Vietnam is facing major challenges regarding green finance. The existing instruments mainly rely on state budget and international development cooperation and cannot meet the huge green finance demand. Investments from the domestic private sector need to increase considerably to realize the required economic restructuring towards green growth. With the support of the Programme, a green financial policy framework is developed by the State Bank of Vietnam, the Ministry of Finance and the State Securities Commission under the Ministry of Finance, based on the combination of fiscal policy and refinancing-, credit- policies and financial policies in the capital market. These policies are integrated into the action plans of the entire finance and banking sector. They also serve as the foundation to formulate national green credit programmes and large-scale green bond projects.

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