Companies must embrace green finance initiatives

How can businesses better understand and engage with Vietnam’s emerging carbon credit market?

Under the Paris Agreement, carbon credits are considered a national asset. Developed and developing countries can collaborate to reduce emissions through carbon credit trading, where high-emission nations partner with lower-emission counterparts to build a market.

Vietnam has significant potential in this area. Over the past decade, the concept of carbon credits has gained attention, but the legal framework for a robust carbon market remains incomplete. Encouragingly, under the direction of the prime minister, ministries are collaborating to establish a comprehensive carbon market. This market is expected to officially launch in 2028, enabling Vietnam to integrate into the international carbon credit market.

The aim is to harness Vietnam’s resources, nature, labour, and governance to reduce emissions and transform carbon credits into a valuable economic asset that contributes meaningfully to the economy.

Vu Minh Tien, vice chairman of VIAD Group

How can businesses access green finance for digital transformation, dual transition, and participation in the carbon market?

Securing funding for carbon credits and green initiatives remains a long-term challenge. Several non-governmental organisations, international funds, and banks already provide financial packages for Vietnamese businesses. However, the lack of clear legal provisions to define and evaluate such projects creates confusion for firms and banks.

For instance, some companies claim their projects are green, but banks or credit institutions dispute this classification due to the absence of unified standards. There is an urgent need for a consistent regulatory framework that establishes criteria for assessing green projects. This would help banks and businesses align their processes.

To address these issues, some financial institutions in Vietnam have adopted international practices. For example, SeABank follows standards similar to Indonesia’s for green bonds, while BIDV has introduced green deposit schemes. While input mechanisms exist, the output requires further state intervention to ensure timely implementation. Policymakers must accelerate new regulations to enable faster access to green financing for investors.

Real estate and emerging sectors like e-commerce face unique challenges. How can they align with green finance goals?

Real estate continues to draw in significant investment in Vietnam, but the challenge lies in developing truly green real estate. Although the concept emerged in Vietnam 20 years ago, there are only about 10 projects classified as green real estate today.

Green real estate must integrate sustainable elements such as transportation, infrastructure, renewable energy, and waste reduction. To be certified as green, all aspects of design, implementation, and construction must meet these standards. This requires long-term vision from investors to recognise the benefits of green real estate, which include higher value propositions and alignment with sustainable development goals.

The government has provided instructions for green planning, and two-thirds of localities have established their own plans. Enterprises need to align projects with these plans and incorporate renewables, carbon credits, and emission reduction measures. Green real estate should go beyond physical structures to deliver long-term value through sustainable construction, effective resource management, and reduced environmental impact.

E-commerce, on the other hand, offers a different pathway. Over the next 10-15 years, e-commerce will play a crucial role in supply chain optimisation, enabling businesses to cut carbon emissions and comply with international standards. By adopting green practices in packaging, logistics, and distribution, e-commerce can help businesses penetrate key markets like the EU and the US, avoiding tariff and technical barriers while delivering green products to consumers.

Non-traditional e-commerce is particularly promising as it adheres to stringent green standards in developed countries. For smaller enterprises, it provides an efficient distribution channel to expand beyond local markets. With the rise of trade tensions and protectionist policies, such as those seen in recent years, Vietnam must adapt quickly. E-commerce presents a critical solution to overcome barriers, access global markets, and ensure compliance with evolving green requirements.

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