Carbon credits are gaining traction as valuable “green assets.” Yet, for Vietnamese businesses to turn this potential into tangible benefits, they need solid financial backing, technical guidance, and effective market linkage.
From biomass credit to carbon opportunity
Vietnam became the first country in the East Asia-Pacific region to receive a payment of USD 51.5 million from the World Bank’s Forest Carbon Partnership Facility (FCPF) for verifiable carbon emissions reductions. This amount benefited 70,555 forest owners and 1,356 forest-adjacent communities across six provinces, distributed according to a transparent plan ensuring fairness and inclusive participation. This highlights how carbon credits, an intangible asset, can be a sustainable revenue stream for both communities and the nation.
With 14.7 million hectares of forest, a tropical climate, and rapid biomass growth, Vietnam is uniquely positioned to become a regional leader in carbon credit supply. However, realizing this potential requires long-term, sustainable capital to support investments in technology, infrastructure, and compliance with rigorous international standards for certification and data transparency.
Recognizing this, Agribank has taken the lead in supporting businesses. By signing credit agreements with Van Lang Yufukuya Co., Ltd. and Lam Thanh Hung Co., Ltd. in Thanh Hoa Province, the bank has not only provided financial resources but also instilled confidence for these companies to pursue green projects, thereby contributing to the foundation of a carbon economy.
Located in the Nghi Son Economic Zone, Van Lang Yufukuya specializes in woodchips and biomass wood pellets – products in high demand in Japan, South Korea, and Europe for renewable energy. Since 2020, Agribank has supported the company with a credit line of VND 200 billion (approx. USD 7.86 million), of which VND 161 billion (approx. USD 6.33 million) has been disbursed. The timely funding has helped maintain the company’s raw material supply chain, meet export deadlines, and invest in market expansion and processing technology upgrades.
Crucially, Van Lang sources materials exclusively from FSC (Forest Stewardship Council) certified suppliers and pays directly for each shipment. This practice not only meets the market’s sustainability and transparency expectations but also reflects the company’s long-term commitment to international standards.
Meanwhile, Lam Thanh Hung Co., Ltd., based in Tuong Linh commune, focuses on producing woodchips and finger-jointed wood panels. Agribank granted the company a credit line of VND 80 billion (approx. USD 3.15 million), which has already been fully disbursed. The funding has enabled the company to scale production and enhance its competitiveness in the global market.
Lam Thanh Hung manages 700 hectares of forest across four communes in Nong Cong district, Thanh Hoa, leased from 258 households. The company not only pays rent in full but also compensates each household directly upon material collection. This model ensures a stable supply chain, generates local income, and fosters equitable benefit-sharing – a key factor in sustainable development.
At first glance, these appear to be traditional wood industry loans. In fact, they are pivotal in the carbon value chain. From growing raw forests to biomass processing and export, every activity contributes to carbon dioxide absorption and emission reduction – measurable, reportable, and verifiable (MRV). Once verified to international standards, these reductions become carbon credits that can be traded on both voluntary and compliance markets.
Thus, Agribank’s credit is more than financial support for production – it’s a launchpad for Vietnamese businesses to participate in the global carbon credit market, valued at over USD 900 billion in 2024 and still growing. This illustrates how a commercial bank can serve as a strategic link between traditional agricultural economies and the green economy of the future.
Mr. Lang Van In, Chairman of Van Lang Yufukuya, stated: “Agribank’s loan has been the key to investing in biomass processing lines and reforestation. Despite supportive policies under Decree 06/2022/ND-CP and Decision 888/QD-TTg, we still face many hurdles – high MRV monitoring costs, complex international certification processes, and transparency demands. Without Agribank’s support, we couldn’t have come this far.”
The capital provided by Agribank not only sustains production but also enables businesses to explore green economy opportunities, where value derives not just from timber products, but from carbon reduction. This opens a gateway for Vietnamese firms to unlock value from carbon credits – a rising intangible asset.
Lam Thanh Hung’s representative added: “Financial support has helped us maintain forest-to-processing chains and gain access to promising carbon credit markets in Japan, the EU, and South Korea. We believe carbon credits will become a stable income stream, complementing our traditional wood business and strengthening our financial foundation.”
Carbon credits gain trust on global markets
Agribank’s timely funding has helped businesses meet international standards, stabilize production, and maintain credibility with foreign partners. Thanks to this backing, not only Van Lang and Lam Thanh Hung but also other Vietnamese wood exporters now have the opportunity to tap into global carbon credit markets.
If enterprises are the ones generating carbon credits, banks are the bridge that connects these credits to the market. As the leading financial institution in agriculture and rural development, Agribank understands Vietnam’s forest potential in the global carbon value chain.
By financing green production, Agribank is contributing to Vietnam’s Net Zero 2050 commitment and positioning itself in the emerging field of carbon finance – a promising sector that can boost income through service fees, guarantees, international payments, and elevate the bank’s green brand.
When businesses earn steady revenue from carbon credits, banks benefit from stronger repayment capacity and reduced credit risk. It’s a win-win relationship, where Agribank not only fulfills its social responsibility but also enhances its competitive edge in the financial sector.
Moreover, carbon credit projects require advanced MRV systems, digitized and transparent data – all of which support Agribank’s digital transformation strategy. This creates opportunities to offer modern services like cross-border payments, cash flow management, and digital banking. A green credit package, therefore, becomes the foundation for a broader suite of financial services that deepen the bank-client relationship.
From the buyer’s side, early feedback indicates rising interest in Vietnamese carbon credits. A representative shared:
“Carbon credits sourced from Vietnamese businesses fully meet legal frameworks, technical standards, and environmental value. These are high-quality credits, eligible for resale or use in emission reduction commitments. More importantly, they enhance the credibility of both the seller and buyer in international markets.”
Clearly, the international market appreciates Vietnam’s efforts. Every successful carbon credit transaction not only generates revenue but serves as a vote of confidence in Vietnam’s growing presence in the global carbon value chain.
The global carbon market is a “highway” toward a green economy, but only those equipped with capacity can join the journey. With its extensive national network and leadership as a state-owned commercial bank, Agribank is the strategic bridge to bring Vietnam’s carbon credits to the world.
This journey requires more than capital. It demands collaboration in technology, governance, and most importantly, a strategic vision. With its ESG commitment and mission as the “Bank for the Community,” Agribank is proving that green finance is not just a slogan – it is tangible action that strengthens businesses, advances national sustainability goals, and positions Vietnam firmly on the global carbon map.
Tien Phong
