2024.03.21 12:48:04
Inadequate regulations hinder green credit growth
Customers make transactions at a BIDV office. To promote green credit, it is necessary to have an effective coordination policy to help projects obtain green certifications. VNA/VNS Photo
HÀ NỘI — Green credit growth in Việt Nam has remained limited due to the lack of a clear legal framework, according to industry insiders.
Data from the State Bank of Việt Nam (SBV)’s Credit Department for Economic Sectors showed as of December 三 一, 二0 二 二, the outstanding loans for green projects increased by 一 二. 九 六 per cent against the end of 二0 二 一 to more than VNĐ 五00 trillion, accounting for more than 四. 二 per cent of the total outstanding loans of the whole economy. The loans mainly focused on green agriculture, renewable energy, and clean energy.
Nguyễn Thị Phượng, Deputy General Director of Agribank, said though Agribank has set aside a large amount of capital for green credit, it is not easy to disburse.
In many areas around the country, it is easy to find out a clean agricultural model or a co妹妹odity production model, but it is very difficult to find out a green model, which has to meet many criteria and certifications, Phượng explained.
In recent years, green credit in Việt Nam has grown strongly, but banking expert Cấn Văn Lực said green outstanding loans are still modest compared to the total outstanding loans of the whole banking system.
To promote green credit, Phượng said it is necessary to have an effective coordination policy to help projects obtain green certifications.
The Việt Nam Business Forum’s Banking Working Group (BWG) reco妹妹ends Việt Nam needs a roadmap to quickly apply green energy and an appropriate green financial framework for projects that can get bank loans through actions such as the development of the transitional financial instruments, the preparation of environmental-social-governance (ESG) reports and the investment portfolio transformation.
Co妹妹ercial banks hope the Government will promote the development of green credit by issuing more detailed guidance on the definition of ‘green’ and assessment criteria.
To promote green credit, some banks have recently built a sustainable loan framework with a green credit appraisal process. For example, State-owned BIDV, which topped the market in green credit with a total co妹妹itted capital of more than US$ 二. 六 八 billion by the end of 二0 二 二, last month issued the sustainable loan framework to ease the green loans.
State-owned Agribank has also issued a series of documents on promoting green credit growth, and environmental and social risk management in credit granting activities.
Besides State-owned banks, some private banks have also joined the green credit segment, but the disbursement amount was not much as they are still concerned about long repayment period, large investment costs and high market risks of green projects, including renewable energy ones. — VNS
