Many businesses find it difficult to access loans when making green transitions.

Participating in the green transformation process, besides preparing resources, changing awareness and technology, the biggest barrier for businesses is financial issues.

Farmers are ready to change production models

On the morning of February 19, in Ho Chi Minh City, Nguoi Lao Dong Newspaper organized a discussion with the theme "Green transformation: From pressure to business opportunities".

At the seminar, speakers and business representatives discussed issues of green standards in production, green economic trends, green financial resources and obstacles in the green transformation process.

According to Mr. Nguyen Chanh Phuong - Vice President of the Handicraft and Wood Processing Association of Ho Chi Minh City - last year, the export turnover of wood and wood products reached a record of 16.3 billion USD, an increase of nearly 21% compared to 2023. Of which, the United States continued to be the largest export market with 9.1 billion USD, accounting for 56% of the total value.

Mr. Nguyen Chanh Phuong spoke at the seminar. Photo: TL

Participating in the green transition process, according to Mr. Phuong, many wood enterprises have switched to exploiting other natural materials such as rattan, bamboo, and leaves. However, tracing the origin of products made from these materials is difficult. In addition, issues such as governance, taxes, and origin certification processes are still challenging.

After a period of investing in green technology in agriculture, Mr. Nguyen Thai Viet Huy - Chairman of the Board of Directors of Saty Holding Company - realized that farmers are willing to change their production model to be environmentally friendly. However, the biggest barrier is the output for green products because it is difficult to compete with traditional agricultural products.

In addition to supporting farmers with techniques and seeds, Saty Holding is focusing on making the production process transparent using digital technology and quality control. The company representative wants to cooperate with banks to help farmers access green capital and promote sustainable farming models.

Assessing the green transformation process of the city's enterprises, Mr. Dinh Hong Ky - Vice President of the Ho Chi Minh City Business Association (Huba) - said that enterprises have had diverse and strong transformation solutions.

Mr. Dinh Hong Ky said that the biggest difficulty for businesses when converting to green is financial problems. Photo: TL

In 2024, 98 enterprises were honored as “Green Enterprises of Ho Chi Minh City”. This shows that the green transformation trend is not only developing in the city but is spreading. Recently, the campaign committee of the City Green Enterprises Association was also established, gathering many large enterprises to participate.

According to Mr. Ky, 90% of domestic enterprises are small and medium enterprises (SMEs), but most of the enterprises boldly converting to green are large corporations. Participating in this process, SMEs are facing many difficulties from awareness, human resources, technology to finance.

The biggest barrier is finance. According to statistics, about 65% of businesses have difficulty accessing loans to implement green projects. Although there are financial support mechanisms, getting this capital to the right target is a difficult problem.

Early issuance of project list for banks to boldly lend

On behalf of the bank, Mr. Vuong Thanh Long – Director of BIDV Capital and Currency Trading Department – ​​acknowledged that green transformation is both a pressure and an opportunity. In fact, this process requires large capital and modern technology. Although the benefits are clear, businesses still have difficulty accessing capital.

Mr. Vuong Thanh Long suggested that a list of green projects should be soon issued so that banks can use it as a basis for lending. Photo: TL

By the end of 2024, BIDV's total green credit balance will reach VND81,000 billion. In addition to gradually reducing lending limits for high-carbon emission industries such as cement, steel, and fertilizer, BIDV is increasing funding for green projects with preferential interest rates.

To promote the green transition, BIDV representative recommended that a list of green projects, specific standards and conditions should be issued soon so that banks have a basis for lending.

Speaking at the seminar, Mr. Lim Dyi Chang - Director of Corporate Banking, UOB Vietnam said that UOB is implementing many solutions to promote green credit and support Vietnamese enterprises in the process of sustainable development.

This effort not only helps businesses access preferential loans to implement green projects but also contributes to the Government's commitment to reduce greenhouse gas emissions to zero (Netzero) by 2050.

Mr. Lim Dyi Chang (right), representative of UOB Vietnam Bank. Photo: TL

A representative of UOB Vietnam said that to encourage businesses to invest in sustainable projects, the bank is providing green loans with more favorable conditions than traditional loans. Specifically, businesses can borrow up to 70% when their projects meet international sustainability standards.

In addition to project-based investment loans, UOB Vietnam also provides working capital support for green initiatives, enabling businesses to expand operations in environmentally friendly fields.

Dong Nai sends officials abroad to study green transformation

Dong Nai Provincial People's Committee said that it has issued a plan to train cadres, civil servants and public employees on green transformation and Net Zero by 2025.

Economic experts advise Ho Chi Minh City to go green

Economists at the Econometric Society's Asian Conference, East Asia and Southeast Asia 2024 contributed a number of ideas to promote Ho Chi Minh City's development, including green transformation.

Traffic adjustment in Ho Chi Minh City to serve fireworks display to welcome New Year's Eve 2025

The Traffic Police Department, Ho Chi Minh City Police has just issued a notice to adjust traffic in the central area of ​​Ho Chi Minh City in the coming days.

Source: https://vietnamnet.vn/nhieu-doanh-nghiep-kho-tiep-can-von-vay-khi-chuyen-doi-xanh-2372861.html