Vietnam needs approximately $28 billion for green transition by 2030.

This information was provided by Deputy Minister of Finance Do Thanh Trung in response to a question at a dialogue session with leaders of central ministries and agencies on the afternoon of November 26th, within the framework of the First Autumn Economic Forum.

The dialogue aimed to discuss breakthrough solutions for digital development and green transformation, with experts expressing great interest in funding for Vietnam to achieve its dual transformation goals within the next 10 years.

Opening the dialogue session, Dr. Tran Du Lich, Chairman of the Advisory Council for the Implementation of Resolution 98, affirmed that the Party and Government clearly recognize that the new era is the era of green transformation and digital transformation.

The first problem is the confusion faced by businesses due to the lack of specific metrics for defining "green businesses" in order to access preferential funding. More importantly, the capital needed for transformation is enormous.

Mr. Tran Du Lich cited a report on the Ho Chi Minh City Green Transformation Project for the period 2026-2035 and a vision to 2050, conducted by the Ho Chi Minh City Institute for Development Research in collaboration with VinUni University, which shows that the city needs approximately 900.000 billion VND (equivalent to 34 billion USD) over the next 10 years. This means that, on average, the city needs about 4 billion USD per year to successfully transform into a green urban area.

"But where will the funding come from? How has the Ministry of Finance and the Government planned to support the green transformation process of localities, including Ho Chi Minh City?" Dr. Tran Du Lich asked.

In response to this question, Deputy Minister of Finance Do Thanh Trung stated that regarding the challenge of mobilizing financial resources for green transformation, according to updated reports, the roadmap to 2030 forecasts that Vietnam will need approximately 28 billion USD.

The Ministry of Finance, along with other ministries, sectors, and related agencies, has recently implemented numerous solutions to strengthen the mobilization and allocation of resources, focusing on three key areas.

Firstly, the plan aims to promote the green financial market, with corporate green bonds reaching $1,2 billion by 2024. Many large businesses continue to participate in this market, including corporations and banks such as BIDV and Vingroup.

Secondly, there is green credit. By the end of 2024, outstanding green credit reached VND 700 trillion, accounting for 6% of the total outstanding credit of the entire banking system and increasing by 25% compared to 2023.

"This positive growth shows that the financial and credit system is gradually expanding the capital available for environmentally friendly activities." Deputy Minister Do Thanh Trung commented.

Furthermore, the budget also plays a significant role through various mechanisms such as interest rate subsidies, direct investment, and public-private partnerships (PPP). Prioritizing public investment, the period 2026-2030 is projected to allocate over 8 trillion VND for green infrastructure and climate change adaptation.

Thirdly, we need to perfect the green government bond market to mobilize international resources.

Mr. Trung added that the Ministry of Finance is developing a financial and budget plan for the period 2026-2030, with a total projected need of over 8 trillion VND, including central and local budgets.

These resources will be focused on green transformation and sustainable development goals such as developing green and smart urban transportation, investing in environmental infrastructure, and responding to climate change.

Regarding the resources for green urban development in Ho Chi Minh City, Deputy Minister Do Thanh Trung stated that in the planned capital allocation for the period 2026-2030, Ho Chi Minh City is one of the localities allocated significant resources for key projects promoting green transportation, environmental protection, and climate change adaptation.

Regarding the green transformation roadmap for businesses, Deputy Minister of Finance Do Thanh Trung emphasized the urgent need to finalize the criteria for green businesses, in order to harmonize the national green growth goal with the actual capacity of the business community.

Previously, the Ministry of Finance advised on the issuance of a set of green growth criteria, comprising 72 criteria for assessing the level of greenness in various sectors, such as environment, transportation, logistics, etc. This set of criteria basically met international standards, including those of the EU.

However, to apply this directly to businesses, from production and business operations to capital mobilization, a specialized set of evaluation criteria for green businesses is needed. This is considered a crucial requirement to integrate the national green growth strategy into each business and make it an integral part of their operational processes.

To finalize this set of criteria, the Ministry of Finance is implementing two key tasks, including developing information collection forms to create a comprehensive database for accurately assessing the specific characteristics, scale, and capabilities of Vietnamese businesses in the context of green transformation.

Mr. Trung also acknowledged that the biggest challenge currently is finding a balance between the goal of green growth and the ability of businesses, especially small and medium-sized enterprises, to meet those goals. The Ministry of Finance is also finalizing a set of criteria specifically for businesses, which is expected to be issued soon to serve as a basis for designing appropriate support policies.