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Legal framework hinders green credit in Vietnam


Despite the increasing demand for green financing in Vietnam, the growth of green credit in the country has remained limited due to the lack of a clear legal framework. According to the Credit Department for Economic Sectors of the State Bank of Vietnam (SBV), outstanding loans for green projects had increased by 12.96% to over VND500tr (USD21bn) as of December 31, 2022, compared to the end of 2021. The loans mainly focused on green agriculture, renewable energy, and clean energy. However, Nguyen Thi Phuong, Deputy General Director of Agribank, highlighted the difficulty in disbursing green credit despite Agribank setting aside a large amount of capital for it. She explained that finding a green model that meets various criteria and certifications has been a significant challenge in many areas around the country.

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