Hong Minh Le; Vi ian, And ew
A icle
G een bond ma ke in Vie nam: Ba ie s o co po a e
issue s, a ac i eness o in es o s and po en ial g ow h
Asian Jou nal o Economics and Banking (AJEB)
P o ided in Coope a ion wi h:
Ho Chi Minh Uni e si y o Banking (HUB), Ho Chi Minh Ci y
Sugges ed Ci a ion: Hong Minh Le; Vi ian, And ew (2025) : G een bond ma ke in Vie nam: Ba ie s o
co po a e issue s, a ac i eness o in es o s and po en ial g ow h, Asian Jou nal o Economics and
Banking (AJEB), ISSN 2633-7991, Eme ald, Leeds, Vol. 9, Iss. 2, pp. 162-188,
h ps://doi.o g/10.1108/AJEB-05-2025-0045
This Ve sion is a ailable a :
h ps://hdl.handle.ne /10419/334142
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G een bond ma ke in Vie nam:
ba ie s o co po a e issue s,
a ac i eness o in es o s and
po en ial g ow h
Hong Minh Le and And ew Vi ian
Loughbo ough Business School, Loughbo ough Uni e si y, Loughbo ough, UK
Abs ac
Pu pose – This s udy in es iga es he challenges impeding he de elopmen o an e ec i e g een bond ma ke
in Vie nam and e alua es i s po en ial o suppo he coun y’s ansi ion om ca bon-in ensi e indus ies o a
g eene economy, in line wi h i s clima e commi men s.
Design/me hodology/app oach – This s udy uses a quali a i e esea ch app oach, conduc ing semi-s uc u ed
in e iews wi h 15 s akeholde s ep esen ing di e en segmen s o Vie nam’s inancial sec o . Thema ic
analysis was ca ied ou in h ee s ages: ini ial coding, explo ing connec ions be ween codes and de eloping
h ee main hemes: ba ie s o co po a e issue s, in es o a ac i eness and he g een bond ma ke ’s po en ial.
Findings – The majo ba ie s o co po a e issue s include a lack o in e media ies, egula o y sho comings,
high issuance cos s and an unde de eloped co po a e bond ma ke . F om he in es o pe spec i e, g een bonds
a e pe cei ed as less a ac i e due o ela i ely low yields, high p ojec isks, limi ed ma ke awa eness and a
sca ci y o in es men op ions. Despi e hese challenges, he ma ke holds signi ican po en ial, suppo ed by
Vie nam’s ne -ze o ambi ions, go e nmen backing and con inuous legal amewo k imp o emen s.
Resea ch limi a ions/implica ions – The s udy co e s a sample weigh ed owa ds issue s, due o he limi ed
public awa eness o g een in es men . Fu u e esea ch could also include egula o y pe spec i es and use
quan i a i e me hods o expand upon hese indings, especially as he ma ke ma u es. Findings in o m
policymake s and p ac i ione s, o e ing ecommenda ions such as es ablishing in e media ies, de eloping a g een
axonomy, legal e o m, in as uc u e enhancemen and in es o educa ion. A s onge g een bond ma ke can
suppo sus ainable de elopmen , educe emissions and p omo e long- e m en i onmen al and social wellbeing.
O iginali y/ alue – This s udy con ibu es by add essing a esea ch gap in Vie nam’s g een bond ma ke using a
quali a i e, in e iew-based me hod, which is uncommon in he exis ing li e a u e. I o e s eal-wo ld insigh s
om a di e se ange o ma ke ac o s, enabling a mul idimensional unde s anding o ma ke dynamics.
Keywo ds Vie nam, G een bonds, G een economy, Sus ainable inance, G een inance, Ne -ze o ansi ion
Pape ype Resea ch a icle
1. In oduc ion
Amid g owing conce ns o e en i onmen al deg ada ion, clima e change and esou ce
deple ion, he need o sus ainable de elopmen has become inc easingly u gen . In esponse,
he global communi y has adop ed he Uni ed Na ions’ 2030 Sus ainable De elopmen Goals
(SDGs) and he Pa is Ag eemen , emphasising he in eg a ion o economic g ow h, social
inclusion and en i onmen al p o ec ion. Achie ing hese goals, howe e , demands la ge-scale
in es men and inno a ion, wi h g een inance, pa icula ly ins umen s like g een bonds,
playing a pi o al ole in unding clima e- esilien and sus ainable p ojec s.
Despi e global p og ess in g een inance, eme ging economies o en ace challenges ha
hinde hei de elopmen and g ow h in his a ea. Vie nam, a as -g owing Sou heas Asian
na ion ha is highly ulne able o clima e change, o e s a s iking example. The coun y has
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© Hong Minh Le and And ew Vi ian. Published in Asian Jou nal o Economics and Banking.
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Recei ed 11 May 2025
Re ised 15 June 2025
Accep ed 25 June 2025
Asian Jou nal o Economics and Banking
Vol. 9 No. 2, 2025
pp. 162-188
Eme ald Publishing Limi ed
e-ISSN: 2633-7991
p-ISSN: 2615-9821
DOI 10.1108/AJEB-05-2025-0045
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s ong clima e policy commi men s, including aligning wi h SDGs and pledging ne -ze o
emissions by 2050. Ye , i s g een bond ma ke emains unde de eloped compa ed o
egional pee s.
This s udy aims o explo e he disconnec be ween Vie nam’s ambi ious clima e a ge s and
i s ela i ely low g een bond ac i i y. The ul ima e objec i e and con ibu ion o his esea ch
is wo old. Fi s ly, o unco e he challenges and oppo uni ies ha impac he g ow h o g een
inance in Vie nam. Secondly, o de elop p ac ical s a egies and ecommenda ions ha can
enable he po en ial o g een bonds o be ully ha nessed. These insigh s would help he
coun y achie e i s sus ainabili y goals. The ecommenda ions om his ma ke could guide
policymake s and p ac i ione s in o he coun ies as well; hus signi ican ly impac ing global
clima e p og ess.
The s udy is s uc u ed as ollows: Sec ion 1: In oduc ion ou lines he global and na ional
con ex o sus ainable de elopmen ; Sec ion 2: Li e a u e Re iew deals wi h a g een bond
amewo k, highligh ing i s ad an ages/disad an ages and impac s; Sec ion 3: Resea ch
Me hodology de ails a quali a i e app oach in ol ing semi-s uc u ed in e iews; Sec ion 4:
Findings iden i ies ba ie s o issue s, a ac i eness o In es o s and po en ial o he G een
Bond Ma ke in Vie nam; Sec ion 5: Discussion de elops h ee p oposi ions and Sec ion 6:
Conclusion e lec s on he s udy’s con ibu ions and policy implica ions.
1.1 Sus ainable de elopmen and clima e ac ion – global and Vie nam p ac ices
In 2015, he Uni ed Na ions es ablished he SDGs as pa o he 2030 Agenda o ackle
in e connec ed global challenges. Tha same yea , global leade s achie ed a key miles one a
COP21 in Pa is by adop ing he Pa is Ag eemen , which was endo sed by 196 pa ies and
became legally binding in 2016. The Ag eemen ’s goal is o keep global wa ming well below
28C, wi h an ideal a ge o 1.58C abo e p e-indus ial le els (Uni ed Na ions, 2023a, b). To
achie e his ambi ious goal, coun ies submi ed hei Na ionally De e mined Con ibu ions
(NDCs), ou lining hei a ge s o educing emissions and implemen ing clima e- ela ed
ac ions.
In 2015, Vie nam emb aced he 2030 Agenda o Sus ainable De elopmen . The 17
global SDGs ha e been ansla ed in o 115 Vie nam SDG (VSDG) a ge s as pa o he
Na ional Ac ion Plan o Implemen a ion o Agenda (2030) o Sus ainable De elopmen
(SDG NAP) (Uni ed Na ions, 2018a, b), which was s ipula ed in Decision 633/QD-TTg
(Uni ed Na ions Vie nam, 2017). Mo eo e , sus ainable de elopmen p inciples ha e been
mains eamed in o he 2011–2020 Social and Economic De elopmen S a egy (SEDS) and
he 2016–2020 Social and Economic De elopmen Plan (SEDP). In he coming yea s, he
SDGs will be in eg a ed in o Vie nam’s 2021–2030 SEDS and 2021–2025 SEDP (Uni ed
Na ions, 2018a, b).
Vie nam is highly ulne able o na u al disas e s and clima e change, p omp ing s ong
commi men o clima e ac ion and a low-ca bon economy. Vie nam commi ed o educing i s
g eenhouse gas emissions by 8% by 2030, wi h a 25% a ge condi ional on global suppo , and
con ibu ed USD 1 million o he G een Clima e Fund (Minis y o Indus y and T ade o
Vie nam, 2021). A COP26, Vie nam u he commi ed o achie ing ne ze o emissions by
2050 and educing me hane emissions by 30% om 2020 le els by 2030 (Socialis Republic o
Vie nam, 2022a, b).
1.2 The need and po en ial g ow h o g een inance
The SDGs ou line he UN’s ision o a sus ainable socie y, wi h add essing he inancial gap,
especially o clima e and en i onmen al goals, being a key p io i y. Clima e inance is a
c ucial elemen in achie ing he 2030 Agenda, as highligh ed in he UN Sec e a y-Gene al’s
ecen s a egy (Uni ed Na ions, 2018a, b).
Acco ding o he Ene gy T ansi ions Commission (2023), achie ing a ne -ze o global
economy by 2050 equi es abou USD 110 illion in capi al in es men om 2021 o 2050,
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a e aging USD 3.5 illion annually, exceeding he UK’s 2023 GDP o USD 3.1 illion (Wo ld
Bank, 2023). This is o e h ee imes he cu en annual in es men o USD 1 illion
(Racon eu , 2023). No ably, as shown in Table 1, 70% o his in es men will a ge low-
ca bon powe gene a ion, ansmission and dis ibu ion, which a e c i ical o deca bonising
nea ly all economic sec o s (Ene gy T ansi ions Commission, 2023).
1.3 Global cu en g een bonds ma ke
As shown in Table 2, om 2019 o 2023, global g een bond issuance o alled USD 1.7 illion.
Eu ope led wi h USD 1.1 illion (63.1%), ollowed by Asia wi h USD 234.8 billion (13.6%)
and No h Ame ica wi h USD 214.6 billion (12.4%). A ica lagged signi ican ly, issuing only
USD 10.4 billion (0.6%). This highligh s egional dispa i ies in sus ainable inance and he
po en ial o g ow h in unde de eloped ma ke s.
1.4 Vie nam’s cu en g een bond ma ke
1.4.1 G een inance gap in Vie nam. To mee he a ge s o comba clima e change, he
Vie namese go e nmen aims o inc ease enewable ene gy’s sha e in elec ici y p oduc ion
om 16.8% in 2022 o 33% by 2030 and 55% by 2050 (Decision No. 896/QD-TTg, 2022).
McKinsey (2022) es ima es ha eaching ne -ze o will equi e abou USD 30 billion in annual
in es men . Wi hou his in es men and co esponding policy and indus ial changes,
Vie nam’s emissions could nea ly quad uple by 2050.
1.4.2 G een bonds in Vie nam. To b idge he g een inance gap, Vie nam has ac i ely
p omo ed g een bonds (Eas Asia Fo um, 2023). A signi ican miles one occu ed in July
2022, when EVN Finance JSC issued a domes ically- alida ed g een bond wo h USD 75
million, ecei ing in e na ional e i ica ion. The Global G een G ow h Ins i u e p o ided
echnical suppo , while Gua an Co con ibu ed a USD 50 million sponso ship, highligh ing
Vie nam’s commi men o sus ainable g ow h and global en i onmen al goals (Global G een
G ow h Ins i u e, 2022).
As shown in Table 3, in ASEAN (excluding Singapo e), Indonesia leads he G een Bond
ma ke wi h a cumula i e issuance o USD 8.0 billion om 2012 o 2022 (IFC and Amundi,
2023). Thailand ollows wi h USD 3.6 billion, he Philippines wi h USD 2.8 billion and
Malaysia wi h USD 1.3 billion. Vie nam lags behind a jus USD 0.2 billion, despi e s ong
go e nmen commi men o clima e goals, which is well below he in es men le el o USD 30
billion pe yea o d i e p og ess owa ds he ne -ze o a ge (McKinsey, 2022).
Table 1. Global capi al in es men equi emen s by economic sec o s
Economic
sec o s
Global
capi al
in es men
equi emen s
(USD billion) %
To al 3,465 100%
Powe sec o 2,400 70%
Buildings 500 14%
T anspo 280 7%
Remo als 135 4%
Hyd ogen 80 3%
Indus y 70 2%
Sou ce(s): Ene gy T ansi ions Commission – Financing he T ansi ion: How o Make he Money Flow o a
Ne -Ze o Economy – Ma ch 2023
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Gi en he small size o Vie nam’s g een bond ma ke despi e i s ne -ze o ambi ions, he e is
a clea need o in es iga e he ac o s behind i s unde de elopmen . This esea ch seeks o
iden i y he key ba ie s and ecommend s a egies o help Vie nam ca ch up wi h mo e
ad anced egional pee s.
2. Li e a u e e iew
Inc easing awa eness o en i onmen al issues, combined wi h he implemen a ion o
egula ions and policies by go e nmen s and in e na ional o ganisa ions o suppo g een
ini ia i es, has heigh ened he ocus on sus ainable and eco- iendly inancing op ions.
Consequen ly, nume ous s udies a global, egional and na ional le els ha e been ca ied ou o
explo e di e en aspec s o g een bonds and o e ecommenda ions on how o e ec i ely
access his ma ke .
2.1 Theo e ical amewo k o g een bonds
The In e na ional Capi al Ma ke s Associa ion (ICMA) has ou lined he G een Bond
P inciples, which cha ac e ise g een bonds as inancial ins umen s designa ed o he sole
pu pose o unding o e inancing ei he pa ially o en i ely, new and/o exis ing eligible g een
p ojec s. G een bonds may be issued by public bodies o by p i a e ins i u ions o inance
en i onmen al ini ia i es. To gua an ee ha he unds a e used app op ia ely and align wi h he
in ended pu poses, an independen and c edible hi d pa y should o e see hei managemen ,
ensu ing anspa ency and in eg i y in he p ocess. The key elemen s o g een bonds a e:
(1) Deb Ins umen : G een bonds a e a deb inancial ins umen simila o adi ional
bonds.
Table 2. G een bond issuance olume by egion (USD billion)
Yea A ica Asia Eu ope
No h
Ame ica Oceania
Sou h
Ame ica
Sup a-
na ionals To al
2019 2 28 127 28 3 7 21 215.9
2020 1 22 162 41 4 3 13 246.5
2021 3 79 359 71 6 5 37 560.9
2022 4 64 271 46 9 3 45 441.3
2023 0 42 171 28 6 0 16 262.0
Sou ce(s): ICMA Sus ainable Finance – Sus ainable Bond Ma ke Da a
Table 3. Cumula i e olume o G een bonds issued in 2012–2022 (USD billion)
Coun y
Cumula i e
olume o
g een bonds
issued in
2012–2022
(USD
billion)
Indonesia 8.0
Malaysia 1.3
Philippines 2.8
Thailand 3.6
Vie nam 0.2
Sou ce(s): IFC and Amundi – Eme ging Ma ke G een Bonds Repo – July 2023
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(2) Exclusi e Use o P oceeds: The unds aised h ough g een bonds mus be dedica ed
exclusi ely o inance o e inance g een p ojec s.
(3) Eligible G een P ojec s: Mus mee c i e ia unde amewo ks like he G een Bond
P inciples o Clima e Bonds S anda d.
(4) T anspa ency and Repo ing: Issue s mus egula ly epo on und alloca ion and
en i onmen al impac o ensu e accoun abili y.
2.2 Impac o g een bonds
G een bonds ha e become a c ucial inancial ins umen , deli e ing wide- anging bene i s
ac oss en i onmen al, economic and social sec o s, hus playing a signi ican ole in
p omo ing sus ainable de elopmen .
En i onmen ally, acco ding o he Eu opean Commission’s Join Resea ch Cen e (2021),
issue s o g een bonds ha e lowe ed ca bon emissions by an a e age o 4%, wi h newe
ini ia i es achie ing educ ions abo e 8% compa ed o adi ional inancing. Economically,
g een bonds o e se e al ad an ages. Fi s ly, hey gene ally ea u e a “g eenium”, a lowe
yield compa ed o con en ional bonds, making hem a cos -e ec i e inancing ool. S udies
(Aglia di and Aglia di, 2019; Gian a e and Pe i, 2019) ound he g eenium anges om 0.43
o 20 basis poin s, o en o se ing he highe issuance cos s. In eme ging ma ke s, he
g eenium widened om 4.2 basis poin s in 2021 o 7.2 in 2022 (IFC and Amundi, 2023). G een
bond issuance also bene i s sha eholde s by boos ing s ock p ices and imp o ing liquidi y
(Tang and Zhang, 2020). I is also suppo ed by go e nmen incen i es, such as Thailand’s ee
wai e s (ADB, 2022) and Vie nam’s Ci cula No. 101/2021/TT-BTC, which p o ides ax
b eaks and c edi a ing enhancemen s.
G een bonds a e associa ed wi h enhanced ESG p ac ices, pa icula ly among i s - ime
issue s who adop explici sus ainabili y goals (Miglio elli and Desse ine, 2020). These
issue s end o show g ea e accoun abili y and openness, s eng hening s akeholde
con idence and social legi imacy. O e all, g een bonds se e no only as a sou ce o
unding bu also as a ca alys o ansi ioning o a low-ca bon, inclusi e and esilien
economic sys em.
2.3 Ba ie s o g een bond g ow h – global and eme ging ma ke s
Al hough g een bonds o e well- ecognised ad an ages, hey s ill ep esen a ela i ely small
sha e, app oxima ely 3% o he global bond ma ke (Clima e Bonds Ini ia i e, 2019). As no ed
by Desch y e and Ma iz (2020), se e al ac o s con ibu e o his limi ed up ake: (1) he lack
o in e na ionally uni ied s anda ds, (2) ea s o g eenwashing, (3) he pe cep ion among
issue s ha g een bonds en ail highe cos s and (4) he ma ke ’s ea ly s age o ma u i y, which
esul s in a limi ed supply o g een bonds o in es o s.
In de eloping coun ies, challenges include weak ins i u ional amewo ks, high issuance
cos s and minimum size equi emen s (Banga, 2018). Nguyen e al. (2022) also highligh
ague de ini ions, inancial conce ns and COVID-19 dis up ions. Meanwhile, demand
ou paces supply in eme ging ma ke s, as shown by widening G eenium ends (IFC and
Amundi, 2023) and in es o su eys in Malaysia and Thailand (GGGI and ADB, 2022).
2.4 G een bonds legal amewo k
The global egula o y ounda ion o g een bonds began wi h ICMA’s G een Bond P inciples
in 2014 o imp o e anspa ency and in eg i y. In he EU, key miles ones include he 2020 EU
Taxonomy o sus ainable ac i i ies and he 2023 EU G een Bond S anda d. In ASEAN, he
ASEAN G een Bond S anda ds we e in oduced in 2017 and upda ed in 2018, aligned wi h
ICMA p inciples. The ASEAN Taxonomy o Sus ainable Finance was launched in 2021, wi h
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a second e sion eleased in 2023, o e ing a uni ied amewo k ailo ed o he egion’s di e se
economies. De ails on Global and Regional G een Bond P inciples and G een S anda ds a e
summa ised in Table 4.
Following he issuance o global and egional s anda ds and axonomy o sus ainable
inance, e o s ha es ablish a p o ound legal amewo k ha e accele a ed ac oss ASEAN,
wi h Indonesia, Malaysia, Philippines, Thailand and Vie nam ha ing ei he de eloped o been
in he p ocess o de eloping hei na ional axonomies. De ails on he Na ional G een Bond
F amewo k and G een Taxonomy in Sou h Eas Asia a e summa ised in Table 5.
Despi e being in oduced unde he ixed-income egula o y amewo k, Vie nam’s g een
bond ma ke emains unde de eloped due o key cons ain s: a lack o clea classi ica ion o
g een asse s, insu icien issuance guidance and low s akeholde awa eness and capaci y.
Compa ed o egional pee s, Vie nam lags in i s legal amewo k o g een bonds, as i is s ill
de eloping i s Na ional G een Taxonomy, highligh ing he coun y’s ongoing e o s o align
wi h in e na ional s anda ds and egional p og ess in sus ainable inance.
A g een bond axonomy could ans o m Vie nam’s ma ke by p e en ing g eenwashing,
enhancing in es o us and inc easing unding o enewable sec o s. By aligning wi h
ASEAN and EU axonomy s anda ds – like Singapo e and Indonesia – Vie nam can de elop a
c edible, in e na ionally ecognised amewo k ailo ed o i s local con ex . This alignmen
would boos Vie nam’s egional compe i i eness and appeal o o eign in es o s.
2.5 G een bonds esea ch in Vie nam
Rega ding he nascen G een bond ma ke in Vie nam, he numbe o esea ches speci ically
designed o add ess his issue o his pa icula ma ke is ela i ely limi ed. One no able s udy
by Tu e al. (2020) used he Analy ic Hie a chy P ocess (AHP) o iden i y key ac o s
in luencing ma ke de elopmen , highligh ing he legal amewo k and SBV’s mone a y
policy as mos impac ul, while poli ical s abili y and social suppo we e leas in luen ial.
Howe e , as he s udy p eda es ecen egula o y and ma ke changes, i s indings may be
ou da ed. Mo eo e , MCDM me hods like AHP ha e inhe en limi a ions, such as a na ow
ac o scope and po en ial omission o c i ical a iables, which can a ec he alidi y and
comp ehensi eness o conclusions. Upda ed esea ch is needed o e lec cu en ma ke
dynamics and egula o y de elopmen s.
3. Resea ch Me hodology
In o de o complemen he selec ion o esea ch on he g een bond ma ke in Vie nam and o
unco e he ba ie s o g een bond issuance in Vie nam om he iewpoin s o indus y
expe s, in e iews a e employed as he chosen me hodology o his esea ch. This app oach
o e s ich, in-dep h quali a i e da a wi h lexibili y o explo e eme gen hemes, and di ec
insigh in o pa icipan s’ pe spec i es, making i ideal o cap u ing complex, subjec i e
expe iences.
3.1 Resea ch se ing and sample
This esea ch employs a quali a i e app oach cen ed on indi idual in e iews. Gi en he ea ly
s age and limi ed awa eness o he g een bond ma ke in Vie nam, in e iews o e an e ec i e
way o explo e he subjec in dep h. By engaging di ec ly wi h expe s, he s udy can access
de ailed knowledge, insigh s and eal-wo ld expe iences ha may no be a ailable h ough
o he me hods. This app oach helps e eal he unique challenges and oppo uni ies wi hin
Vie nam’s g een bond sec o , p o iding a ho ough unde s anding o he ma ke ’s complexi ies
and po en ial.
The esea ch sample consis s o 15 ca e ully chosen pa icipan s, all o whom possess
pe inen expe ience wi hin Vie nam’s g een bond sec o . These pa icipan s a e d awn om
di e se segmen s o he inancial indus y in Vie nam, including banking, secu i ies i ms,
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Table 4. Global and egional g een bond p inciples and g een s anda ds
Scope Name Issue Time Desc ip ion
Global G een Bond
P inciples
The ICMA 2014 The G een Bond P inciples, a se o olun a y
guidelines o issuing g een bonds, ha e been
o mula ed o enhance anspa ency, disclosu e and
epo ing wi hin he G een Bond ma ke . These
p inciples ad oca e o a anspa en p ocess and
disclosu e equi emen s o issue s, o e ing a
amewo k ha in es o s, banks, unde w i e s,
placemen agen s and o he s akeholde s can u ilize o
gain insigh s in o he speci ics o any gi en G een
Bond. A he hea o he G een Bond P inciples lies
he assessmen o he u iliza ion o p oceeds, which
includes a ange o sec o s ha quali y o g een bonds
unde hese p inciples, such as enewable ene gy,
sus ainable anspo a ion, en i onmen ally- iendly
cons uc ion, clima e change adap a ion and a ious
o he sec o s (ICMA, 2021)
The EU EU G een
Bond
S anda d
The
Eu opean
Union
2023 The EU G een Bond S anda d es ablishes a
amewo k o s anda ds and c i e ia applicable o
g een bonds issued wi hin he Eu opean Union (EU).
I s p ima y objec i es a e o enhance anspa ency,
c edibili y and uni o mi y wi hin he g een bond
ma ke , all while aligning wi h he EU’s
en i onmen al and clima e goals. The EU GBS o ms
an in eg al pa o he b oade sus ainable inance
ini ia i es unde aken by he Eu opean Union, which
encompasses he EU Taxonomy Regula ion. I
unc ions as a complemen a y ool o he axonomy by
o e ing p ecise di ec i es and guidelines speci ically
ailo ed o g een bonds (Cadwalade , 2023)
EU axonomy
o
sus ainable
ac i i ies
The
Eu opean
Union
2020 The EU axonomy o sus ainable ac i i ies is a
classi ica ion sys em ha es ablishes c i e ia o
economic ac i i ies ha a e in line wi h bo h a ne -
ze o emissions ajec o y by 2050 and b oade
en i onmen al objec i es, encompassing a eas
beyond clima e conside a ions (Eu opean
Commission, 2023a, b)
The
ASEAN
ASEAN
G een Bond
S anda ds
The ACMF Ini ial
elease:
2017
La es
lease:
2018
De i ed om ICMA’s G een Bond P inciples, he
ASEAN G een Bond S anda ds se e as a se o
guidelines me iculously designed o enhance
consis ency, anspa ency and c edibili y h oughou
he issuance o g een bonds wi hin he ASEAN
egion. These s anda ds a e c a ed o es ablish
p ecise c i e ia and p e equisi es o he iden i ica ion
and e i ica ion o g een p ojec s, he eby ac i ely
p omo ing sus ainable in es men s and s imula ing
he expansion o he g een bond ma ke . While
ICMA’s G een Bond P inciples o e o e a ching
p inciples pe aining o g een bonds, he ASEAN
G een Bond S anda ds aim o u nish mo e de ailed
ins uc ions on how hese p inciples should be applied
ac oss ASEAN coun ies o wa an he label o
“ASEAN G een Bonds” (ACMF, 2023)
(con inued )
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consul ing se ices and ma ke esea ch en i ies. The delibe a e selec ion o pa icipan s
ensu es a well- ounded ep esen a ion o iewpoin s, encapsula ing a pano amic iew o he
g een bond landscape. To enhance he igou o he s udy, he pa icipan s a e ca ego ised in o
i e dis inc g oups: Issue s, In e media ies (Unde w i e s), Ins i u ional In es o s, Indi idual
In es o s and O he s (Ma ke esea ch se ices, Consul ing se ices). Each g oup is p o ided
wi h a cus omised se o in e iew ques ions, me iculously designed o add ess hei speci ic
oles and an age poin s wi hin he g een bond ecosys em. This ailo ed app oach ensu es ha
he in e iews emain ocused and yield a ge ed insigh s.
The in e iews a e semi-s uc u ed, meaning hey a e guided by a se o p epa ed ques ions
bu allow lexibili y o ollow he na u al di ec ion o he con e sa ion. This app oach le s
pa icipan s exp ess hei ideas eely and explo e opics ha may eme ge unexpec edly. I also
enables he in e iewe o ask ollow-up ques ions o gain deepe insigh in o speci ic poin s
aised. Using semi-s uc u ed in e iews helps he esea ch cap u e a b oad ange o
pe spec i es, expe iences and insigh s on g een bonds in Vie nam. This me hod encou ages
pa icipan s o p o ide de ailed explana ions, sha e pe sonal expe iences and o e ich,
con ex -d i en esponses beyond s anda d answe s. Consequen ly, he s udy aims o deli e a
nuanced and comp ehensi e unde s anding o Vie nam’s g een bond ma ke , based on he eal-
wo ld knowledge and expe ise o hose in ol ed.
3.2 Da a collec ion
The sample o he esea ch consis s o 15 pa icipan s wi h ele an expe ience in g een bonds
in Vie nam, who a e cu en ly wo king in Vie nam’s inancial indus y wi h a ious sub-
sec o s (banking, secu i y company, consul ing se ices and ma ke esea ch se ices). These
pa icipan s ha e been in en ionally selec ed o co e a ious aspec s o he g een bond ma ke
in Vie nam wi h co esponding poin s o iew. The 15 pa icipan s a e ca ego ised in o i e
g oups: Co po a e Issue , In e media y (Unde w i e ), Ins i u ional In es o s, Indi idual
Table 4. Con inued
Scope Name Issue Time Desc ip ion
ASEAN
Taxonomy o
Sus ainable
Finance
The
ASEAN
Taxonomy
Boa d
Ve sion
1: 2021
Ve sion
2: 2023
The ASEAN Taxonomy o Sus ainable Finance
se es as a sha ed amewo k o sus ainable inance
p ac ices in he egion and unde sco es he
signi icance o ha ing an all-encompassing, inclusi e
guide ha uni ies he e o s wi hin he ASEAN
communi y. This axonomy is i mly g ounded in
scien i ic p inciples and ep esen s an inclusi e
app oach o ca ego izing ac i i ies based on hei
impac on he en i onmen wi hin he ASEAN egion
(ASEAN, 2023)
The ASEAN Taxonomy o Sus ainable Finance is
designed as a lexible, mul i- ie ed amewo k ha
akes in o conside a ion he unique cha ac e is ics and
a ia ions among ASEAN Membe S a es. I
comp ises wo p ima y componen s: he Founda ion
F amewo k, which is uni e sally applicable ac oss all
ASEAN Membe S a es and acili a es a quali a i e
e alua ion o ac i i ies, and he Plus S anda d, which
inco po a es speci ic me ics and h esholds o
p o ide a mo e de ailed and compa a i e assessmen
o eligible g een ac i i ies and in es men s (ASEAN,
2021)
Sou ce(s): Au ho s’ compila ion om mul iple sou ces
Asian Jou nal o
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Banking
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bonds. These in e media ies a e i al o ensu ing anspa ency and adhe ence o in e na ional
s anda ds, c ucial o he ma ke ’s g ow h.
Building upon his absence o in e media ies, In e iewee A1 poin ed ou he need o
comp ehensi e egula o y es uc u ing. The exis ing legal amewo k go e ning g een bond
issuance in Vie nam has se e al key egula o y gaps ha equi e a en ion. This includes he
need o a na ional g een classi ica ion sys em, speci ic echnical guidance o g een bond
issuance, p ocedu es ela ed o Thi d-Pa y Audi s o Second-Pa y Opinions and he
es ablishmen o a p ice mechanism o s able suppo sou ce. Thus, egula o y enhancemen s
a e essen ial o encou age g een p ojec s and align he Vie namese ma ke wi h in e na ional
bes p ac ices.
In e iewee A3 b ough o ligh ano he conce n: he ele a ed cos associa ed wi h
g een bond issuance. Despi e incen i es o a ious aspec s o g een bond issuance, he
o e all cos emains high compa ed o egula bonds. Unde he guidelines ou lined in
Ci cula No. 101/TT-BTC, bo h g een bond issue s and in es o s a e eligible o a 50%
discoun on a ious se ice ees. These discoun ed se ices include egis a ion o
lis ing, lis ing managemen , ansac ion- ela ed cha ges, secu i ies egis a ion ees,
pa ial cancella ion o secu i ies egis a ion and secu i ies deposi o y ees. Howe e ,
g een bond issuance necessi a es a g een bond ce i ica e and ongoing expenses ela ed o
in o ma ion disclosu e and epo ing. Addi ionally, managing p oceeds h oughou he
p ojec ’s li ecycle adds o hese expenses, making g een bond issuance inancially
bu densome.
In e iewee A6 unde sco ed he unde de eloped na u e o Vie nam’s co po a e bond
ma ke as a challenge a ec ing g een bonds. A numbe o limi a ions ha hinde he
Figu e 1. Da a s uc u e. Sou ce: Figu e by au ho s
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de elopmen o he co po a e bond ma ke in Vie nam and a ec he a ac i eness o g een
bonds a e he lack o anspa ency and in o ma ion disclosu e, he absence o co po a e bond
c edi a ing ac i i ies, he absence o a cen alised ading pla o m and he p e alence o
p i a ely issued bonds. This unde de elopmen has implica ions no only o g een bonds bu
also o he b oade co po a e bond ma ke in Vie nam.
Speci ically add essing inancial ins i u ions (FIs), In e iewee A4 no es hei p e e ence
o g een loans o e g een bonds due o hei simplici y and accessibili y du ing he ea ly
s ages o g een inance adop ion. Building on he ba ie s o inancial ins i u ions, In e iewee
A5 highligh s he unique challenges FIs ace, pa icula ly ega ding capi al u ilisa ion con ol
when issuing g een bonds. These complexi ies a ise because FIs ely on a di e se po olio o
g een p ojec s a he han a single, speci ic p ojec . Tailo ed guidance is essen ial o s eamline
capi al managemen and alloca ion p ocesses o FIs issuing g een bonds.
4.2 A ac i eness o in es o s
The in e iewees collec i ely p o ided aluable insigh s in o he cu en landscape o demand
o g een bonds in Vie nam, shedding ligh on se e al pi o al ac o s ha con ibu e o he
ma ke ’s ela i ely low demand. These ac o s include ela i ely lowe yields and highe
associa ed isks compa ed o o he in es men op ions, limi ed awa eness o esponsible
in es men wi hin he domes ic ma ke and a sca ci y o di e se in es men p oduc s o
po en ial in es o s.
In e iewee D1 b ough a en ion o he compe i i eness o in e es a es, highligh ing a
c i ical aspec ha a ec s in es o p e e ences. Speci ically, i was poin ed ou ha g een
bonds o en do no o e in e es a es as a ac i e as hose a ailable wi h comme cial eal
es a e bonds. This di e ence in yield can de e po en ial in es o s om op ing o g een bonds,
especially when highe e u ns a e a ailable h ough o he in es men a enues. In e iewees
D1 and D2 as indi idual in es o s also ag eed ha cu en ly in Vie nam’s co po a e bond
ma ke , comme cial eal es a e bond is dominan wi h a ac i e yield and mos accessible o
indi idual in es o s.
In e iewee C1 highligh ed he issue o awa eness wi hin he domes ic ma ke , a
undamen al ac o in luencing demand. I was e ealed ha bo h in es o s and issue s in
Vie nam exhibi limi ed unde s anding and awa eness o esponsible in es men . No ably,
mos o he demand o g een bonds is gene a ed by o eign in es o s and o ganisa ions. This
inding sugges s ha aising awa eness and educa ion wi hin he domes ic ma ke abou he
bene i s and signi icance o g een in es men s could play a pi o al ole in s imula ing demand.
In e iewee E3 b ough o wa d he i al conside a ion o isk associa ed wi h g een
p ojec s, adding dep h o he unde s anding o demand challenges. I was unde sco ed ha
g een p ojec s o en equi e subs an ial inancial esou ces, possess ex ended payback pe iods
and can be in luenced by go e nmen p icing mechanisms ela ed o enewable ene gy sou ces.
In 2022, nume ous enewable ene gy i ms in Vie nam expe ienced inancial losses a ibu able
o shi s in elec ici y p ocu emen policies and he p olonged epe cussions o he COVID-19
pandemic (The In es o , 2023). Fu he mo e, se e al companies ope a ing in he wind powe
sec o ha e incu ed losses as a esul o issuing bonds wi h inc eased in e es a es. No ably,
T ung Nam Dak Lak 1 Wind Powe JSC epo ed a subs an ial loss o VND 860 billion
(equi alen o USD 36.7 million) in 2022, compa ed o he ne p o i o only o e VND 1 billion
in 2021 (VnExp ess, 2023; The Saigon Times, 2023). The majo i y o wind a ms expe iencing
inancial losses p ocu ed unds om he co po a e bond ma ke and hese companies a e
g appling wi h ele a ed inancial le e age and nega i e cash low, esul ing in a signi ican
bu den on hem wi h deb - o-equi y a io su ging o i e o six imes highe han hei equi y
(The Saigon Times, 2023). These cha ac e is ics in oduce a le el o inancial isk ha po en ial
in es o s may pe cei e as a de e en , impac ing he o e all demand o g een bonds.
In e iewee E2 shed ligh on he a ailabili y o in es men p oduc s, a c ucial componen in
gauging ma ke demand. I was no ed ha he limi ed popula i y o g een bond ading in
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Vie nam esul s in a sca ci y o in es men op ions o indi iduals and o ganisa ions seeking
en i onmen ally esponsible oppo uni ies. This dea h o choices o in es o s o compa e
wi h con en ional bonds complica es he assessmen o he ma ke ’s ac ual demand o g een
bonds. Indi idual in es o s D1 and D2 also con i med ha hey ha e ne e been in oduced o
any g een bond in es men op ions by he b oke s/ inancial ad iso s/weal h manage s.
4.3 Po en ial o he g een bond ma ke in Vie nam
While he e a e e iden ly some ba ie s acing issue s, and he cu en demand o g een bonds
wi hin he Vie namese ma ke emains ela i ely modes , i is no ewo hy ha he in e iewees
uni o mly emphasized he subs an ial po en ial ha lies ahead. In e iewee E1 unde sco ed he
eno mous inancial equi emen s necessa y o achie e Vie nam’s ambi ious ne -ze o emissions
goal by 2050. Mee ing his a ge demands signi ican capi al, wi h a signi ican po ion
an icipa ed o o igina e om he p i a e sec o . In e iewee A2 accen ua ed he commi men o
he Vie namese go e nmen o he de elopmen o g een bonds. Recognizing he signi icance
o sus ainable inance, he go e nmen has p oac i ely p omo ed g een bonds since as a back
as 2012, designa ing hem as a p io i y. This sus ained commi men signals a conduci e
en i onmen o he expansion o he g een bond ma ke in Vie nam. In e iewee A1 u he
ein o ced he go e nmen ’s dedica ion by highligh ing he con inuous enhancemen o he
legal amewo k su ounding g een bonds despi e he cu en gaps, which a e expec ed o be
add essed in he o eseeable u u e. In e iewees’ ep esen a i e quo es o each inding a e
illus a ed in Table 8.
5. Discussion
Now we p esen a discussion o he esea ch indings, e lec ing he pe spec i es and
expe iences o ma ke pa icipan s conce ning he eme gence o he g een bond ma ke in
Vie nam. Building on his discussion, se e al p oposi ions a e o mula ed, which se e as
ecommended subjec s o u u e esea ch and in es iga ion.
G een bonds ha e su aced as p omising inancial ools o secu ing unds o en i onmen ally
iendly p ojec s. In ecen imes, hese bonds ha e made in oads in o he Vie namese ma ke ,
aiming o c ea e a iable in es men a enue ha p omo es ESG in es men and sus ainable
de elopmen . The Vie namese go e nmen has been ac i ely in ol ed in nu u ing and ad ancing
domes ic g een bond ma ke s. The insigh s and expe iences sha ed by ma ke pa icipan s ha e
shed ligh on he ba ie s aced by issue s, he appeal o in es o s and he po en ial o he g een
bond ma ke in Vie nam. F om his s udy, h ee key p oposi ions eme ge, which a e:
P oposi ion 1. The e a e se e al key ba ie s acing g een bond co po a e issue s in
Vie nam. These include: he absence o in e media ies, incomple e legal
amewo k, high issuance cos , unde -de eloped co po a e bond ma ke ,
speci ic ba ie s o FIs (disad an age o G een bond compa ed wi h
G een loan).
Rega ding he absence o in e media ies in Vie nam’s g een bond ma ke , his poin e lec s he
indings om he s udy by T an (2023), who poin ed ou he limi a ions in Vie nam’s g een
bond ma ke , including he lack o ac i i ies o in e media ies such as c edi a ing agencies,
independen a ing agencies, acc edi ing o ganisa ions o de e mine whe he he p ojec is
“g een”. The s udy also con i med he sho age o legal p o isions o moni o he pu pose o
p oceeds, sepa a e accoun ing and pos -issuance epo s as well as he absence o speci ic
guidelines o g een bond issuance. In addi ion, he lack o a p ice mechanism o enewable
ene gies in Vie nam has c ea ed a s a e o unce ain y. This unce ain y has led o a ious
challenges, including g id conges ion, ou pu limi a ions in sola p ojec s, inancial di icul ies
o p ojec owne s and a shi in go e nmen p io i ies owa ds onsho e and o sho e wind
ene gy (Wan enaa , 2023).
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Table 8. Rep esen a i e quo es
Dimensions and
Concep ual
ca ego ies
Empi ical
indings Rep esen a i e quo es In e iewees
Ba ie s o issue s
The absence o
in e media ies
Lack o
independen
a ing agencies
Lack o
independen audi
i ms
Lack o
ce i ica ion
agencies
“The ole played by unde w i e is no su icien o
he issuance o G een bond [. . .] The e has o be he
in ol emen o o he in e media ies du ing he g een
bond issuance p ocess, such as a ing agencies, audi
i ms, epu able agencies o ce i ica ion ollowing o
lag a bond as g een. Bu hese a e no ye a ailable in
Vie nam”
B1
Incomple e
legal amewo k
Lack o g een
axonomy
No speci ic
echnical
guidance o
g een bond
issuance
No p ice
mechanism o
g een p ojec s
“While o he s pee coun ies in ASEAN ha e
de eloped hei own na ional g een classi ica ion
sys em, Vie nam is s ill in he p ocess o o mula ing
i s own Na ional G een Taxonomy. Wi hou his
sys em in place, he e is a high conce n om in es o s
on he po en ial g een wash, which educe he issue s’
mo i a ion o mobilise und ia his channel”
“Issue s also a e s ill unclea abou he de ail p ocess
and equi emen s o issue g een bonds. Fo a new
inancial ins umen s, i is necessa y o p o ide de ail
guidance o help he issue s be amilia and s eamline
he guidance o encou age hei engagemen ”
“The in es men in g een p ojec s in Vie nam also
aces some inancial issues due o he lack o
go e nmen p icing mechanisms (e.g. wind, sola ,
biomass) [. . .] o a s able sou ce o suppo o
encou age g een p ojec s and enewable ene gy
ini ia i es”
A1
High issuance
cos
The need o a
g een bond
ce i ica e
Ongoing expenses
“The suppo om Go e nmen on ela ed ees such
as egis a ion, lis ing managemen , and ansac ions
a e no enough o o se he issuance cos o g een
bonds [. . .] The issuance cos o G een bond is highe
han ha o egula bonds due o addi ional expenses
incu ed by issue s o ob aining a g een bond
ce i ica e, in o ma ion disclosu e and epo ing. All
hese addi ional laye s a e o mi iga e he isk o g een
wash”
“Addi ionally, managing he alloca ion o p oceeds
om g een bonds h oughou he p ojec ’s li ecycle
adds o hese cos s”
A3
Unde -
de eloped
co po a e bond
ma ke
No cen alized
bond ading loo
P i a e issuance
dominance
“The unde de eloped g een bond ma ke is no he
ypical issue o g een bond only bu lies in he o e all
co po a e bond ma ke in Vie nam [. . .] The e a e a
numbe o issues ha need o be ixed o he whole
co po a e bond ma ke , including he absence o
cen alized ading loo , and he o e concen a ion
on p i a e issuance a he han public issuance. These
uel in he ine icien seconda y ma ke o co po a e
bond in Vie nam”
A6
(con inued )
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Table 8. Con inued
Dimensions and
Concep ual
ca ego ies
Empi ical
indings Rep esen a i e quo es In e iewees
Speci ic ba ie s
o FIs
Disad an age o
G een bond
compa ed wi h
G een loan
“Financial ins i u ions ha e easie access o g een
loan in compa ison wi h g een bond and he ou comes
a e simila , wi h lowe ela ed expenses. Tha is why
g een loan is an ob ious choice o FI a his s age”
A4
Incomple e legal
amewo k
speci ically
designed o FI
G een bond
issuance
“In con as o businesses, inancial ins i u ions ace
se e al unique challenges o con ol he u ilisa ion o
capi al mobilised om g een bond issuance [. . .]
Financial ins i u ions issuing G een bond canno ely
on a single, speci ic g een p ojec bu ins ead depend
on a di e se po olio. The disbu semen o unds o
hese g een p ojec s is dependen on he ac ual
equi emen s o cus ome s. The changes in inancial
needs o g een p ojec s po en ially esul in changes
o dis up ions o he p ojec lis du ing
implemen a ion”
“The e is a need o clea and ailo ed guidance o
inancial ins i u ions issuing g een bonds,
s eamlining capi al managemen and alloca ion
p ocesses”
A5
A ac i eness o in es o s
Low in es o s’
in e es due o
low yield
Lowe yield han
comme cial eal
es a e bonds
“Cu en ly comme cial eal es a e bonds a e
dominance in he co po a e bond ma ke in Vie nam
wi h mo e a ac i e in e es a e”
D1
Low awa eness
o esponsible
in es men in
domes ic
ma ke
Lack o domes ic
awa eness
The majo i y o
demand
o igina ed om
o eign in es o s
and o ganiza ions
“Bo h in es o s and issue s in he domes ic ma ke
exhibi a lack o awa eness ega ding esponsible
in es men [. . .] The majo i y o demand o igina ed
om o eign in es o s and o ganiza ions”
C1
High inancial
isks o G een
p ojec s
Requi e
signi ican
esou ces.
Ex ended payback
pe iods.
Impac ed by
Go e nmen
p icing
mechanisms
“B oadly speaking, g een p ojec s ypically equi e
subs an ial esou ces, ha e long payback pe iods, and
can be subjec o go e nmen p icing mechanisms,
such as hose ela ed o wind powe , sola powe , and
biomass powe pu chase p ices [. . .] High inancial
isks a e expec ed o g een p ojec s, especially in
Vie nam ma ke ”
E3
Unclea G een
Bonds demand
Challenges in
Assessing
Demand o
G een Bonds in
he Domes ic
Ma ke due o lack
o p oduc
o e ings
“The domes ic ma ke lacks di e se p oduc o e ings
o compa ison wi h s anda d bonds, p ima ily due o
he ela i ely limi ed popula i y o g een bond
ading. The e o e, i is challenging o accu a ely
gauge he ma ke ’s demand o g een bonds”
E2
(con inued )
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Howe e , he inding o he high g een bond issuance cos in Vie nam is agains he
conclusion om esea ch conduc ed by Gian a e and Pe i (2019) who sugges ed ha e en
hough he issuance o G een bonds in ol es g een ce i ica ion cos and o he addi ional cos s
o moni o ing and epo ing in he use o he p oceeds, he G eenium mo e han o se s he
addi ional cos s o ge he g een label o a ing. This could be explained by he ac ha in
Vie nam, g een p ojec s ep esen high inancial isks esul ing om subs an ial inancial
esou ces, ex ended payback pe iods and go e nmen p icing mechanisms ela ed o
enewable ene gy sou ces. In ac , he inancial heal h o se e al companies ope a ing in
enewable ene gy in Vie nam is unde close wa ch gi en he ecen inancial losses incu ed
and high le e age (VnExp ess, 2023; The Saigon Times, 2023). This high isk should be
co e ed by he highe in e es o e ed o in es o s, which elimina es he G eenium o hese
bonds in Vie nam.
The unde de eloped co po a e bond ma ke in Vie nam is e idenced by he lack o
anspa ency and in o ma ion disclosu e, he absence o co po a e bond c edi a ing ac i i ies
(Nguyen and Vu, 2021), he absence o a cen alised ading pla o m and he p e alence o
p i a ely issued bonds (Ra ings, 2021). Meanwhile, speci ic ba ie s o FIs has led o he use
o mo e g een loans, a mo e accessible inancing op ion, ins ead o g een bond. Fo example,
in ea ly 2019 VPBank coo dina ed wi h In e na ional Finance Co po a ion (IFC) o de elop a
plan o he issuance o g een bonds in he in e na ional ma ke wi h a alue o 120 million
USD. Howe e , in he end, he bank has swi ched o a g een loan mobilisa ion om
in e na ional pa ne s due o he complex equi emen o he go e nance sys em, challenges
s anda dising policy amewo ks and ope a ing p ocedu es (VPBank, 2022).
P oposi ion 2. The a ac i eness o g een bond as an in es men channel o in es o s
needs o be aised. Cu en ly, g een bonds a e no highly appealing due o:
ela i ely lowe yields, highe associa ed isks, limi ed awa eness o
esponsible in es men wi hin he domes ic ma ke and a sca ci y o
di e se in es men p oduc s o po en ial in es o s.
Table 8. Con inued
Dimensions and
Concep ual
ca ego ies
Empi ical
indings Rep esen a i e quo es In e iewees
Po en ials o g een bond ma ke in Vie nam
High demand
o inancing
g een p ojec s
High demand o
inancing g een
p ojec s o
achie e ne ze o
a ge
“To mee ne -ze o goal, Vie nam will need signi ican
inancial esou ces o und o g een p ojec s ill 2050,
in which a majo pa is om p i a e sec o ”
E1
Suppo om
he go e nmen
o Vie nam
G een bond will
be he p io i y o
he Go e nmen
o Vie nam
“The Go e nmen o Vie nam has ecognized he
signi icance o g een bonds and p io i ises hei
de elopmen [. . .] Since 2012, he Vie namese
go e nmen has been ac i ely p omo ing sus ainable
inance”
A2
P og essi e
legal amewo k
Legal amewo k
o g een bonds
has been
consis en ly
imp o ed
“Al hough he e a e ob ious gaps in legal amewo k
[. . .], i is wo h p aising ha since 2012, he
Vie namese go e nmen has s eadily enhanced he
legal amewo k su ounding g een bonds”
“I is expec ed ha he cu en gaps in Vie nam legal
amewo k o g een bond will be g adually illed
soon”
A1
Sou ce(s): Table by au ho s
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The pe cep ion o he low yield o G een bonds in Vie nam is unde s andable gi en ha he
mos well-known g een bond issuance was he one by Elec ici y Finance Join S ock
Company (EVNFinance), which is he only in e na ionally e i ied g een bonds in Vie nam so
a . This bond only o e s an in e es a e o 6.7% pe yea (T an, T.T.H. (2023), in compa ison
wi h he a e age issuing a e o eal es a e bonds o 10.6% pe yea , wi h a ious issue s in
Ma ch 2023 o e ed 12–13% pe yea s (VBMA, 2023). E en hough some o he g een bonds
o e mo e a ac i e yields (e.g. wind ene gy companies o e annual coupons anging om 9
o 10.75% in he i s ew yea s and hen u n o loa ing a es (The Saigon Times, 2023), such
yields canno compa e wi h he one o e ed by co po a e eal es a e bonds).
Rega ding he isks associa ed wi h g een p ojec in es men , in 2022, nume ous enewable
ene gy i ms in Vie nam expe ienced inancial losses a ibu able o shi s in elec ici y
p ocu emen policies and he p olonged epe cussions o he COVID-19 pandemic (The
In es o , 2023). Fu he mo e, se e al companies ope a ing in he wind powe sec o ha e
incu ed losses as a esul o issuing bonds wi h inc eased in e es a es. No ably, T ung Nam
Dak Lak 1 Wind Powe JSC epo ed a subs an ial loss o VND 860 billion (equi alen o USD
36.7 million) in 2022, compa ed o he ne p o i o only o e VND 1 billion in 2021
(VnExp ess, 2023; The Saigon Times, 2023). The majo i y o wind a ms expe iencing
inancial losses p ocu ed unds om he co po a e bond ma ke and hese companies a e
g appling wi h ele a ed inancial le e age and nega i e cash low, esul ing in a signi ican
bu den on hem wi h deb - o-equi y a io su ging o i e o six imes highe han hei equi y
(The Saigon Times, 2023).
The limi ed public awa eness o g een bond in es men in Vie nam hinde ing i s
a ac i eness o in es o s is consis en wi h he indings om he s udy by T an (2023). In
addi ion, he sca ci y o in es men p oduc s is ep esen ed by he limi ed numbe o
ou s anding g een bonds in Vie nam’s domes ic co po a e ma ke . No ably, due o a ious
ba ie s acing issue s, some companies op ed o in e na ional issuance ins ead o domes ic
issuance (e.g. In 2021, BIM Land success ully issued i s inaugu al USD bond and had i lis ed
on he Singapo e Exchange (The Saigon Times, 2021).
P oposi ion 3. The G een Bond Ma ke in Vie nam possesses subs an ial po en ial o
u he g ow h. This po en ial needs o be unlocked gi en he inancing
equi ed o mee he ambi ious a ge o Ne -ze o by 2050. Key enable s
include suppo and p omo ion om he Vie namese Go e nmen and he
con inuing enhancemen o he legal amewo k su ounding g een bonds.
The need o ill he g een inance gap is suppo ed by he es ima ion by McKinsey’s (2022)
epo which sugges s ha he ne -ze o pa hway in Vie nam equi es a o al in es men o
app oxima ely USD 30 billion pe yea . This unde sco es he impe a i e ole ha ins umen s
such as g een bonds can play in mobilising p i a e in es men o g een p ojec s.
Rega ding legal aspec s, since 2012, he legal amewo k in Vie nam o he g een bond has
been con inually de eloped and enhanced by he ollowing legal documen s: (1) Na ional
S a egy on G een G ow h: Decision No. 1393/QD-TTg da ed Sep embe 25, 2012; (2)
Na ional Ac ion Plan on G een G ow h: Decision No. 403/QD-TTg da ed Ma ch 20, 2014; (3)
Ac ion plan o he implemen a ion o he Pa is Ag eemen on Clima e Change: Decision No.
2053/QD-TTg da ed Oc obe 28, 2016 and (4) App o al o he bond ma ke de elopmen
oadmap du ing 2017–2020, wi h a ision o 2030: Decision No. 1191/QD-TTg da ed Augus
14, 2017. These legisla i e ad ancemen s se e as a s u dy ounda ion, o e ing cla i y and
guidance o bo h o ganisa ions and indi iduals in e es ed in engaging in g een bond
in es men s. The cu en gap in legal amewo k is ully acknowledged by he Vie namese
Go e nmen and con inuous e o s ha e been made o add ess his issue. No ably, in May
2022, MoNRE and SBV joined o ces wi h IFC o c a and pu in o ope a ion a policy and
egula o y amewo k. Ini ially, he amewo k concen a es on g een p ocu emen , g een
axonomy and was e managemen , wi h he o e a ching goal o ca alyzing p i a e sec o
engagemen in ad ancing he na ion’s clima e objec i es and os e ing sus ainable g ow h.
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Besides s eamlining he legal amewo k, he suppo om he Vie namese Go e nmen
was also e idenced by he incen i es o a ious aspec s o g een bond issuance unde he
guidelines ou lined in Ci cula No. 101/TT-BTC, bo h g een bond issue s and in es o s a e
eligible o a 50% discoun on a ious se ice ees. These discoun ed se ices include
egis a ion o lis ing, lis ing managemen , ansac ion- ela ed cha ges, secu i ies egis a ion
ees, pa ial cancella ion o secu i ies egis a ion and secu i ies deposi o y ees.
6. Conclusions
This esea ch se es as an examina ion o he de elopmen o Vie nam’s g een bond ma ke ,
unco e ing he challenges ha impede i s po en ial g ow h. These challenges de e issue s
om con ibu ing mo e o ma ke expansion and discou age po en ial in es o s om seizing
hese in es men oppo uni ies. Despi e he ecognised e ec i eness o g een bonds in
b idging he g een inance gap, as highligh ed by bene i s such as G eenium (as sugges ed by
Aglia di and Aglia di, 2019) and ad an ages o sha eholde s o issue s (as sugges ed by Tang
and Zhang, 2020), Vie nam’s g een bond ma ke emains ela i ely unde de eloped compa ed
o i s ASEAN coun e pa s. By assessing he pe cep ions and expe iences o ma ke
pa icipan s, his s udy sheds ligh on he exis ing ba ie s o issue s, he appeal o g een bonds
as an in es men a enue o in es o s and he po en ial expansion o Vie nam’s g een bond
ma ke . Consequen ly, his esea ch con ibu es bo h heo e ically and p ac ically o he ield.
6.1 Con ibu ion
Rela ed s udies ha e explo ed challenges acing he global g een bond ma ke (Desch y e
and Ma iz, 2020) and egional dynamics in de eloping coun ies (Banga, 2018; Nguyen e al.,
2022); howe e , esea ch speci ically ocused on he Vie nam ma ke has been limi ed (Tu
e al., 2020; T an, 2023). Fu he mo e, none o hese s udies employed a quali a i e app oach
in ol ing indi idual in e iews, which enables di ec engagemen wi h indus y expe s,
o e ing aluable insigh s, in-dep h pe spec i es and ich eal-wo ld obse a ions. The e o e,
his esea ch ga he s comp ehensi e and de ailed insigh s om a di e se ange o ma ke
pa icipan s, including issue s, in e media ies, in es o s and o he s akeholde s.
This s udy con ibu es by explo ing he de elopmen o Vie nam’s g een bond ma ke , p o iding
aluable insigh s o egula o s and ma ke pa icipan s. I s goal is o deepen unde s anding o he
cu en ma ke landscape and he challenges acing he Vie namese g een bond sec o . These
include: wha a e he ba ie s acing po en ial g een bond issue s? How can g een bonds become
mo e appealing o in es o s? Wha would enable o g een bond ma ke o g ow u he ? By
ga he ing di e se pe spec i es om key s akeholde s – including issue s, in e media ies, in es o s
and o he s – he esea ch ensu es a comp ehensi e iew ha cap u es all c i ical aspec s.
Based on hese insigh s, he s udy o e s se e al ecommenda ions o o e come ba ie s o
issue s, boos he a ac i eness o g een bonds o in es o s and suppo ma ke g ow h. These
include: (1) es ablishing key in e media ies such as independen a ing agencies and
ce i ica ion bodies; (2) s eng hening he legal amewo k h ough a na ional g een axonomy,
echnical guidelines o g een bond issuance and a s able p icing mechanism o g een
p ojec s; (3) imp o ing he co po a e bond ma ke by c ea ing a cen alised ading pla o m;
(4) inc easing go e nmen inancial suppo and (5) p omo ing public awa eness o
esponsible in es men h ough educa ion. Gi en he Vie namese go e nmen ’s p oac i e
e o s o comba clima e change – highligh ed by i s goal o eaching ne -ze o emissions by
2050 and ongoing legal e o ms since 2012 – along wi h g owing go e nmen suppo , hese
cu en challenges a e seen as empo a y hu dles. Once add essed, he g een bond ma ke in
Vie nam is expec ed o g ow subs an ially.
The esea ch indings on Vie nam’s g een bond ma ke ca y impo an implica ions o o he
Sou heas Asian coun ies like Laos, Cambodia, Myanma and beyond. By pinpoin ing and
ackling he challenges aced by a de eloping coun y in g owing i s g een bond ma ke , his s udy
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p o ides a use ul model o simila economies aiming o de elop sus ainable inance amewo ks.
Policymake s in hese egions can le e age Vie nam’s expe ience o design e ec i e s a egies
ha encou age g een bond issuance and in es men , he eby suppo ing global sus ainabili y
objec i es and speeding up he adop ion o en i onmen ally esponsible inancial ools.
6.2 Challenges and u u e esea ch sugges ions
Despi e he comp ehensi e na u e o his s udy, ce ain challenges mus be acknowledged.
Fi s ly, he sample o ma ke pa icipan s mainly comp ises issue s, p ima ily due o he limi ed
public awa eness o g een in es men . Consequen ly, issue s ep esen he s akeholde g oup
wi h he mos ex ensi e expe ise and knowledge ega ding g een bonds in Vie nam. While he
s udy del es in o he a ac i eness o his in es men oppo uni y, u he esea ch ha su eys
indi idual in es o s would be especially in e es ing. Howe e , gi en he cu en low ma ke
awa eness and he limi ed a ailabili y o g een in es men ins umen s, i is ad isable o
conside such su eys in he u u e when g een bonds become mo e p e alen in Vie nam.
Finally, al hough he esea ch encompasses a ious ca ego y o ma ke pa icipan s (issue s,
in es o s, in e media ies and o he suppo ing se ices), i would be ad an ageous o u he
esea ch o include he pe spec i es o egula o s. Hence, i is ecommended o explo e he
challenges egula o s ace in enhancing he legal amewo k, es ablishing in e media ies o he
g een bond ma ke and os e ing he g ow h o he seconda y ma ke o co po a e bonds.
In addi ion he e is scope o quan i a i e esea ch o es ima e he impac o mi iga ing
pe cei ed obs acles on he expansion o Vie nam’s g een bond ma ke , d awing upon da a
om simila coun ies. Fo example, quan i ying he ela ionship be ween egula o y
en i onmen wi h he g ow h in olume o g een bond ma ke in he ASEAN o d aw a o ecas
o he Vie nam ma ke . This could in ol e quan i ying he co ela ion be ween he egula o y
amewo k and he g ow h o he g een bond ma ke wi hin he ASEAN egion, hus enabling
he o mula ion o p edic i e models o he Vie namese ma ke . By examining how egula o y
changes ha e in luenced he de elopmen o g een bonds in pee coun ies, such esea ch can
p o ide insigh s in o po en ial s a egies and policies ha Vie nam could adop o os e he
g ow h o i s own g een bond ma ke and align i s ajec o y wi h egional ends.
6.3 Policy implica ions o egula o s
The indings highligh se e al c i ical a eas whe e egula o y in e en ion can acili a e he
g ow h o Vie nam’s g een bond ma ke :
(1) I is impe a i e o de elop a suppo i e ma ke in as uc u e, including independen
second-pa y opinion p o ide s, c edi a ing agencies and g een ce i ie s, o enhance
anspa ency and c edibili y.
(2) The legal amewo k should be s eng hened h ough he adop ion o a na ional g een
axonomy and clea issuance guidelines aligned wi h in e na ional s anda ds.
(3) Fu he inancial incen i es, such as subsidies o ce i ica ion cos s and ax bene i s,
a e needed o o se he highe issuance cos s o g een bonds.
(4) B oade e o ms o imp o e anspa ency, disclosu e and c edi a ing in he co po a e
bond ma ke will bene i g een bond de elopmen .
(5) Tailo ed egula o y guidance should be in oduced o inancial ins i u ions issuing
g een bonds ac oss di e si ied g een p ojec s.
(6) Awa eness- aising campaigns and capaci y-building ini ia i es a e essen ial o expand
domes ic in es o pa icipa ion.
(7) Policy ools such as isk gua an ees and public–p i a e inancing models should be
conside ed o mi iga e he isks associa ed wi h g een in es men s, pa icula ly in
enewable ene gy.
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A comp ehensi e egula o y app oach, combining s uc u al e o ms, capaci y building,
inancial incen i es and sus ained policy signaling, is essen ial o unlock he ull po en ial o
Vie nam’s g een bond ma ke and suppo i s ansi ion owa d a low-ca bon, clima e- esilien
economy.
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ac i i ies_en#legisla ion
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educ ion, esea ch inds”, a ailable a : h ps://join - esea ch-cen e.ec.eu opa.eu/j c-news-and-
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Asian Jou nal o
Economics and
Banking
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Downloaded om h p://www.eme ald.com/ajeb/a icle-pd /9/2/162/10047872/ajeb-05-2025-0045en.pd by ZBW Ge man Na ional Lib a y o Economics use on 16 Decembe 2025
