Market Survey: Potential of Green Bond in Viet Nam

At a Glance

Publication Date September 2020
Format pdf
Country Viet Nam
Thematic Area Cross Cutting

It is estimated that fully implementing the Viet Nam NDC and green growth strategy will require USD 30 billion by 2030. This fund cannot come from the public sector alone, either from the central budget or ODA sources. Private sector finance is crucial and green bonds have been recognized as an innovative instrument to support Viet Nam to access both domestic and international
capital markets.

But is the Viet Nam market ready for green bond? What is the status of the market participants, i.e. the local commercial banks towards the green bond? Are there any challenges to invest in green bonds in Viet Nam? What should be done to enhance the green bond market in Viet Nam? As the green finance continues drawing the appetites of developers as well as fund providers, it is essential for the banks to identify key risk barriers, appropriate policy interventions to address the challenges.

GGGI, in partnership with the Government of Viet Nam and the Government of Luxembourg, is implementing the Viet Nam Green Bond Readiness Program (the “Program”) to support the development of a green bond market in Viet Nam. As a part of this Program, GGGI is developing an insight brief to highlight the perspective of financial experts working at financial institutions about the green bond market in Viet Nam through a market survey (the “Survey”). The objective of the Survey is to assess the market appetite of local investors relating to green bond issuance. It also aims to explore potential market drivers, existing barriers as well as priorities to accelerate the green bond investment in Viet Nam. Furthermore, this market survey will help navigate the market preferences from financial institutions regarding green investments and serves as a reference to incorporate GGGI’s works in supporting the pilot issuance of green bond in Viet Nam in the coming time.