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Vietnam plans green loan boost for eco-friendly projects

24 September 2025 | 06:36:00 AM

A fixed two per cent annual interest rate subsidy is proposed for the private enterprises, business households and individuals on loans for green, circular economy.

Going green just got easier. A fixed two per cent annual interest rate subsidy is being proposed for private enterprises, business households and individuals taking out loans for green, circular economy and environmental-social-governance (ESG) projects, according to a draft decree by the State Bank of Vietnam.

The decree, currently under review, is aimed at reducing capital costs, boosting cash flow and accelerating the country’s green transition towards the net-zero target by 2050.

Eligible borrowers include private enterprises, households and individuals undertaking projects verified as green, circular or compliant with ESG standards.

The Ministry of Agriculture and Environment will be responsible for certifying projects and publishing approved lists on its e-portal.

State Bank statistics show that green credit has expanded steadily, with outstanding loans reaching VND 730 trillion (USD 31 billion) as of the end of June, up 7.35 per cent from the end of 2024 and accounting for 4.3 per cent of total outstanding loans in the economy. Green credit growth averaged 21.2 per cent in the 2017-24 period, outpacing overall credit growth. 

Source: VNS

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