ĐÀ NẴNG — Việt Nam needs an added investment loan of US$368 billion – an equal to 6.8 per cent of annual GDP – for the ‘green’ economy until 2040 to reduce damage caused by disasters and climate change in the coming decades.

Country Director of the World University Service of Canada (WUSC), a Canadian non-profit organisation, Đỗ Đăng Tèo, said at the Đà Nẵng Green Finance Summit, stressing that ‘green’ credit accounted for only 4 per cent of the total outstanding balance of $31.8 billion in the first quarter of 2026.

It’s estimated that the country would suffer an accumulated loss of $523 billion from calamities by 2050 if there are no urgent climate change response solutions implemented.

He added that despite an average 20 per cent annual growth between 2017 and 2025, ‘green’ credit in Việt Nam has not yet progressed rapidly enough to meet the country’s 2050 net-zero target.

“Big groups were seen as the major borrowers of green credit in renewable energy (hi-tech farming, wind, and solar power), but small- and medium-sized businesses still had limited access to the credit,” Tèo said.

“Climate businesses have been stuck in quick examination for ‘green’ qualified investment projects by banks, while ‘green’ projects need a longer time to prove profit outcomes.”

The WUSC’s country director suggested that blended domestic equity, green bonds, climate resilient finance fund will be eligible solutions in boosting ‘green’ investment.

He also asked to streamline ‘green’ certificate granting and expanding risk-sharing applications in unlocking green credit for smaller tickets.

Deputy Director General of the Agency for Private and Collective Economic Development, Ministry of Finance, Nguyễn Đức Trung emphasised: “While the demand for green transition capital continues to rise, many businesses – particularly small- and medium-sized enterprises – still face challenges in meeting credit requirements, green standards, and ESG criteria.

“The agency is committed to continuously reforming the policy framework, removing barriers for climate enterprises, and promoting sustainable and innovative financial instruments for capital mobilisation.”

Francesca Bellone, head of Cooperation/Counselor (Development) at the Embassy of Canada to Việt Nam said: “Today's summit reflects that shared ambition and our commitment to advancing resilient and sustainable development together. Across Việt Nam, demand for sustainable infrastructure, clean technologies, climate smart agriculture, resilient supply chains, and low-carbon solutions is creating new opportunities. At the same time, communities across the country, especially in coastal regions, are already experiencing the impacts of climate change firsthand. The need for climate resilient growth has never been more urgent.”

“Strong collaboration across the ecosystem will be essential to mobilising the investment needed to support Việt Nam's sustainable growth ambitions. Canada believes that development assistance can have greater impact when it helps unlock private capital. Public resources can help reduce risk, strengthen markets, and attract larger flows of private investment. Canada has long partnered with Việt Nam to mobilise private capital for sustainable development."

Kate Wallace, consul general of Australia in HCM City, said: “Australia’s focus on attracting private capital and encouraging long-term green investments. Through climate finance initiatives and partnerships with development finance institutions, Australia contributes to de-risking investments and improving access to capital for climate solutions. Notably, the partnership between Australia and the International Finance Corporation (IFC) has helped mobilise over $1 billion in climate-related investments in Việt Nam, supporting the development of a sustainable financial market and the journey toward net-zero emissions."

Việt Nam and Canada launched a new blended finance initiative designed to unlock private investment for climate enterprises, and to promote green growth, innovation and sustainable private sector development.

It aims to use official development assistance (ODA) as catalytic capital to reduce investment risks and attract significantly greater private financing into climate-focused businesses.

Jim Nickel, ambassador of Canada to Việt Nam, stated: “The recent elevation of Canada-Việt Nam relations to a strategic partnership reflects the deep and growing ties between our two countries. At its core, sustainable finance is about people. When investment reaches the businesses and communities that need it most, it can create jobs, improve livelihoods, and strengthen the resilience of vulnerable coastal communities facing the impacts of climate change.”

“The Đà Nẵng Green Finance Summit is an important opportunity to bring together the partners needed to turn opportunities into investment, and investment into lasting impact. Through FinDev Canada and our cooperation with impact investment funds, Canada is committed to supporting Việt Nam unlock innovative finance for sustainable and inclusive development.”

Phùng Tiến Hùng, an expert from the Agency for Private and Collective Economic Development, shared that legal framework on ‘green’ finance will be issued this November, and a preferential interest rate of 2 per cent will be reserved for ‘green’ and circular investment projects as well as EGS managed projects.

Nguyễn Chí Hiếu, from Asia Commercial Bank (ACB), said the bank has reserved a self-mobilised ‘green’ credit fund of VNĐ5 trillion ($200 million) for ‘green’ investment projects, but only 10 per cent of the fund ($20 million) was disbursed.

He said credit risk is a major challenge for ‘climate’ businesses approaching to the ‘green’ credit at the bank.

The Green Finance Summit is staged as central Việt Nam has been facing growing climate risks, including extreme weather patterns, coastal erosion, and saltwater intrusion, and the need for investment in climate adaptation and sustainable development has become increasingly urgent. — VNS