Private economic sector embraces new opportunities – Final part

Final part: The open green credit to enterprises

In the execution of Resolution No. 68-NQ/TW, dated May 4, 2025, issued by the Politburo regarding the development of the private economy (hereinafter referred to as Resolution No. 68-NQ/TW), businesses are increasingly seeking green credit capital to enhance technology, transition to sustainable production, and undertake environmentally responsible projects. 

Key driving force 

Mr. Nguyen Khanh Toan, Vice Chairman of the Binh Duong Renewable Energy Association, underscored that Resolution No. 68-NQ/TW is anticipated to foster institutional innovation, thereby unlocking social resources and enhancing transparency and efficiency in investment attraction. A central tenet of the resolution is the commitment to improving the investment and business environment, as well as safeguarding the legitimate property rights and business freedoms of individuals and enterprises. This serves as a foundation for private enterprises to gain greater confidence when engaging in long-term and high-risk investment sectors, particularly in energy.

Resolution No. 68-NQ/TW underscores the importance of science, technology, and innovation as pivotal drivers for enhancing productivity and competitiveness. Within the energy sector, this approach facilitates the implementation of digital transformation solutions, energy storage technologies, distributed and small-scale grids, as well as smart consumption management platforms. Additionally, a significant policy outlined in Resolution No. 68-NQ/TW promotes a shift in lending practices among credit institutions, moving from collateral-based assessments to evaluations grounded in cash flow. This shift holds particular significance for enterprises within the energy sector.

“However, for Resolution No. 68-NQ/TW to be effectively translated into tangible outcomes, the energy sector must enhance the internal capabilities of the private sector. Furthermore, green credit capital is essential for investing in technological advancements, enabling private enterprises to evolve beyond the role of mere “latecomers” and to emerge as a pivotal force in Vietnam's energy transition. At that juncture, green credit capital will serve as a strategic lever to propel the Vietnamese energy sector toward sustainable development goals and a just energy transition,” stated Mr. Nguyen Khanh Toan.

Mr. Nguyen Liem, Chairman of the Binh Duong Furniture Association, asserts that the green transformation within the wood industry not only enables businesses to adhere to regulations but also creates opportunities for accessing international capital and fostering sustainable development. It is imperative for businesses to swiftly enhance their understanding of sustainability, implement sustainable forest management practices, and advance technology to align with international standards.

Experts contend that green production is invariably linked to technological transformation, which entails reducing energy consumption and minimizing the reliance on human resources. Nevertheless, numerous Vietnamese enterprises encounter challenges in this transition. The readiness of domestic enterprises for digital transformation remains low, primarily due to the substantial initial investment required for technological upgrades, which many enterprises are unable to afford. Additionally, a significant number of enterprises lack a skilled workforce proficient in the necessary technologies to implement the transformation effectively. Furthermore, the production and human resource management capabilities of many enterprises are still inadequate, hindering their ability to undergo this transformation. These factors are crucial for enterprises seeking access to green credit capital for sustainable development.

Specific regulations are essential 

Experts assert that the Law on Environmental Protection has achieved a significant milestone by introducing two distinct provisions concerning green credit and green bonds. Additionally, specialized legal documents pertaining to credit and bonds have established unified regulations for these two financial instruments. Consequently, the existing legal framework is relatively comprehensive. However, for the market to function effectively, it remains essential to enhance the organizational system, policies, and coordination mechanisms among the involved parties. Enterprises must proactively engage with banks regarding their credit requirements and current circumstances, identify necessary actions, and simultaneously take initiative in greening their operations to access green credit sources.

Green credit facilitates businesses in obtaining preferential loans to invest in sustainable industries. However, Ms. Phan Le Diem Trang, Vice President of the Binh Duong Textile and Apparel Association, asserts, “In my view, the establishment of a comprehensive set of green criteria is essential for economic sectors and businesses to have a clear direction regarding the standards they must pursue to achieve green classification. This set of criteria serves as a foundation for the government to formulate policies aligned with an appropriate roadmap, while also offering guidance to the business community in developing strategies and plans to prepare their value chains for various green development objectives (ranging from input supply and production to market access and green capital acquisition). Furthermore, the introduction of a set of green criteria, which includes factors related to climate change (such as greenhouse gas emissions), will unequivocally reflect the Vietnamese Government's commitment to achieving Net Zero by 2050 to the international community.”

For textile and garment enterprises, Ms. Phan Le Diem Trang emphasized the necessity for companies to actively monitor the regulations of import markets, measure and report greenhouse gas emissions, and adopt green management and production practices aimed at resource conservation and the reduction of greenhouse gas emissions. Additionally, she urged enterprises to assess opportunities for transitioning to green products.

Reported by Tieu My – Anh Tuan – Translated by Vi Bao