Publication Details
Abstract
Green credit is paramount because they address environmental challenges, promote economic growth, and meet evolving societal expectations regarding sustainability. They not only contribute to enhancing our environmental conditions but also drive society towards sustainable development. This paper examines the evolution of the Vietnamese legal framework for green credit over the past decade, emphasizing the shifts towards environmental sustainability in Vietnam. These changes highlight the country’s commitment to international agreements and demonstrate the growing awareness of ecological concerns, particularly within the financial sector. Moreover, the paper scrutinizes the practices of Vietnamese commercial banks concerning green credit. It assesses their implementation, evaluating the alignment between policy and practice and their contribution to sustainable development goals. However, the paper also identifies several drawbacks in the legal framework and banking practices related to green credit. In response, this paper provides recommendations to enhance green credit in Vietnam. These suggestions aim to ensure the alignment of the Vietnamese legal framework with global best practices and strengthen the commitment of Vietnamese commercial banks to sustainability.