Vietnam will require an estimated 700 billion USD to meet its green growth and net-zero targets by 2050, yet gaps in market infrastructure, transparency standards, and risk-sharing mechanisms are keeping its green projects from becoming the kind of can’t-miss opportunities global investors crave.

That warning rang out at the Vietnam Green Finance Conference 2026, built around the theme “Where Green Capital Meets Opportunities”, held in Ho Chi Minh City on August 6. The event was co-hosted by the Executive Board of the Vietnam International Financial Centre in Ho Chi Minh City (VIFC-HCMC), Nam A Bank, FiinGroup, and the Vietnam office of the Global Green Growth Institute (GGGI).

Capital demand mounts, project appeal lags

The Ministry of Finance pegs Vietnam’s long-term investment needs for green growth and sustainable development through 2050 at 670-700 billion USD. Of that, roughly 368 billion USD, or close to 30 billion USD a year, will go toward climate change adaptation alone.

That’s far too big for state budget and traditional banks to handle, making private and international cash a must if Vietnam hopes to meet its green transition goals.

Paul Xavier, from the International Finance Corporation (IFC) - a World Bank Group member, said foreign investors are still active on the hunt for green opportunities. Their biggest question isn’t which country has the largest financing hole, but which markets are ready to serve up projects attractive enough to put cash behind.

Nguyen Quang Thuan, Executive Chairman of FiinGroup and FiinRatings, said the real choke point isn’t a lack of available funds. It’s the quality of the projects themselves.

Many domestic projects simply aren’t designed or packaged to meet what foreign investors expect. Before earning the “green” label, he said, a project has to prove it makes economic sense, is financially sound and can deliver steady cash flows.

Thuan added that an investor’s own financial strength is another major screening point for international funds. Vietnam also lacks the financial tools, like infrastructure and project bonds and other long-term vehicles, to turn workable projects into assets investors can actually buy.

Green finance set to anchor VIFC’s strategy

Assoc. Prof. Dr. Nguyen Huu Huan, Vice Chairman of the Executive Board of VIFC-HCMC, said the VIFC will focus on building market infrastructure needed to bridge the gap between big investment pledges and bankable projects.

Huan said VIFC plans to open a one-stop shop dedicated to green finance projects and activities. Beyond simply matching investors with businesses, the platform will standardise the entire project development process, from setting standards and disclosure requirements to raising and allocating capital.

While plenty of global financial hubs already have full-blown green finance ecosystems, Vietnam is still missing several critical pieces, including standardised green project portfolios, mechanisms to convert projects into investable assets, adaptation finance solutions and deeper market liquidity.

That’s why a top VIFC priority is building a pipeline of globally standardised green projects with transparent cash flows, solid financial structures, appropriate public-private partnership mechanisms and full insurance coverage. At the same time, the centre will push transition finance and adaptation finance products while strengthening risk-sharing and driving down the cost of capital for firms

Another priority is market infrastructure through data, measurement, reporting and verification (MRV) systems to digital platforms and tools that help companies get projects ready to meet international standards. Notably, the VIFC Green Rulebook, a comprehensive green finance framework, is expected by the end of 2026, laying the legal foundation for Vietnam’s green and transition finance markets.

Notably, the Green Supply Chain Finance model, jointly developed by Nam A Bank, FiinGroup, IFC, and the Swiss State Secretariat for Economic Affairs (SECO), is set to be integrated into the VIFC ecosystem as a flagship green finance initiative.

According to Deputy CEO of Nam A Bank Vo Hoang Hai, the model targets small and medium-sized enterprises (SMEs), which make up some 98% of Vietnamese firms but often struggle to access credit because they lack collateral, solid data, or the documentation that international financial organisations demand.

Rather than leaning on collateral, the model taps transaction data and supply chain cash flows as the basis for lending decisions. Digitising the entire value chain also lets companies track their carbon footprint, boosts transparency and widens access to green financing.

Beyond serving Vietnam, the model is expected to scale across Southeast Asia, paving the way for a new wave of financing products, including blue finance, adaptation finance and funding for projects that make cities more resilient./.