, shared that the bank is actively seeking businesses with potential for sustainable growth. HDBank has secured half a billion USD in funding from foreign financial institutions to support green transitions.

However, Mr. Phương emphasized that not all companies labeled as "green" genuinely meet environmental and social standards. Therefore, banks must be cautious during the evaluation process, only considering companies committed to implementing ESG practices for green finance.

Mr. Lê Đăng Khoa, Head of Corporate Client Division at OCB, also stated that developing green credit is a long journey requiring cooperation from multiple stakeholders. Banks need clear policies from regulatory authorities to manage specific situations related to green assets. At the same time, businesses must understand that green transition is an inevitable trend and ensure transparency in their operations.

Prof. Dr. Trần Ngọc Thơ warned that current legislation does not address measures to safeguard against climate risks. Without specific regulations in the Law on the State Bank to ensure protection against climate-related "shocks," the banking sector will struggle to develop green credit robustly.

Dr. Trần Du Lịch added that only when green credit accounts for about 30-40% of total credit loans can the green economic transformation be considered successful. This will be a key indicator of the economy's green transition.

In conclusion, developing green finance in Vietnam faces many challenges but also offers substantial opportunities. Businesses need to proactively commit to ESG standards, while banks require flexible policies to provide support. The government also plays a crucial role in creating a favorable legal environment to promote green credit. Only through close cooperation between all stakeholders can the vision of a sustainable economy become a reality.

Nghe Nhan