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Coordinated and published by The Grassroots Institute, the Grassroots Journal of Natural Resources (GJNR) is an international journal dedicated to the latest advancements in natural resources throughout the world. The goal of this journal is to provide a platform for scientists, social scientists, policy analysts, managers and practitioners (on all academic and professional levels) all over the world to promote, discuss and share various new issues and developments in different arenas of natural resources.
Ha Le Thuy
University of Law, Hue University, Vietnam. Email: hlthuy@hueuni.edu.vn
ORCID: https://orcid.org/0000-0001-7881-2090
Grassroots Journal of Natural Resources, 8(3): 498-523. Doi: https://doi.org/10.33002/nr2581.6853.080320
Received: 18 October 2025
Reviewed: 05 December 2025
Provisionally Accepted: 09 December 2025
Revised: 14 December 2025
Finally Accepted: 19 December 2025
Published: 31 December 2025
Green banking has emerged as a crucial tool for promoting sustainable development by integrating environmental and social factors into financial decision-making processes. In Vietnam, the development of green banking is increasingly encouraged through policy initiatives; however, the legal and regulatory framework remains fragmented, lacking classification criteria, risk management obligations, and effective sanctions. This paper explores the legal and regulatory challenges of green banking in Vietnam, a developing economy undergoing rapid growth and environmental transformation. Using a theory- and policy-based legal analysis approach, along with comparative insights from selected international and regional practices, this study identifies three main challenges: (I) the lack of a coherent legal definition and classification of green banking activities; (ii) reliance on non-binding regulatory instruments rather than enforceable legal obligations; and (iii) restrictive mechanisms for oversight, disclosure, and accountability, particularly concerning environmental, social, and governance (ESG) risks and greenwashing. The paper argues that these challenges undermine the effectiveness and credibility of green banking initiatives, diminishing their ability to make a meaningful contribution to sustainable development goals. The paper concludes by proposing key legislative reforms, including integrating green banking into sustainable development strategies, strengthening ESG disclosure and risk management requirements, and aligning Vietnam's legal framework with international standards while remaining sensitive to domestic institutional and economic conditions.
Green banking; Sustainable development; Green credit; Vietnam
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Thuy, H.L. (2025). Legal and Regulatory Challenges for Green Banking in the Context of Sustainable Development: The Case of Viet Nam. Grassroots Journal of Natural Resources, 8(3): 498-523. Doi: https://doi.org/10.33002/nr2581.6853.080320
Thuy, H.L. (2025). Legal and Regulatory Challenges for Green Banking in the Context of Sustainable Development: The Case of Viet Nam. Grassroots Journal of Natural Resources, 8(3), 498-523. https://doi.org/10.33002/nr2581.6853.080320
Thuy H.L. Legal and Regulatory Challenges for Green Banking in the Context of Sustainable Development: The Case of Viet Nam. Grassroots Journal of Natural Resources, 2025, 8 (3), 498-523. https://doi.org/10.33002/nr2581.6853.080320
Thuy, Ha Le. 2025. “Legal and Regulatory Challenges for Green Banking in the Context of Sustainable Development: The Case of Viet Nam”. Grassroots Journal of Natural Resources, 8 no. 3: 498-523. https://doi.org/10.33002/nr2581.6853.080320
Thuy, Ha Le. 2025. “Legal and Regulatory Challenges for Green Banking in the Context of Sustainable Development: The Case of Viet Nam”. Grassroots Journal of Natural Resources, 8 (3): 498-523. https://doi.org/10.33002/nr2581.6853.080320
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