Green bonds: a financial instrument for green growth, sustainable development, and Vietnam market development potential

Abstract

Currently, the world is facing challenges related to the depletion of resources, global warming, and natural ecosystem decline. Facing this situation, many countries around the world have gradually become more aware of the importance of environmental protection. Sustainable development models, green economies, and green growth policies are among the many new initiatives implemented in recent years. To promote a green economy, there is no other way than to build a green financial system, and green bonds are one of the potential financial instruments. The impact of green bonds on the global economy is far-reaching. By financing projects that promote sustainability, green bonds have played a key role in helping to reduce global emissions. Moreover, the increased availability of green bonds has allowed countries to access new sources of capital and invest in projects that will lead to longterm economic growth. Additionally, green bonds provide a new avenue for investors to support green initiatives, allowing them to make a positive impact on the environment while also earning a return on their investment. This study examines the potential of green bonds as a financing tool for sustainable development. The article also illustrates a brief picture of the green bond market in the world and the potential of green bonds in Vietnam. Through a literature review and analysis of current market trends, the study assesses the current state of green bond issuance in Vietnam and identifies the key factors influencing its growth. At the same time, it provides recommendations for policymakers, development action organizations, and investors to support the development of the market.