Vietnam Green Bond Market: 2025 Review and Outlook

In 2025, 100% of green & sustainability bond issuances obtained pre-issuance Second Party Opinions (SPOs) and Credit Ratings, despite a decline in local-currency issuance volume compared with the previous year. Together with the increasingly visible participation of non-financial corporates, this trend signals that the market is shifting its focus from expanding issuance volume to strengthening the quality and credibility of transactions.

Against this backdrop, FiinRatings has released the report, "Vietnam Green Bond Market: 2025 Review and Outlook," prepared with technical review and contributions from the Global Green Growth Institute (GGGI) Viet Nam Office under the “Green Bond Readiness Program”, supported by the Government of Luxembourg. The report provides an update on notable developments in the green bond and green credit markets, as well as emerging sustainable finance instruments.

Key takeaways:

🔹 Issuance quality continues to strengthen: In 2025, local-currency green and sustainability bond issuance reached VND 3,407 billion across 5 transactions, with 100% of issuances obtaining a pre-issuance SPO. Notably, Xuan Mai – Hanoi's 20-year green bond demonstrates the potential of green bonds to unlock longer-term financing for infrastructure projects.

🔹 Green credit maintains its growth momentum: Outstanding green credit reached VND 780 trillion by the end of 2025, up nearly 15% yoy and accounting for approximately 4.2% of total economy-wide credit. Renewable and clean energy accounted for over 37% of the total, followed by green agriculture at over 29%.

🔹 Sustainable finance instruments are becoming increasingly diverse. Beyond green bonds and green credit, sustainability-linked loans are beginning to gain traction. Transition finance is receiving growing attention as a financing solution for hard-to-abate sectors, while blue finance presents longer-term development potential linked to Viet Nam's marine economy advantages.

🔹 Significant headroom remains for green capital flows: Viet Nam is estimated to require approximately USD 368 billion in green and transition finance by 2040, with nearly half expected to come from the private sector.

Enhancing Readiness to Access Green Capital Flows

Alongside the growing demand for green finance, Viet Nam's policy framework is also being progressively strengthened. Decision 21 introduced the country's first official Green Taxonomy; Resolution 198 proposes a 2%/year interest rate subsidy for eligible projects; and the 2025 Corporate Income Tax Law introduces tax incentives for income from green bonds. Together with the Direct Power Purchase Agreement (DPPA) mechanism, these developments are creating a more supportive foundation for mobilizing and allocating capital toward green activities.

However, as the market develops, requirement around transaction transparency and credibility are also becoming more clearly defined. Proactively developing a Green Bond Framework, establishing a robust proceeds-management mechanism, and obtaining an independent external review will help enterprises better meet market standards, practices, and investor expectations.

Drawing on FiinRatings' practical experience in providing independent external reviews for sustainable finance instruments, the report offers in-depth analysis and practical guidance to help enterprises better understand the key areas of preparation, providing a useful reference for their green bond issuance plans.

👉 EXPLORE THE FULL REPORT: HERE

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