Green Credit Taxonomy System: Current Situation in Vietnam and Lessons from the EU Experience

Abstract

This study analyzes the EU green taxonomy system to provide recommendations for Vietnam's green credit taxonomy development. Vietnam faces severe climate vulnerability and requires substantial investment to achieve its Net Zero 2050 commitment, with the banking sector playing a critical role in capital mobilization. Despite recent policy progress including the establishment of a Green Project Classification List, Vietnam lacks detailed technical criteria and faces challenges including capacity constraints, market fragmentation, and greenwashing risks. Using comparative analysis methodology, the research examines the design, implementation, and lessons from the EU Taxonomy—the global gold standard for environmental rigor—while assessing Vietnam's gaps against international best practices. Results provide a phased implementation roadmap and policy recommendations adapted to Vietnam's context, supporting JETP implementation and ASEAN Taxonomy integration, ultimately contributing to enhanced climate finance mobilization effectiveness