Vietnam’s green bond market has grown rapidly, dominated by large corporations and banks, with SMEs accessing capital through green loans from commercial banks. SMEs face persistent barriers, including regulatory uncertainties, complex lending procedures, and limited expertise. These obstacles restrict SME participation in the sustainable finance ecosystem. For foreign investors, particularly DFIs, opportunities lie in bundled investments combining capital with technical assistance to build SME capacity, enabling effective green fund disbursement and supporting Vietnam’s inclusive green transition.<\/p>\n
Market overview<\/strong><\/h3>\nGreen bond is a debt instrument whose proceeds are used to finance or refinance \u201cgreen\u201d projects: those that contribute to environmental sustainability, climate mitigation or adaptation. These bonds share similar structural features with conventional bonds (e.g., fixed interest, scheduled repayment), but come with added transparency and accountability: issuers are expected to clearly allocate proceeds to eligible green projects, report on their use, and often engage external reviewers to verify impact[1]<\/a>.<\/p>\nIn 2016, Vietnam piloted its first green bond issuances in Ho Chi Minh City and Ba Ria-Vung Tau. By 2018, green bonds formally entered the Vietnamese market, though issuance remained modest and mostly from local governments. From 2019 onwards, corporates such as Vinhomes (Vingroup) and Vietnam Electricity (EVN) \u00a0began to issue. By 2022, EVN Finance became the first issuer in Vietnam to structure its green bond under the ICMA Green Bond Principles[2]<\/a>. In 2025, VPBank issues its first Vietnam green bond (USD 300 million) to the international market[3]<\/a>.<\/p>\nVietnam’s green bond market has experienced significant growth in recent years, with total issuances increasing from just USD 284 million during 2016-2020 to approximately USD 1.4 billion by June 2024[4]<\/a>. Despite this rapid expansion, the market remains relatively small when considering the financial need for Vietnam\u2019s green transition. It is estimated that for the green transition in the Vietnamese energy sector, USD 368 billion will be required[5]<\/a>. This gap highlights the need to mobilize green capital and further develop green financing mechanisms to support Vietnam\u2019s climate goals and sustainable economic growth.<\/p>\nMain green bond issuances in 2024 and 2025<\/strong><\/h3>\nThe recent wave of green bond issuances in 2024\u20132025, led by major financial institutions (BIDV, Vietcombank, VPBank) and large corporates relating to water treatment ( IDI Group, Biwase Long An, Hoa Binh – Xuan Mai Clean Water), shows the tendency of large, well-capitalized entities participating in the market. All bonds adhered to the International Capital Market Association (ICMA)\u2019s Green Bond Principles.<\/p>\n
In 2016, Vietnam piloted its first green bond issuances in Ho Chi Minh City and Ba Ria-Vung Tau. By 2018, green bonds formally entered the Vietnamese market, though issuance remained modest and mostly from local governments. From 2019 onwards, corporates such as Vinhomes (Vingroup) and Vietnam Electricity (EVN) \u00a0began to issue. By 2022, EVN Finance became the first issuer in Vietnam to structure its green bond under the ICMA Green Bond Principles[2]<\/a>. In 2025, VPBank issues its first Vietnam green bond (USD 300 million) to the international market[3]<\/a>.<\/p>\n Vietnam’s green bond market has experienced significant growth in recent years, with total issuances increasing from just USD 284 million during 2016-2020 to approximately USD 1.4 billion by June 2024[4]<\/a>. Despite this rapid expansion, the market remains relatively small when considering the financial need for Vietnam\u2019s green transition. It is estimated that for the green transition in the Vietnamese energy sector, USD 368 billion will be required[5]<\/a>. This gap highlights the need to mobilize green capital and further develop green financing mechanisms to support Vietnam\u2019s climate goals and sustainable economic growth.<\/p>\n The recent wave of green bond issuances in 2024\u20132025, led by major financial institutions (BIDV, Vietcombank, VPBank) and large corporates relating to water treatment ( IDI Group, Biwase Long An, Hoa Binh – Xuan Mai Clean Water), shows the tendency of large, well-capitalized entities participating in the market. All bonds adhered to the International Capital Market Association (ICMA)\u2019s Green Bond Principles.<\/p>\nMain green bond issuances in 2024 and 2025<\/strong><\/h3>\n