Green bond market in Vietnam: barriers to corporate issuers, attractiveness to investors and potential growth

Hong Minh Le and Andrew Vivian

Asian Journal of Economics and Banking, 2025, vol. 9, issue 2, 162-188

Abstract: PurposeThis study investigates the challenges impeding the development of an effective green bond market in Vietnam and evaluates its potential to support the country’s transition from carbon-intensive industries to a greener economy, in line with its climate commitments.Design/methodology/approachThis study uses a qualitative research approach, conducting semi-structured interviews with 15 stakeholders representing different segments of Vietnam’s financial sector. Thematic analysis was carried out in three stages: initial coding, exploring connections between codes and developing three main themes: barriers for corporate issuers, investor attractiveness and the green bond market’s potential.FindingsThe major barriers for corporate issuers include a lack of intermediaries, regulatory shortcomings, high issuance costs and an underdeveloped corporate bond market. From the investor perspective, green bonds are perceived as less attractive due to relatively low yields, high project risks, limited market awareness and a scarcity of investment options. Despite these challenges, the market holds significant potential, supported by Vietnam’s net-zero ambitions, government backing and continuous legal framework improvements.Research limitations/implicationsThe study covers a sample weighted towards issuers, due to the limited public awareness of green investment. Future research could also include regulatory perspectives and use quantitative methods to expand upon these findings, especially as the market matures. Findings inform policymakers and practitioners, offering recommendations such as establishing intermediaries, developing a green taxonomy, legal reform, infrastructure enhancement and investor education. A stronger green bond market can support sustainable development, reduce emissions and promote long-term environmental and social wellbeing.Originality/valueThis study contributes by addressing a research gap in Vietnam’s green bond market using a qualitative, interview-based method, which is uncommon in the existing literature. It offers real-world insights from a diverse range of market actors, enabling a multidimensional understanding of market dynamics.

Keywords: Vietnam; Green bonds; Green economy; Sustainable finance; Green finance; Net-zero transition (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ajebpp:ajeb-05-2025-0045

DOI: 10.1108/AJEB-05-2025-0045

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