Green credit remains out of reach for many businesses
Despite growing demand for sustainable investment, many businesses say access to preferential green credit remains difficult. Banks commit VND230 trillion for Southeast region projects Credit access in focus as Southeast region targets faster growth State Bank unlocks capital flows to fuel Southeast regional economic growth
Despite the growing demand for sustainable investment, many businesses in the newly expanded Southeast region are finding it difficult to access preferential green credit. Green credit is expected to become a key source of funding for businesses seeking to shift toward sustainable production and business models, but obtaining such funding remains challenging.
At a recent banking conference, several companies reported that gaining access to green credit is complicated, with interest rates for solar energy investment loans currently standing at 11 percent per year, and increasing by an additional 3 percentage points after the first year. While some companies, such as MIZA Joint Stock Company and New Era Cold Storage Company, have successfully obtained green loans at lower rates, they attribute this success to thorough preparation and careful planning.
To qualify for loans, companies must meet stringent requirements related to environmental protection, emissions, energy use, labor conditions, and governance transparency, further complicating the process for many businesses.
Brief written by urgent.news from SGGP English Edition Business's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
