Green Financing: Banks Lack Clarity, Businesses Struggle to Access Funds

Even banks are facing confusion due to the lack of clear guidelines on green criteria, leading to difficulties in financing environmentally friendly projects.

Lack of Clear Mechanisms

Speaking at the recent roundtable “Green Transition: From Pressure to Business Opportunity”, Mr. Hoàng Dương Tùng, Chairman of the Vietnam Clean Air Network (VCAP), stated that although the government has issued several policies to support businesses in the green transition — from the State Bank of Vietnam’s green credit regulations to resource and environmental management programs — the shift remains dominated by large corporations and foreign-invested enterprises. Meanwhile, most small and medium-sized enterprises (SMEs) continue to face significant challenges.

According to Mr. Tùng, one of the key reasons is the absence of a clear framework, leaving businesses unsure where to invest, which technologies to adopt, or where to obtain financing for the transition. At the same time, banks remain uncertain due to the lack of specific guidelines on green criteria, making it difficult for them to evaluate and provide funding for environmentally friendly projects.

He added that beyond financial constraints, many SMEs still do not fully understand what the green transition entails or how to implement it in practice. The lack of information and specialized training programs is slowing progress far more than expected.

Sharing the same view, Mr. Đinh Hồng Kỳ, Vice Chairman of the Ho Chi Minh City Business Association (HUBA), noted that despite the strong rise of the green-transition movement, numerous challenges remain. Around 90% of Vietnamese businesses are SMEs, yet most companies actively engaging in green transformation are large corporations. SMEs struggle across multiple fronts — finance, human resources, technology, and awareness.

One of the biggest barriers, according to Mr. Kỳ, is financing.
“Statistics show that around 65% of businesses struggle to access capital for green projects. Although financial support mechanisms exist, distributing these funds to the right businesses remains difficult. Human resources is also a concern — only about 12% of businesses in HCMC have staff with ESG expertise, creating major obstacles in the transition,” he said.

Mr. Nguyễn Văn Nguyện, Deputy Head of the General Department of the State Bank of Vietnam’s HCMC branch, explained that another major challenge is the misalignment between financing needs for renewable-energy projects and the structure of bank capital.

“Banks mainly mobilize short-term funds, while green projects require medium- and long-term financing. This creates tremendous pressure on the credit system,” he emphasized.

Standardization Needed to Access International Capital

According to Mr. Nguyện, demand for green capital is rising rapidly, but businesses must strengthen their capabilities and green their operations to meet international standards. To ease pressure on the banking system, the Ministry of Finance and the State Securities Commission are working to mobilize capital through the stock market and other financial channels. In addition, companies may seek foreign investment.

However, he stressed that to do so, businesses must improve their capacity, enhance financial transparency, and comply with strict standards required by global investors.

“The cooperation between banks, businesses, and regulatory agencies will be crucial in promoting green credit, green banking, and green finance — forming a solid foundation for Vietnam’s green transition. This will be essential for renewable-energy projects to access more sustainable capital sources,” Mr. Nguyện emphasized.

Mr. Tùng added that Vietnam needs to develop sector-specific green mechanisms to help businesses clearly understand standards, technologies, funding sources, and state support policies.

Additionally, he highlighted that aside from government support, businesses must become more proactive and committed to both digital transformation and green transformation.
This is no longer optional — it is a mandatory requirement for sustainable survival.

Businesses must review operations, eliminate outdated technologies, and optimize processes to cut emissions. Applying digital technologies in energy management, supply chains, and smart manufacturing will help improve operational efficiency, reduce costs, and better meet international standards.

“Green transition is an unstoppable trend. The government must be more proactive in issuing clear policies and supporting businesses throughout the process. At the same time, businesses must seize opportunities, innovate technologies, and strengthen management capacity to integrate into the global green economy. Strong coordination between the government, businesses, banks, and financial institutions will be the key for Vietnam to successfully achieve sustainable development goals and build a modern, efficient green economy,” Mr. Tùng said.