‘There is no shortage of capital, just a lack of green projects that are attractive enough’

According to the World Bank’s Country Climate and Development Report (CCDR), by 2040, Vietnam needs about 368 billion USD in additional investment capital to implement climate change adaptation and emissions reduction goals. Half of this is expected to come from the private sector and international investors.

At the Vietnam Green Finance Conference 2026 on August 6, Mr. Paul Xavier, an expert from the International Finance Corporation (IFC), affirmed that international investors do not lack capital for green transformation.

“What investors look for are markets with a clear green classification system, transparent data and a well-prepared project portfolio,” he said.

Mr. Nguyen Quang Thuan, Chairman and General Director of FiinGroup, also said that the reason why many green projects have difficulty accessing capital lies in the economic attractiveness and ability to arrange finance of the project itself. “Project structures in Vietnam often do not suit the tastes of international investors,” Mr. Thuan said.

According to him, many projects are large-scale but lack a systematic financial structure. Enterprises have also not received support from consulting units with enough capacity and practical experience to make the project feasible in the eyes of foreign investors.

This bottleneck is also shown in infrastructure projects such as metros, highways or water supply and drainage systems, when the project design has not kept up with international requirements.

To increase the ability to absorb capital flows, Mr. Thuan said that the market first needs transparent criteria for investors to evaluate projects, while limiting the risk of “greenwashing”.

In Vietnam, Mr. Vo Hoang Hai, Deputy General Director of Nam A Bank (Nam A Bank), estimates that nearly 90% of domestic green capital is disbursed through intermediary channels, which are commercial banks. The banking industry, therefore, needs to take a pioneering role to establish and apply a common language on green transition.

At the seminar, Mr. Nguyen Huu Huan, Vice Chairman of the Vietnam International Financial Center Executive Agency in Ho Chi Minh City (VIFC-HCMC), also shared his opinion that what the market needs is not only more committed capital but more importantly, more projects that meet standards to mobilize international capital.

VIFC-HCMC is aiming to build a green capital transformation center, connecting project preparation process, financial structure, data, risk mitigation mechanisms, impact measurement and investors. The goal is to transform sustainable development projects into assets qualified to mobilize capital in the international market.

In addition, FiinGroup Chairman commented that Vietnam needs to develop financial products that are standardized and widely issued, instead of relying mainly on individual transactions.

He also proposed tax support policies for businesses and investors, allowing the application of international law to appropriate transactions, building a controlled testing mechanism for new products and ensuring green financial products are economically feasible.

From the bank’s side, Mr. Vo Hoang Hai said that this bank has mobilized more than 350 million USD in green capital from international organizations. Currently, this bank applies interest rates one percentage point lower than usual for customers who meet environmental, social and governance (ESG) criteria.

However, the deputy general director of this bank also admitted that these incentives are sometimes not enough to offset the costs businesses have to spend to achieve certifications or implement the green transformation process.

Therefore, Deputy General Director of Nam A Bank proposed that there should be more practical macro policies such as income tax exemption for green bonds, incentives for securities depository fees or shortening the processing time of administrative documents, creating real motivation for investors to participate in the sustainable development ecosystem…

Commenting at the workshop, IFC experts noted that Vietnam should not only focus on green finance but also need to develop transition finance, suitable for the specific characteristics of an emerging economy.

“If green finance asks whether an activity is green or not, transitional finance asks whether the investment will help the economy move closer to its future low emissions target,” Mr. Xavier said.

According to experts, many industries that require large amounts of capital such as steel, cement, chemicals, agriculture and transportation, although in the group of large emitters, create jobs and contribute to economic growth. The solution is not to stop funding but to support them in the transition to reducing emissions through investments with clear roadmaps, measurable targets and transparent reporting mechanisms.