Analyzing the Impacts of Green Credit on Sustainable Development in Vietnam's Banking Sector

Abstract

The study highlights that green credit supports environmentally friendly projects, enhances economic efficiency, and minimizes the negative impacts of banking activities. The research methodology combines qualitative and quantitative approaches, with qualitative data collected from financial reports, green credit policies, and sustainability reports of commercial banks in Vietnam, while quantitative data is gathered through surveys and analysis of sustainability indices. Regression analysis is employed to clarify the relationship between green credit and sustainability criteria. The findings indicate that green credit has a positive impact on sustainable development in the banking sector. Banks that implement green credit not only improve their brand image but also reduce environmental risks, attract international funding, and contribute to creating conditions for sustainable economic development. However, the study also identifies challenges such as insufficient policy frameworks and difficulties in evaluating the effectiveness of projects funded by green credit. On this basis, the research affirms that green credit is a key factor in promoting sustainable development in the banking sector and proposes solutions such as improving legal frameworks, raising awareness, and enhancing the capacity for implementing green credit.