Vietnamese businesses struggle to get green credit

Companies are still struggling to get “green” credit since they lack a green taxonomy and fail to understand policies and mechanisms, experts told the Global Climate Partnership Workshop in HCM City on May 13.
Vietnamese businesses struggle to get green credit
Applying for “green” credit remains challenging for Vietnamese enterprises due to a lack of green project taxonomy and misunderstanding of policies, experts told the Global Climate Partnership Workshop in HCM City on Monday. Photo baodautu.vn

Companies are still struggling to get “green” credit since they lack a green taxonomy and fail to understand policies and mechanisms, experts told the Global Climate Partnership Workshop in HCM City on Monday.

Green credit provides funding for manufacturing and business activities that have little or no impact on the environment, and green taxonomy is a classification system highlighting whether or not investment options are sustainable.

Since Việt Nam is committed to achieving Net Zero by 2050, it needs to invest around US$368 billion by 2040, Trịnh Thị Hương, deputy director of the Ministry of Planning and Investment’s Enterprise Development Agency, said.

Thus, in addition to public spending, investments by the private sector and foreign sources are direly needed, she said.

Her agency has been improving its policies and mechanisms to help enterprises become more sustainable and environmentally friendly, she said.

Bùi Quang Duy, global deputy head of FI investments, climate finance, at responsAbility Investments AG, said Việt Nam is among the promising markets for “green” investments, and the number of green projects invested by his company has been increasing consistently since 2018.

It is responsAbility’s second largest market, he added.

The ministry said to attract more green investments it has carried out programmes and initiatives to encourage companies to opt for sustainable development and green transition.

They include the Vietnam Environmental, Social, and Governance Initiative, a UNESCAP project on inclusive business in agriculture and food processing, and the “Leveraging Việt Nam’s Social Impact Business Ecosystem in Response to COVID-19” project.

If there are definitive standards for green projects, they would be able to solicit more investment, David Ambadar of the German Agency for International Cooperation said.

Besides green credit, the country needs to improve its green bond market and build a mechanism to issue these bonds to localities, he said.

Phạm Thị Ngọc Thủy, director of the Office of the Private Economic Development Research Board, said it is important to promptly promulgate a green taxonomy and update related parties on policies and mechanisms to help ease the problem.

Source: VNA
vietnamnews.vn

Related News

Latest News

Exports in 2024 expects to reach US$370 billion

Exports in 2024 expects to reach US$370 billion

VCN – Motivated by recent development, exports in 20204 may reach US$ 370 billion, the General Department of Vietnam Customs said.
Imports and exports achieve more than US$270 billion

Imports and exports achieve more than US$270 billion

VCN - By mid-May, the country's total import-export turnover reached US$270.82 billion, according to the latest statistics from the General Department of Vietnam Customs.
Coffee output in 2023-2024 crop forecast to fall 20 per cent

Coffee output in 2023-2024 crop forecast to fall 20 per cent

Việt Nam’s coffee output in the 2023–2024 crop year is estimated to decrease by 20 per cent compared to the previous crop year, to 1.47 million tonnes, the lowest in four years.
Pharmaceutical industry sees slowing growth momentum

Pharmaceutical industry sees slowing growth momentum

After record profits and strong growth in 2023, the industry’s momentum faced limitations in 2024 due to rising raw material costs and increased market competition.

More News

Agricultural and food businesses increased profits thanks to export recovery

Agricultural and food businesses increased profits thanks to export recovery

VCN - Many agricultural and food exporters have recorded positive business results thanks to the momentum from the recovery of major markets and solutions to enhance deep processing, helping to improve product value and business efficiency.
The auto industry does not shrink from many challenges

The auto industry does not shrink from many challenges

VCN - In the context of the import tax reduction roadmap being implemented when Vietnam participates in commitments in Free Trade Agreements, the pressure of competition on the Vietnamese automobile industry is also increasingly fierce. Therefore, in addition to tax and fee support, many breakthrough solutions and policies are needed to create a boost for the auto industry.
Traceability helps improve product value

Traceability helps improve product value

VCN - Traceability of origin has been and is a mandatory requirement for Vietnamese goods when exporting to several markets. The application of information technology and the use of QR codes is an effective solution in traceability, increasing value and promoting product consumption, especially agricultural products.
Vietnamese pepper prices see strong upward trend

Vietnamese pepper prices see strong upward trend

The Vietnam Pepper and Spice Association has expected pepper prices to continue rising every week.
E-commerce boosts exports of Vietnamese products

E-commerce boosts exports of Vietnamese products

Digital platforms have played a key role in helping Vietnamese firms take their high-quality products to the world, insiders have said.
Increasing the value of rice grains from the project of 1 million hectares of high quality rice

Increasing the value of rice grains from the project of 1 million hectares of high quality rice

VCN - The implementation of the project of 1 million hectares of high-quality rice will contribute to promoting the transition from traditional farming methods to synchronous mechanization, developing large-scale, stable and long-term concentrated raw material areas, ensuring sustainable and effective farming quality and minimizing environmental pollution. Vietnam is also the first country in the world to build a large-scale project on sustainable rice production and reduced emissions.
Hai Phong Port strengthen solutions to improve cargo handling capacity

Hai Phong Port strengthen solutions to improve cargo handling capacity

VCN - The flow of goods passing through Hai Phong port area has tended to improve recently.
Five trends in exporting through e-commerce

Five trends in exporting through e-commerce

VCN - On May 22, 2024, Amazon Global Selling announced the prominent cross-border e-commerce (CBEC) trends shaping Vietnam's online export economy. Concurrently, it launched phase two of the program "CBEC: The breakthrough era" in collaboration with the Vietnam e-Commerce and Digital Economy Agency (iDEA) under the Ministry of Industry and Trade.
Vietnamese firms urged to watch global trade policies

Vietnamese firms urged to watch global trade policies

Experts say Vietnamese firms should keep an eye on global trade moves by major economies to figure out how best to promote the consumption and export of products made in Việt Nam, in the context of a glut of cheap Chinese goods flooding the world market.
Read More

Your care

Latest Most read
Exports in 2024 expects to reach US$370 billion

Exports in 2024 expects to reach US$370 billion

VCN - However, as of May 15, exports still see positive growth.
Imports and exports achieve more than US$270 billion

Imports and exports achieve more than US$270 billion

By mid-May, the country's total import-export turnover reached US$270.82 billion, according to the latest statistics from the General Department of Vietnam Customs.
Coffee output in 2023-2024 crop forecast to fall 20 per cent

Coffee output in 2023-2024 crop forecast to fall 20 per cent

Việt Nam’s coffee output in the 2023–2024 crop year is estimated to decrease by 20 per cent compared to the previous crop year, to 1.47 million tonnes, the lowest in four years.
Pharmaceutical industry sees slowing growth momentum

Pharmaceutical industry sees slowing growth momentum

After record profits and strong growth in 2023, the industry’s momentum faced limitations in 2024 due to rising raw material costs and increased market competition.
Agricultural and food businesses increased profits thanks to export recovery

Agricultural and food businesses increased profits thanks to export recovery

VCN - According to data from the Ministry of Agriculture and Rural Development, agricultural, forestry and fishery export turnover in April reached 5.14 billion USD, an increase of 19.7% compared to April 2023.
Mobile Version