In recent years, there has been a significant surge in demand for green loans in Vietnam. Many banks are not only allocating their capital for green and sustainable development projects but also seeking support from foreign Development Finance Institutions (DFIs). MSB is the latest one.
According to the State Bank of Vietnam (SBV) report, the annual average growth rate of Vietnam's green credit balance was approximately 23% from 2017 to 2022. The cumulative green credit balance held by Vietnamese banks and financial institutions mounted to nearly 528.3 trillion VND (approximately $22 billion) by Jun 2023, accounted for about 4.2% of the total credit balance. Out of 12 green areas, renewable energy and clean energy account for 45%, and green agriculture is 31%. There are 43 banks and financial institutions engaged in green financing activities so far.
