Harmonizing Vietnam's Green Finance Policy with International Standards: A Case Study of the Green Bond Market

Abstract

This study aims to assess the degree of harmonization between Vietnam's legal framework for green bonds, specifically Decree 08/2022/ND-CP, and the International Capital Market Association's (ICMA) Green Bond Principles (GBP), thereby identifying potential barriers to attracting international investment. Using a qualitative research method, through document analysis and legal comparison, the paper systematically compares Vietnam's regulations against the four core components of the GBP: use of proceeds, process for project evaluation and selection, management of proceeds, and reporting. The findings reveal that while there are foundational structural similarities, Vietnam's legal framework has significant gaps. Specifically, the regulations lack detailed technical screening criteria for the green project taxonomy, requirements for transparency in the project selection process, and most notably, the absence of mandatory requirements for quantitative impact reporting and the role of independent third-party verification. These shortcomings are identified as serious barriers that reduce credibility and limit access to large-scale international capital flows. Therefore, the study offers critical practical implications by providing specific policy recommendations for Vietnamese policymakers to refine the legal framework, enhance its compatibility with international standards, and ultimately unlock crucial capital for the nation's green growth objectives.