Building a green financial system - Experience of some countries in the world and lessons for Vietnam

Abstract

The “National strategy on green growth for the period 2011-2020 with the vision to 2050” was approved by
the Prime Minister according to Decision No. 1393/QD-TTg on 23/9/2012. To provide finance for this strategy,
according to GIZ (2015), Vietnam needs at least 30.7 billion USD by 2020, which is equivalent to 15% of GDP in
2015, and 21.2 billion USSD for the period from 2012 to 2030. This presents big challenges for the Vietnamese
economy and financial system due to the country’s significant budget deficit rates, e.g. 6.1% of GDP in 2015,
and 3.67% of GDP in 2018. Therefore, one of the main objectives of the Macroeconomic Reform Program/Green
Growth Program is to reform the green financial sector, which specifically aims at establishing a green financial
system, create financial instruments and products to mobilize capital for sustainable development in Vietnam. To
achieve these objectives, it is very important for Vietnam to learn from the experiences of other countries in the
region and around the world. Thus, this article focuses on studying experiences in several countries (including
India, Singapore, and Korea) in order to draw valuable lessons for Vietnam