VN plans green loan boost for eco-friendly projects

VN plans green loan boost for eco-friendly projects

A fixed 2 per cent annual interest rate subsidy is proposed for the private enterprises, business households and individuals on loans for green, circular economy and environmental – social – governance (ESG) projects, accroding a a draft decree by the State Bank of Việt Nam.

Green credit has expanded steadily with outstanding loans reaching VNĐ 730 trillion (US431 billion) as of the end of June, up 7.35 per cent from the end of 2024. — VNA/VNS Photo Trần Việt

Going green just got easier. A fixed 2 per cent annual interest rate subsidy is being proposed for private enterprises, business households and individuals taking out loans for green, circular economy and environmental-social-governance (ESG) projects, according to a draft decree by the State Bank of Việt Nam.

The decree, currently under review, is aimed at reducing capital costs, boosting cash flow and accelerating the country’s green transition towards the net-zero target by 2050.

Eligible borrowers include private enterprises, households and individuals undertaking projects verified as green, circular or compliant with ESG standards.

The Ministry of Agriculture and Environment will be responsible for certifying projects and publishing approved lists on its e-portal.

State Bank statistics show that green credit has expanded steadily, with outstanding loans reaching VNĐ 730 trillion (US$31 billion) as of the end of June, up 7.35 per cent from the end of 2024 and accounting for 4.3 per cent of total outstanding loans in the economy. Green credit growth averaged 21.2 per cent in the 2017–24 period, outpacing overall credit growth. 

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