View of a green project. Many commercial banks have recently had incentive credit programmes for green enterprises and projects. — VNA/VNS Photo

Many banks have recently poured thousands of billions of Vietnamese đồng into green projects.

One example, BIDV has launched a credit package of up to VNĐ10 trillion for enterprises to invest in new green projects, to expand such kinds of projects or renovate existing projects into green ones.

By participating in the package, enterprises can access preferential loan interest rates, receive quick and timely disbursement, and get consulting support from a team of competent experts. The package will last until December 31, 2025.

Previously, BIDV also launched a green credit package of VNĐ4.2 trillion specifically for textile and garment enterprises to participate in the green transition process.

TPBank recently announced a credit package of up to VNĐ5 trillion exclusively for enterprises with green plans and projects. Notably, the bank applies a zero percent interest rate in the first three months for renewable and clean energy projects, transportation, agriculture, sustainable water and waste management, and green construction and real estate.

TPBank implements this policy to fulfill its commitment to environmental risk management and its role in financing the transition to a sustainable and low-carbon economy.

At VietinBank, VNĐ5 trillion is also allocated to a green finance programme named Green UP to provide capital for projects and plans that benefit the community and society.

Meanwhile, MSB has recently implemented a green credit package of VNĐ3 trillion with competitive interest rates to finance business capital needs and accompany enterprises in sustainable growth.

Previously, ACB also launched a VNĐ2 trillion green and social credit package with many incentives for enterprises with production and business plans that benefit the environment and society.

In addition to the above credit packages, many other commercial banks, such as Agribank, MBBank, HDBank, and Nam A Bank, have incentive credit programmes for green enterprises and projects.

According to the State Bank of Vietnam (SBV), the green outstanding loans in the banking system achieved an average growth rate of more than 22 per cent per year in the 2017-23 period. As of the end of March 2024, 47 credit institutions reported a total green outstanding loan of more than VNĐ636.96 trillion, accounting for about 4.5 per cent of the total outstanding loan of the entire economy.

The SBV recently issued Decision No 1663/QĐ-NHNN, which aims to make it easier to access green capital for green projects. Under the decision, the SBV requires all credit institutions to participate.

According to the Deputy Director of the SBV’s HCM City branch, Nguyễn Đức Lệnh, the requirement to develop green banking and green credit is not only the task of commercial banks, but also the task of all credit institutions, including non-bank credit institutions including finance companies, financial leasing companies and people's credit funds. This helps to enhance the responsibility and initiative of the entire credit institution system in developing green credit. — VNS