What's Happening?
Despite abundant green capital flows, Vietnam faces challenges in meeting international standards for green projects. The Vietnam International Finance Centre (VIFC-HCMC) is working to bridge the gap between capital needs and access to international funding
by building a 'one-stop shop' model for green finance. This model supports businesses in establishing standards, measuring emissions, and structuring finances according to international standards. The Green Rulebook, expected to be issued by the end of 2026, will create a reference framework for green finance in Vietnam.
Why It's Important?
Vietnam's need for green capital is significant, with an estimated requirement of $670-700 billion by 2050. The VIFC's efforts to standardize projects and improve transparency are crucial for attracting international investment. By supporting businesses in meeting international standards, the initiative aims to enhance investor confidence and facilitate the disbursement of green capital. The development of long-term capital raising tools, such as project bonds, will further support the transformation of viable projects into investable financial products.
