The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) has successfully issued 2 trillion VND worth of green bonds, the first of its kind, to support eco-friendly projects.

Vietnam needs a clear regulatory framework and solutions to promote the green finance market and encourage private capital flows into green fields, experts have said.

The Ministry of Finance is proposing amendments to the Law on Corporate Income Tax to encourage environmental protection and sustainable development.

Green bonds are an innovative tool for businesses to mobilise financing from the private sector such as banks, financial institutions, and especially foreign capital.

Vietnam needs to develop a strong domestic banking and financial sector that can provide a guaranteed funding base for decarbonising the oil economy, Kanni Wignaraja, UN Assistant Secretary-General and UNDP Regional Director for Asia and the Pacific, told the Vietnam News Agency (VNA) on July 29.

The Ministry of Finance is working with relevant ministries to issue green bonds next year, an official has said.

The ASEAN Capital Markets Forum (ACMF), which met in Singapore on October 11, launched two key initiatives to drive a more connected and sustainable ASEAN capital market.