Green Credit in Vietnam: Policies and Practices

Introduction: To facilitate the effective operation of green credit, every nation should establish a framework of green credit policies. The banking system, particularly commercial banks, has implemented several regulations to encourage green credit and financial activities in general. The State Bank of Vietnam also emphasizes the development of green credit by utilizing management documents issued by the Government and the State Bank.Purpose: The chapter focuses on statistical analysis and policy recommendations for green credit implementation in Vietnam, employing practical implications to support the development of macro-management policies that promote sustainable development.Methodology: We use analysis methods, statistics, comparison, and synthesis of data on green credit at Vietnamese commercial banks to analyze the current situation.Findings: Challenges arise during the execution phase due to the need for more legal documentation about management concerning risk assessment, standards, and subjects bestowed with green credit.Practical implications: The government should build a solid legal framework with detailed guidance for all stakeholders relating to the green credit process. Commercial banks in Vietnam should develop various products and services related to green credit with attractive content to promote this kind of credit.