The Role of Green Finance in Vietnam’s Integrated Economic Development Model

Abstract

Huynh Thanh Dien

The study analyzes the role of Climate Finance (CF) and Environmental, Social, and Governance (ESG) in Vietnam’s integrated growth model for the period 2025–2030. Building on the theories of endogenous growth, new institutional economics, and global value chains, the paper develops a three-layer analytical framework: the international context; three intermediate pillars (climate finance, institutional–data coordination, and geo-economic positioning); and direct factors (ESG, technology, and human resources). The analysis shows that Vietnam has opportunities to mobilize international resources (JETP, green credit, GSS bonds, carbon market), but absorption capacity remains limited due to fragmented institutions, lack of transparent data, and weak technological and human resource capabilities. Accordingly, the study proposes viewing climate finance and ESG not as external pressures but as endogenous drivers to enhance total factor productivity (TFP), increase domestic value added (DVA), and expand access to international markets. Policy implications emphasize institutional reform for coordination, the development of MRV systems and carbon markets, the expansion of green finance channels, and improvements in workforce quality.

PDF