The annual average growth of green credit in the 2017-2023 reached over 22%, heard a forum held on July 22 in Ho Chi Minh City to discuss measures to promote green capital and sustainable development for businesses.

Currently, 47 credit institutions are providing green capital with a total outstanding green credit of nearly VND637 trillion ($25 billion) as of March 31, 2024, accounting for 4.5% of the total outstanding debt of the entire economy.

Participants at the event noted that green credit has become a key factor of the global financial system. Green credit will not only help to deal with environmental challenges but also contribute to economic growth.

The World Bank estimated that Vietnam will need an estimated $368 billion in 2022-2040 for the resilient and decarbonizing pathways and achieve the target of net zero carbon emissions by 2050.

The Ministry of Planning and Investment estimated that Vietnam needs to mobilize additional $144 billion in 2021-2050 to achieve the target of net zero carbon emissions.

The Ministry of Finance is building a master plan on developing the carbon market in Vietnam. Under the plan, Vietnam will start piloting a carbon credit trading floor in 2025 and officially put it into operation from 2028.