Vietnam Requires $670 Billion for Net Zero Transition by 2050

Vietnam is facing a significant financial challenge as it commits to achieving net zero emissions by 2050. According to the Ministry of Finance, the country will require approximately $670 billion to meet its green growth and sustainability objectives. This translates to an annual investment of approximately $20 billion annually, to maintain its trajectory towards net zero emissions.

During the recent Green Finance Conference 2026 held in Ho Chi Minh City, experts discussed the pressing need for a comprehensive green financial ecosystem. The conference, organized by Nam A Bank, the Vietnam International Financial Center (VIFC-HCMC), FiinGroup, and the Global Green Growth Institute (GGGI), highlighted the challenges and opportunities in attracting green capital. Vo Hoang Hai, Deputy General Director of Nam A Bank, mentioned that the bank has secured $350 million in green financing from international organizations, which has already been fully allocated to projects.

“Vietnam needs a green financial ecosystem that is deep, transparent, and robust to turn its ambitions into reality.”Ha Huy Cuong, Deputy General Director, Nam A Bank

Despite the growing interest in green financing, the cost of capital for clean energy projects in emerging markets like Vietnam is reportedly about twice that of developed countries, according to the World Bank. This disparity presents a significant barrier to attracting the necessary investment. Additionally, many green projects in Vietnam struggle to access international funding due to a lack of transparency in financial flows and inadequate measurement and reporting systems for emissions.

To overcome these challenges, experts emphasize the importance of diversifying financial resources. Nguyen Huu Huan, Deputy Director of VIFC-HCMC, pointed out that the green finance market must be supported by both domestic and international capital, particularly from the private sector. This approach will not only alleviate pressure on the banking system but also create flexible and secure long-term financing options needed for Vietnam's green transition.

“The cost of capital for clean energy projects in emerging economies is about twice that of developed countries.”Nguyen Huu Huan, Deputy Director, VIFC-HCMC

Moreover, the establishment of a green taxonomy is crucial for clarifying which projects qualify as green, thus reducing the risk of greenwashing. This legal framework aims to help banks assess risks more accurately and guide businesses in designing projects that can access preferential financing. However, many criteria remain qualitative, lacking clear quantitative thresholds, which may hinder the growth of the green finance market.

“A green taxonomy will help clarify which projects qualify as green, reducing the risk of greenwashing.”Paul Xavier, Program Officer, International Finance Corporation (IFC)

As Vietnam aims to build a robust green financial ecosystem, the VIFC-HCMC is positioned to play a pivotal role. It is expected to not only facilitate the issuance and trading of green financial products but also standardize projects to enhance their attractiveness to international investors. The center's focus on reducing risks and improving the funding capacity of green projects is seen as essential for connecting with global green capital.

In summary, it requires a concerted effort to build a sustainable financial framework that can support the necessary investments. The collaboration between government, financial institutions, and private sector stakeholders will be critical in addressing the financial gaps and ensuring a successful transition to a green economy.