The handbook, developed by the SBV in partnership with the International Finance Corporation (IFC), based on international standards, provides credit institutions with practical guidance for building and operating effective risk management systems aligned with environmental, social, and governance (ESG) principles - an essential step toward sustainable finance in Viet Nam.

Many banks in Vietnam promote green credit for sustainable growth.

Deputy Governor of the SBV Dao Minh Tu said that the handbook is a practical reference document, helping credit institutions strengthen risk management according to best international practices, contributing to the effective implementation of the banking sector’s action plan to realise the national strategy on green growth.

Tu affirmed that green growth is no longer an option but a mandatory requirement, especially for developing countries like Viet Nam. Transforming the green economic model is the shortest path towards a sustainable and prosperous future.

In recent years, the banking sector has actively implemented measures to promote green finance, including the issuance of Directive No.03/CT-NHNN in 2015 on promoting green credit growth and risk management in credit granting activities.

Many commercial banks have developed green credit policies, prioritising capital for renewable energy projects, energy saving, and clean agriculture.

As of March 2025, 58 credit institutions had outstanding green loans, a sharp increase from 15 in 2017. The average growth rate of outstanding green loans in the 2017-2024 period reached over 21% per year, higher than the growth rate of outstanding loans for the economy.

A total of 57 credit institutions have conducted environmental and social risk assessments with outstanding loans of 3.62 quadrillion VND (140 billion USD), more than 15 times higher than 2017.

Many credit institutions have published sustainable development reports, increasing accountability and transparency, and further affirming their reputation and position.

However, the application of environmental and social risk management is still uneven among credit institutions, especially in the group of small- and medium-sized banks.

The SBV Deputy Governor said that due to the lack of specific guidance, expertise and assessment tools, many units are still confused in the implementation process.

Therefore, the newly published handbook is expected to fill this gap, helping banks easily access and apply ESMS according to a roadmap suitable to their capacity and operational characteristics.

In addition, strengthening the risk management will help banks limit funding for projects that are likely to have negative impacts on the environment and the community, thereby minimising legal, reputational and financial risks in the long term.

This is also an opportunity for banks to develop green credit products, issue green bonds, and access cheap international capital through climate finance programmes, Tu said.

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