Page 13 - VET357

COVER STORY

Slow going

Solutions have been forthcoming to address the host of issues that continue
to beset the development of Vietnam’s sustainable bond market.

By PHAN LINH

reen bonds, social bonds, sustain- According to Ms. Thi Bich Thao, surpassing the 21 per cent growth in the
able bonds, and green credit are Deputy Secretary-General of the Vietnam global and Eurozone markets combined.
G viewed as the key foundations of Bond Market Association (VBMA), sus- Debt in ASEAN+3 members totaled $798.7
sustainable finance and aimed at fulfilling tainable bonds raise capital to finance billion as of the end of last year, constituting
the government’s commitments to the projects and programs that benefit both some 20 per cent of the global market.
world regarding net-zero emissions and the environment and society. The trajectory of green and sustainable
harnessing external resources to steer the bond development is therefore crucial in
economy towards sustainability. However, Green realizing the UN Millennium Development
the inconsistent provision of architectural taxonomy postponed Goals and meeting government commit-
blueprints, technical standards on prod- The global and Eurozone sustainable ments to reduce greenhouse gas emissions
ucts, and information on investor bases, bond markets reached $4 trillion and $1.5 to net-zero. Vietnam, as one of the five
issuing organizations, corporate gover- trillion, respectively, as of the end of 2023, countries most affected by climate change,
nance culture, and transparency, among Ms. Thao continued. In contrast, the may see a reduction in GDP of up to 3.5
other factors, has resulted in a slowdown ASEAN+3 member countries saw a 29.3 per cent by 2050. The World Bank estimates
in the flow of green capital. per cent increase in the market last year, that Vietnam may need additional invest-

22 Vietnam Economic Times May 27, 2024 en.vneconomy.vn