Although many businesses met sustainable agriculture standards, access to green finance remains very limited.
A report by the Institute for Research on Sustainable Development Management (MSD), released on March 20, shows that among 97 enterprises and cooperatives in sectors such as coffee, rice, seafood, and fruits and vegetables, only one entity was able to access preferential loans from a bank.
Only one agricultural enterprise was able to obtain preferential loans from a bank. Photo: Minh Quang.This reality reflects a significant gap between policy and implementation. Viet Nam has issued a green taxonomy covering seven sectors and 45 industries, while allowing organic and circular agriculture projects to borrow up to 70% of project value without collateral. However, according to MSD representatives, sustainability certifications, whether domestic or international, are still not sufficient for businesses to pass the bank’s door. The key requirements still revolve around collateral, counterpart capital, and business plans.
Barriers also come from the banks themselves. Many businesses reported that even with international organic certifications, their applications were rejected because credit officers could not recognize or evaluate these standards. Complicated procedures also discourage businesses from accessing green finance, forcing them to return to traditional lending channels.
Bank representatives acknowledged the difficulties in appraising projects based on green criteria, especially as the regulations remain highly technical. The lack of a common language between businesses and banks makes the approval process even more challenging.
Experts believe that to remove these bottlenecks, it is necessary to develop a synchronized green finance ecosystem, simplify the criteria, and “lower the threshold” of the green taxonomy to better suit small enterprises and cooperatives. At the same time, the role of intermediaries should be strengthened to support connections between capital markets and businesses.