Vietnam is shifting its economic model toward green growth to maintain competitiveness in global markets. With the EU's Carbon Border Adjustment Mechanism (CBAM) and strict ESG requirements from global corporations, Vietnamese exporters in steel, cement, and electronics must decarbonize to avoid market exclusion. The country aims to increase renewable energy capacity to 28-36% by 2030 under its Power Development Plan VIII. While green credit is expanding, significant challenges remain, including a projected climate finance need of 368 billion USD by 2040 and limited technical capacity among small and medium enterprises.
