Wind power plant project in Thuan Bac district, Ninh Thuan province. Photo: VNA

Rising capital demand for green energy

Issued in late 2025, the resolution on ensuring national energy security by 2030, with a vision to 2045, charts a clear path for the development of the energy industry in the new period. It not only emphasises the requirement for energy security but also sets the stage for a competitive electricity market and stronger mobilisation of funding from private investors.  

Under this push, the resolution goes full ecosystem mode, blowing past traditional energy sources and ramping up renewables, clean energy, hydrogen, green ammonia, and even small modular nuclear power. The move lines up perfectly with Vietnam’s net-zero ambitions and marks a major shake-up in how energy projects will be funded.  

Da Mi solar power plant with capacity of 47.5MWp is built on Da Mi reservoir, Ham Thuan Bac district, Binh Thuan province. Photo: VNA

Against this backdrop, capital demand for energy projects and green transition is set to explode, creating new room for the domestic capital market. Energy and green bonds, along with climate investment funds, are predicted to surge as Vietnam becomes more integrated into the global financial system and races to meet its emission reduction goals.

Energy security is becoming more closely linked to the development of capital markets, with measures like issuing bonds, selling shares in state energy companies, and boosting green credit. This places the financial market at the heart of funding the energy transition and driving long-term sustainable growth.

To accelerate green finance, improving the policy and legal framework remains the first and foremost requirement.

According to Chairman of the Board of Saigon Ratings Phung Xuan Minh, the Government should bring into play its guiding role by refining mechanisms, pushing green financial products such as green bonds, green equities, and green credit, and rolling out targeted incentives to spur investment in green sectors.

An electric bus on Nguyen Trai street. Photo: VNA

At the same time, he added, establishing a unified green finance taxonomy is considered an urgent task. Many credit and bond issuances still rely on international standards while domestic definitions and criteria remain incomplete. A consistent framework is needed to help issuers bring green products to the market more efficiently and better turn policy into practice.

Reinforcing the foundation for green finance

Minh also noted that improving awareness and capacity for green transition across the entire system is essential. Enterprises need to align their strategies with environmental, social, and governance (ESG) standards and proactively design capital raising plans, including ESG bond issuance. Enhancing governance capacity and complying with environmental rules from the outset will lift the quality and sustainability of investments.

In the financial system, the State Bank of Vietnam and credit institutions now have a clearer mandate to finalise the legal framework and promote green credit. By clarifying regulations and offering incentives for banks to fund green projects, capital can be directed toward key priority areas.

Developing a professional, long-term, and socially responsible investor base is equally vital to improving market quality. Commercial banks are expected not only to provide loans but also to jump in as investors in the green bond market, while embedding environmental and social risk management into their lending practices.

For foreign capital to flow at scale, information transparency remains a key condition. Besides, enterprises should actively access domestic and international capital sources and adopt sustainability-oriented governance to meet increasingly stringent requirements.

Enhancing cooperation with global partners, accessing good practices and perfecting market indices will also be useful for attracting green funding, especially when Vietnam’s stock market status is expected to be upgraded soon, Minh said.

However, he admitted that Vietnam’s green finance market is still in its infancy, with certain challenges related to implementation capacity and the assessment and certification system. Completing these foundational elements will be decisive in speeding the shift toward a green and low-carbon economy in the coming years./.