Group 9

DEVELOPEMENT OF
GREEN BANKING
Evidence from Vietnam
commercial banks
 Members

Phạm Hồng Ngát Thân Thị Khánh Linh Nguyễn Thị Thanh Hương
23A7510093 23A7510078 23A7510057

Nguyễn Lê Duy Đặng Thu Uyên Nông Thế Duyệt

23A7510023 23A7510168 23A7510025
 INTRODUCTION

LITERATURE
TABLE OF REVIEW
GREEN BANKING IN VIETNAM
CONTENT
SOLUTIONS

CONCLUSION
Green
Banking
 INTRODUCTION
Green banking is a bank that builds a sustainable business
strategy on providing environment-friendly banking services

Green loans Green savings accounts

Carbon finance

Green mortgages

Advisory services

Green credit cards Green Banking Online banking

 THE DEVELOPMENT OF GREEN BANKING IN VIETNAM
Vietnam
implemented green Green banking
Vietnam's outstanding
banking programs received even more
credit debt for green
Sacombank issued an attention from the
projects reached more
But don’t have a policy Environmental Policy State and other
than 474 trillion VND
to ensure with a list of 12 commercial banks
(mainly focusing on the
environmental safety industries excluded (With issuance of Decision fields of renewable energy and
for credit activities from granting credit No. 1604/QD-NHNN ) clean energy)

Before 2015 2012 2018 30/6/2022

3 months after 2016 12/2021

implementation
Sacombank, About 25 commercial
LPBank is one of the TechcomBank, and banks were
leading banks in this VietinBank implementing green
program developed internal credit packages
policies on
environmental and
social risk management
 SIGNIFICANCE OF THE RESEARCH

Study on the development of Green banking: Evidence from the

Vietnam commercial banks.

Analyze the current situation, challenges, and achievement of green

banking implementation at commercial banks in Vietnam.

Propose some recommendations and solutions to build a green bank

as an initiative for sustainable development at Vietnamese
commercial banks.
 LITERATURE
1 Review some research on green banking in the globe
REVIEW
GREEN BANKING AND SUSTAINABILITY – A REVIEW GREEN BANKING PRACTICES – A REVIEW
Ajaz Akbar Mir, & Aijaz Ahmad Bhat (2022) Vikis Nath, Nitin Nayak & Ankit Goel (2014)

The study identifies specific areas (green

The study shows that key strategies for Indian
banking) where banks can advance toward a
banks seeking to establish a global presence
greener and more sustainable economy.
and fulfill their responsibilities as global
Furthermore, it assists the banking industry in
corporate citizens include transitioning to
recognizing developmental opportunities to
paperless, online and mobile banking, adopting
enhance social satisfaction and stakeholder
eco-friendly practices in infrastructure through
contentment within their operational domains.
LEED certified green buildings, investing in low-
In the context of India, these practices are
carbon technologies, developing sustainable
currently in a developmental phase and wield
products, and incorporating environmental
considerable influence on sustainable
standards in lending and financing principles.
development.
 LITERATURE
2 Review a research on green banking in Vietnam
REVIEW
GREEN BANKING DEVELOPMENT: A CASE STUDY OF VIETNAM
Nguyen Ha Bang, Nga Phan Thi Hang, Le Trung Dao (2023)
The author showed the global trend of adopting a
green economy for sustainable development and
highlighted the crucial role of green banking in this
strategy. The factors positively influencing Green
Banking Development include banking technology,
financial capacity, marketing strategy, quality of
human resources, risk management, supporting
policies, legal framework, and environmental policy.
The research also emphasizes the increasing
proportion of green credit in Vietnam, showcasing a
commitment to environment-friendly lending
practices.
LIMITATION of previous research
Most of the above research focuses
on understanding the potential of
implementing green banking in the
banking sector. The factors affecting
the development are paid more
attention to while the current
situation of this strategy in each
commercial bank as well as the
policies applied to support the green
banking goal.
 OVERVIEW
• The Decision No.1640/QD-NHNN approving the Scheme on the green

GREEN BANKING bank development in Vietnam of the State bank of Vietnam

IN VIETNAM • Vietnamese enterprises are primarily executing or preparing to adopt

green investment projects and activities related to trash, garbage, and exhaust
treatment; energy conservation; environmental protection; and renewable
energy

• Vietnamese commercial banks focus their business model on the

objective of turning into a green bank within the system
Eg: Electronic banking is rapidly expanding

• There are still a lot of gaps in the way banks manage social and environmental
risks

Green bank development, effective management on social and

environmental risks, better control on credit risk and collateral risk of
loans associated with society and environment is considered as a
competitive advantage and a chance for growth in the modern era
 GREEN BANKING IN VIETNAM

Agribank has been focusing on

prioritizing capital sources, effectively
expanding loans for projects,
production and business development
programs in agricultural and rural
areas, especially programs and projects
that create added value, clean energy,
and high-tech agriculture
Since 2019, Agribank has accelerated
The green bonds are in the process
the development of internet banking
of research and development before
called Agribank Ebanking with many
entering into the financial market
green services via online platforms.
 GREEN BANKING IN VIETNAM
BIDV’s green banking
campaigns cooperating with
the authorities to develop
sustainable finance as well
as cooperating with the
international organizations
to provide green capital to
the green fields
Build a Green Bond Issuance
Framework
Improving environmental and
social risk management in
credit granting by pioneering
Committed to creating favorable
the development of a
conditions and becoming a bridge for
"Sustainable Loan Framework"
businesses to approach and transform
their business activities towards
sustainability
 ACHIEVEMENTS

Positive changes in green credit with increasing attention and the rising
investment limits

Numerous financial institutions have created their own approaches to managing social
and environmental risks

Commercial banks make efforts not only to improve their loans to affect other businesses
operating environmentally, but also to transform their internal operations themselves

Eg: paperless campaign, replace energy-efficient technology in buildings

 CHALLENGES

Applying green credit policies will increase the bank's expenses

The capacity to evaluate and appraise green investment projects is still limited

cultural factors and consumption habits of the Vietnamese people

SOLUTIONS
For developing Green banking in Vietnam
1The government needs to provide a consistent
legislative framework for promoting green
banking growth
2 Continue to study and apply solutions
which create motivation for commercial
banks to develop green banking
3
Improve expertise and awareness of the
bank's responsibilities in implementing the
green growth plan of the economy
4
Innovate operation activities, services and
products of commercial banks
5
Develop green financial markets synchronously
 CONCLUSION
• The achievements of pioneering banks underscore the feasibility of sustainable practices, while challenges
offer insights for targeted interventions.

• Some potential solutions and recommendations for the mentioned challenges are proposed which mainly
focus on heightening awareness and education, alongside regulatory support and collaborative efforts
involving financial institutions, governmental bodies, and non-governmental organizations.

• The evolving nature of green banking in Vietnam reflects not only environmental stewardship but also the
transformative potential of financial institutions in shaping a sustainable future

Limitation
The case studies were chosen based on the conditions of banks’ scales
and reputations not representing all of Vietnam’s commercial banks

Recommendation
• Analyze more commercial banks which have smaller scales to get an
objective view of the situation of green banking in the country

• further exploration about a more resilient and environmentally

responsible banking sector in Vietnam.
THANK YOU
For your attention !