How Climate Bonds is Supporting Banks in Vietnam to Become Credible Climate Leaders

In December 2024, the Asian Development Bank (ADB), ABBANK, and PwC Vietnam jointly launched the “Green Banking Capacity Building” programme; an initiative designed to enhance the capacity of Vietnamese banks in delivering green and sustainable finance. 
 
 As part of this continued initiative, Climate Bonds is supporting other domestic banks like ABBANK, with a focus on enhancing capacity in green banking and sustainable finance. The objective is to support the banking sector’s journey toward expanding its green finance portfolio with the goal of aligning with international best practices. 

Technical Assistance that Builds Credibility 

By working closely with banks to align methodologies and data processes with international best practices, Climate Bonds helps ensure that frameworks are credible, implementable, and market-ready, meeting the expectations of both regulators and investors. 

Climate Bonds is leading two key components of the "Green Banking Capacity Building” programme: 

• Portfolio Review: Assessing ABBANK’s lending activities against key international green taxonomies and classification frameworks to evaluate alignment and identify opportunities for improvement. 
• Framework Development: Supporting ABBANK in developing a green or sustainable finance framework, including guidance on lending processes and data collection needed for project-level screening. 

Zalina Shamsudin, Head of Technical Assistance and Capacity Building, Climate Bonds Initiative: 

“Our objective is to empower the financial institutions within developing economies to incorporate credible, science-aligned green finance strategies into their lending portfolios. Green lending is as critical as the sustainable bond market in supporting national economies to evolve to be resilient and climate aligned.” 

Driving Systemic Change in ASEAN Financial Sectors 

Vietnam is fast becoming a key player in ASEAN ’s green finance movement. From aligning banking practices with sustainable principles to equipping high-emission industries with credible decarbonisation tools, Climate Bonds’ work in Vietnam showcases the transformational power of targeted technical assistance. 

To complement the progress made with the banking sector, in June 2025, Climate Bonds published a new strategic resource: Transition Finance for Hard-to-Abate Sectors in Vietnam. 

This practical guide provides Vietnamese corporates - particularly in the steel, cement, and basic chemicals industries - with science-based tools to develop credible, Paris-aligned transition plans. These three sectors are among the highest emitting in the country and are facing mounting investor scrutiny and regulatory pressure, including from mechanisms like the EU’s Carbon Border Adjustment Mechanism (CBAM). 

Momentum and Next Steps 

Together, these two initiatives, the Green Banking Capacity Building programme and the Transition Finance for Hard-to-Abate Sectors guide, demonstrate Climate Bonds’ commitment to supporting Vietnam’s journey to a low-carbon economy. 

From pre-issuance planning to full framework implementation, our Technical Assistance Services are designed to meet the evolving needs of banks, corporates, and governments. 

Whether assessing portfolios, building capacity, or guiding transition strategies, Climate Bonds delivers practical, science-aligned solutions that help stakeholders across the financial system deliver real impact. 

ABBANK is a prime example of this work in action, with more yet to come.