Businesses must call for 'green capital' from the international market

Mr. Nguyen Xuan Thanh, lecturer at Fulbright School of Public Policy and Management - Photo: AH

Need for breakthrough policies for green capital

Mr. Nguyen Xuan Thanh - lecturer at Fulbright School of Public Policy and Management - said the above at the scientific conference (FINHUB 2024) with the theme "Sustainable development of Vietnam's financial market" organized by Banking University of Ho Chi Minh City.

According to Mr. Thanh, the reason why businesses have to call for green capital from the international market is because green capital often has a lower rate of return, while Vietnam is not familiar with this.

He also commented that Vietnam's green finance and digital finance are still lagging behind the world and the region.

Southeast Asian countries have issued an official legal framework to license digital finance and digital banking, while Vietnam still lacks it. Therefore, there is a need for breakthrough policies to develop green finance and digital finance.

Mr. Nguyen Duc Lenh - Deputy Director of the State Bank of Vietnam, Ho Chi Minh City Branch - also admitted that green credit is still at a modest level, only about 4.5 - 5% compared to total outstanding credit. However, the recent growth rate is quite good, always growing higher than the average credit growth rate of the industry.

According to Mr. Lenh, sustainable economic development needs to go hand in hand with the process of transforming the green - digital - circular economy.

Based on the Government's action program, especially the National Strategy on Climate Change until 2050, the State Bank has developed action programs for the banking sector on green economic development. Awareness of bank staff on green banking, green economy, and green credit has also been raised.

In terms of implementation, commercial banks are promoting green credit lending for green projects such as green energy, green agriculture, activities to create green products...

"The recent growth rate of green credit has been very good due to the great pressure on developing green credit, especially businesses exporting goods to Europe and the US are starting to pay attention to the green origin factor. That is the driving force for developing green credit and becoming a core industry of banks," said Mr. Nguyen Duc Lenh.

Appropriate policies are needed for sustainable development of financial markets.

Dr. Nguyen Anh Vu - Head of Finance Department, Banking University of Ho Chi Minh City - assessed that during the observation period from 1992 to present, the three pillars of banking - insurance - securities have had certain growth and development.

For sustainable development, it is necessary to create a legal environment, investment environment and appropriate incentive policies to develop the insurance market, stock market and financial institutions such as investment funds and pension funds; aiming to build a diverse, balanced and safe financial system.

At the same time, increase the number of listed and registered securities for trading, diversify investment tools, increase accessibility and contribute to reducing risks in the market.

Associate Professor, Dr. Nguyen Duc Trung, Principal of Banking University of Ho Chi Minh City - Photo: AH

Enterprises also need to change their awareness to build a transparent financial information system, in accordance with Vietnamese and international standards, thereby increasing access to capital and diversifying capital mobilization channels.

According to Associate Professor Dr. Nguyen Duc Trung, Principal of Banking University of Ho Chi Minh City, the development of new technologies and their impact on the financial market, issues of supervision, compliance and market discipline.

Developing financial infrastructure, upgrading markets, green finance, and sustainable finance are also new opportunities and challenges for Vietnam's financial system.

The development of the financial market needs to be even, because we have only developed the credit market but not yet developed securities and insurance, these two fields still have a lot of room for development.

To do so, there are solutions from institutional to direct solutions for the market, such as introducing technology products, training, as well as building trust to develop a sustainable financial market.

Source: https://tuoitre.vn/doanh-nghiep-phai-goi-von-xanh-tu-thi-truong-quoc-te-20240720163314619.htm