Green credit balance accounts for about 4.2% of total: Central bank

Vietnam’s green credit balance accounted for about 4.2% of the economy’s total credit balance by June 30, 2023, according to the State Bank of Vietnam (SBV).

Green credit balance accounts for about 4.2% of total: Central bank hinh anh 1

Participants in the workshop on green credit. (Photo: VNA)

Vietnam’s green credit balance accounted for about 4.2% of the economy’s total credit balance by June 30, 2023, according to the State Bank of Vietnam (SBV).

In the 2017-2022 period, the yearly growth rate of green credit reached more than 23%.

Speaking at a workshop on green credit held on September 9, SBV Deputy Governor Dao Minh Tu said that Vietnam’s banking industry has been striving to implement the National Strategy on Green Growth for the 2021-2030 period with a vision to 2050.

It has approved the project on green bank development, promulgated an action programme to implement the national green growth strategy, circular guiding credit institutions on managing environmental risks in credit granting activities, and integrated the goal of increasing the proportion of green credit balance in the total credit balance.

Tu said that among the 12 areas that the SBV guides credit institutions to offer green credit, outstanding loans focus mainly on renewable energy sectors/clean energy (45%), and green agriculture (31%). Credit institutions have enhanced the assessment of environmental and social risks in credit-granting activities.

According to Deputy Director General of the SBV Department of Credit for Economic Sectors Nguyen Xuan Bac, Vietnam is considered one of the 38 developing markets with significant progress in promoting the financing industry towards sustainable development.

The country ranked high among Asian and global countries in policies related to national self-determined contributions (NDCs) - an important content of the Paris Agreement.

Bac said despite positive progress, green credit still faces difficulties, for example, a shortage of national regulations on criteria to identify green projects.

In addition, granting green credit requires in-depth technical environmental factors, which will make it difficult for credit officers to appraise and evaluate the effectiveness of the project and the customer's ability to repay debt.

He said it’s necessary to improve the legal framework and develop a roadmap to implement policy mechanisms to support green industries and attract investors to green projects.

Nguyen Thi Thu Ha, head of the Financial Institutions Department of Vietnam Bank for Agriculture and Rural Development (Agribank), said the bank has been paying much attention to developing green credit.

Agribank has nearly 70% of the outstanding loans in the field of rural agriculture, so developing green credit is very important to it, she said./.

Source: VNA
en.vietnamplus.vn

Related News

Green credit needs to be unblocked

Green credit needs to be unblocked

VCN - The demand for green credit in the economy is very high, but there are still many "gaps" that need to be filled for banks to be more confident in providing green financing to businesses and for businesses to have more opportunities to access this capital.
Banks join in promoting green credit

Banks join in promoting green credit

Commercial banks in Vietnam have been actively offering loans for green projects and expanding green credit through mobilising capital from international credit institutions.
Green credit provision strengthened in agriculture

Green credit provision strengthened in agriculture

The Ministry of Agriculture and Rural Development (MARD) is planning to coordinate with the State Bank of Vietnam in completing policies on preferential credit to support agricultural projects following value chains, applying high technologies and specialising in clean agriculture and production forest planting.
Capital market suffers from difficulties, businesses expect to access new capital mobilization channels

Capital market suffers from difficulties, businesses expect to access new capital mobilization channels

VCN – In 2023, enterprises that increased their leverage continue to be under pressure from the maturity of corporate bonds. In the context that liquidity faces difficulties, international capital channels, green credit, green bonds will be viable options for businesses.

Latest News

M&A activities show signs of recovery

M&A activities show signs of recovery

Mergers and acquisitions (M&A) activities in Vietnam have been showing signs of recovery in recent months as several large companies announced finished deals, which may create a ripple effect in the M&A market.
Fiscal policy needs to return to normal state in new period

Fiscal policy needs to return to normal state in new period

VCN - To recover the economy during and after the Covid-19 pandemic, fiscal policy has been flexibly and promptly managed, becoming a solid foundation to help businesses and the economy gradually overcome difficulties. After nearly 5 years, although there are still difficulties, the economy is gradually returning to a high growth trajectory. In that context, it is necessary to let fiscal policy return to normal state.
Ensuring national public debt safety in 2024

Ensuring national public debt safety in 2024

VCN - Since the beginning of the year, public debt management has been conducted proactively and effectively, meeting the need of raising capital for development investment. At the same time, debt indicators by the end of 2024 are guaranteed within the ceiling and safety threshold approved by the National Assembly, ensuring national financial security, increasing proactive response to risks arising from external and internal causes of the economy.
Removing many bottlenecks in regular spending to purchase assets and equipment

Removing many bottlenecks in regular spending to purchase assets and equipment

VCN - Decree No. 138/2024/ND-CP, which has just been issued, is expected to contribute to resolving bottlenecks in allocating funds for purchasing assets and equipment; renovating, upgrading, expanding, and constructing new construction items in projects that have been invested in and constructed in the past.

More News

Continue to handle cross-ownership in banks

Continue to handle cross-ownership in banks

VCN - The situation of excess share ownership, cross-ownership between credit institutions (CIs), CIs and enterprises, although has decreased significantly compared to previous periods, is still complicated and requires continued inspection and control.
Striving for average CPI not to exceed 4%

Striving for average CPI not to exceed 4%

VCN - According to the report of the Ministry of Finance, there are still some factors that put pressure on price levels in the remaining months of 2024, so the Ministry has updated 2 scenarios of average inflation in 2024 increasing in the range of 3.7-3.92%.
Delegating the power to the government to waive, lower, or manage late tax penalties is suitable

Delegating the power to the government to waive, lower, or manage late tax penalties is suitable

VCN - Discussing in groups about the project "1 law amending 7 laws" in the financial sector according to the program of the 8th Session on October 29, 2024, National Assembly delegates proposed that the Government should be assigned to make specific regulations on decentralization, granting the right to exempt and reduce taxes, and handling penalties for late payment of taxes...
Removing difficulties in public investment disbursement

Removing difficulties in public investment disbursement

VCN - According to the report of the Investment Department (Ministry of Finance), the estimated disbursement from the beginning of the year to October 31, 2024 is VND 355,616.1 billion, reaching 47.43% of the 2024 plan, reaching 52.29% of the plan assigned by the Prime Minister.
State-owned commercial banking sector performs optimistic growth, but more capital in need

State-owned commercial banking sector performs optimistic growth, but more capital in need

VCN - According to the report sent to the National Assembly before the 8th Session of the Government on investment, management and use of state capital in enterprises nationwide in 2023, the business performance of the state-owned commercial banking sector achieved positive growth.
Stipulate implementation of centralized bilateral payments of the State Treasury at banks

Stipulate implementation of centralized bilateral payments of the State Treasury at banks

VCN - The Ministry of Finance (MOF) gathers feedback on the draft Circular regulating the management and use of accounts of the State Treasury opened at the State Bank of Vietnam (SBV) and commercial banks.
Rush to finalize draft decree on public asset restructuring

Rush to finalize draft decree on public asset restructuring

VCN - According to the Ministry of Finance, the draft Decree regulating the rearrangement and handling of public assets is being urgently completed by the Ministry of Finance to submit to the Government for promulgation.
Inspection report on gold trading activities being complied: SBV

Inspection report on gold trading activities being complied: SBV

The State Bank of Vietnam (SBV) has announced that inspections on compliance with legal policies in gold trading activities of credit institutions and gold trading businesses have been completed and an inspection report is being compiled.
Budget revenue in 2024 is estimated to exceed the estimate by 10.1%

Budget revenue in 2024 is estimated to exceed the estimate by 10.1%

VCN -The Government estimates that state budget revenue in 2024 will exceed VND 172.3 trillion, up 10.1% over the estimate, of which tax and fee revenue will reach 13.1% of GDP.
Read More

Your care

Latest Most read
M&A activities show signs of recovery

M&A activities show signs of recovery

Mergers and acquisitions (M&A) activities in Vietnam have been showing signs of recovery in recent months as several large companies announced finished deals, which may create a ripple effect in the M&A market.
Fiscal policy needs to return to normal state in new period

Fiscal policy needs to return to normal state in new period

VCN - To recover the economy during and after the Covid-19 pandemic, fiscal policy has been flexibly and promptly managed, becoming a solid foundation to help businesses and the economy gradually overcome difficulties. After nearly 5 years, although there
Ensuring national public debt safety in 2024

Ensuring national public debt safety in 2024

VCN - Since the beginning of the year, public debt management has been conducted proactively and effectively, meeting the need of raising capital for development investment. At the same time, debt indicators by the end of 2024 are guaranteed within the ce
Removing many bottlenecks in regular spending to purchase assets and equipment

Removing many bottlenecks in regular spending to purchase assets and equipment

Decree No. 138/2024/ND-CP, which has just been issued, is expected to contribute to resolving bottlenecks in allocating funds for purchasing assets and equipment
Continue to handle cross-ownership in banks

Continue to handle cross-ownership in banks

VCN - The situation of excess share ownership, cross-ownership between credit institutions (CIs), CIs and enterprises, although has decreased significantly compared to previous periods, is still complicated and requires continued inspection and control.
Mobile Version