The State Bank of Vietnam (SBV) has proposed a fixed annual interest rate subsidy of 2% for private enterprises, business households, and individuals borrowing to finance green, circular economy, and environmental-social-governance (ESG) projects, according to a draft decree, which is under review.

Eligible borrowers would include entities undertaking projects certified as green, circular, or ESG-compliant.

Under the draft decree of the Government, the Ministry of Agriculture and Environment will be tasked with verifying projects and publishing the approved lists on its online portal.

The proposed policy aims to reduce capital costs, support cash flow, and accelerate Vietnam’s green transition as the country works towards its net-zero emissions target by 2050.