Standardizing Green Credit in Vietnam – Breakthrough from Decision 21

Taking a major leap forward, Vietnam’s sustainability transition has yet reached another milestone. With the issuance of Decision Number 21/2025/QĐ-TTg on July 4, 2025, the country has officially introduced a National Green Taxonomy, a clear framework defining which projects qualify as “green”. This milestone provides long-awaited clarity for banks, investors, and businesses seeking access to green credit and green bonds.  

Vietnam drawing organizations closer to environmental standards, locally and internationally through alignment of regulations – Decision 21. (Source: Internet) 

Under Decision 21, to be certified as “green”, a project must satisfy two main criteria. Firstly, it must be legally compliant under Vietnam’s environmental protection laws by having an approved environmental impact assessment (EIA) report or an environmental permit where it explicitly states that a project does not need one of those. The second criterion is that it must deliver environmental benefits in the seven key sectors (Appendix I of Decision 21) (Thuvienphapluat.Vn, n.d.). This Decision took effect on August 22, 2025.  

Decision 21 also explains who can verify, certify, and even classify investment projects under this new taxonomy. Both competent state authorities and independent certification bodies are in the framework. Independent bodies must meet strict volumes and operational requirements like the legal status to be authorized. This helps to ensure the classification process is credible and consistent, building trust among money lenders, investors, and project owners. 

Introducing VertZéro: Helping align you with Decision 21 

As Vietnam creates more rigorous green project rules for classification, companies will need tools to help measure, report and plan their environmental performance that aligns with domestic and international standards. VertZéro, a carbon accounting software “MadebyFPT” helps businesses track Scope 1, 2 and 3 emissions, forecast reduction and manage sustainable transformation (Pioneering Green Transformation – VertZéro, n.d.).  

VertZéro’s capabilities fall directly under Decision 21’s requirements. It supports the compliance with global standards like the GHG Protocol, ISO 14064-1 and has recently earned the TÜV Rheinland Certificate (Germany) [link to article] making it the first “Make in Vietnam” solutions to receive this level of international certification. Through automation of data collection and reporting workflows, till mapping of supply chains and producing validated reports, VertZéro reduces the time and cost spent for organizations who are aiming to qualify under green credit projects. 

Thus, companies using VertZéro are better equipped to create projects that satisfy Decision 21’s criteria: having the required environmental permits or registrations, proving environmental benefits in the key areas and ensuring transparent, credible reporting through certification pathways. 

Challenges & Implications Ahead 

Decision 21 is more than a law; it is the foundation of credibility and scalable deployment of green finance across Vietnam. For banks, it provides clarity for the issuance of green credit. For businesses, it clarifies what kinds of projects are able to receive preferential funding and what papers are needed. For those looking to invest, locally or internationally, Decision 21 brings Vietnam closer in alignment with global taxonomies and ESG expectations. 

However, challenges still remain. The criteria in Decision 21 are strong in concept but lack quantitative threshold. In some industries, there is no clarity on how environmental benefits will be measured. Moreover, the capability for implementation among certification bodies, financial organizations, and project developers must be significantly enhanced. Making sure that the certifiers are credible and affordable is important as well. Lastly, ongoing alignment with other policies like banking regulations and credit laws will be necessary to ensure that green credit is not isolated but integrated with Vietnam’s overall financial system.  

Conclusion 

Up till today, Vietnam’s financial industry has lacked standardization for evaluating environmental benefits, leading to many inconsistent interpretations of what counts as a green investment. Decision 21 changes that. It clearly states the requirements for environmental, legal, and performance-based requirements that every green project must meet to qualify for loans. Tools like VertZéro are positioned to play an important role in helping organizations meet the requirements of acquiring proper environmental permits, to preparing of credible emissions inventories, to demonstrating environmental benefits in the priority areas defined by the new taxonomy.  

As Vietnam moves forward, the real work begins, ensuring that these frameworks do not just exist on paper but are being implemented well by banks and other organizations, and that Vietnamese businesses of all sizes have access to the resources for meeting of standards. 

References 

Thuvienphapluat.Vn. (n.d.). 21/2025/QD-TTg in Vietnam, Decision 21/2025/QD-TTg verification of investment projects under the green taxonomy in Vietnam. THƯ VIỆN PHÁP LUẬT. https://thuvienphapluat.vn/van-ban/EN/Dau-tu/Decision-21-2025-QD-TTg-verification-of-investment-projects-under-the-green-taxonomy/673364/tieng-anh.aspx 

Pioneering Green Transformation – VertZéro. (n.d.). https://vertzero.eco/ 

Details of Decision No. 21/2025/QĐ-TTg 

Hong T. (2025, September 29). Chuẩn hóa tín dụng xanh Việt Nam – đột phá từ Quyết định 21. Tạp Chí Kinh Tế Sài Gòn. https://thesaigontimes.vn/chuan-hoa-tin-dung-xanh-viet-nam-dot-pha-tu-quyet-dinh-21/