Vietnam's stock market regulator introduces green bond disclosure handbook

By enhancing transparency and standardizing disclosures, the Green Bond Disclosure Handbook that the State Securities Commission of Vietnam (SSC) introduced will build investor trust, reduce greenwashing risks, and support the growth of a credible and resilient green finance market in Vietnam.

Anna Gibson, climate counsellor at the British Embassy in Hanoi, made the remark at a seminar to introduce the handbook on October 13. The event was held by the SSC in the capital city, in collaboration with the British Embassy.

Vietnam has made strong international commitments, including achieving net-zero emissions by 2050. To meet this target, green bonds are a powerful instrument for mobilizing private capital toward projects that deliver real environmental benefits.

The success of green bonds depends on investor confidence that the funds raised are used transparently and effectively, Gibson emphasized.

The UK Government is committed to supporting Vietnam’s green finance journey and looks forward to expanding cooperation with the Ministry of Finance, SSC, and other stakeholders through a comprehensive strategic partnership - to scale up green finance, deepen capital markets, and position Vietnam as a regional leader in sustainable finance, she added.

The British Embassy representative also extended its appreciation to the SSC, Carbon Trust, the Institute of Policy and Strategy for Agriculture and Rural Development (IPSARD), and all partners for their dedication and collaboration in realizing this handbook.

The event also gathered Vu Chi Dung, director of the SSC's international legal department; domestic and international experts in green finance; and representatives from local organizations and enterprises.

Following the Green, Social, and Sustainability Bonds Issuance Handbook issued by the SSC in 2021, the commission continued its close cooperation with the British Embassy in Vietnam and experts from the UK PACT Program to develop the new Green Bond Disclosure Handbook.

This handbook provides practical, detailed guidance for issuers on pre- and post-issuance information disclosure in a comprehensive, consistent, and internationally aligned manner while ensuring compliance with Vietnamese laws and regulations.

Vu Chi Dung, director of the international legal department at the SSC, noted that Vietnam is among the countries most affected by climate change. Severe natural disasters, such as recent typhoons Yagi, Bualoi, and Matmo, have caused significant damage to livelihoods and the economy.

In response, sustainable and green development has become a core national priority, reflected in numerous government strategies and action plans. To realize this vision, green finance plays a critical role, with green bonds serving as a vital tool for mobilizing capital for environmentally friendly projects and promoting sustainable growth.

Transparent, consistent, and complete information disclosure is essential for the success of the green bond market. It helps investors understand the environmental and social impact of financed projects, strengthens market confidence, and enhances issuer credibility, thereby attracting both domestic and international investors.

On behalf of the SSC, Dung expressed his gratitude to the British Embassy in Hanoi, the UK PACT Program, experts from Carbon Trust, and Vietnamese specialists for their dedication and expertise in developing the handbook.

Representatives from the SSC and the British Embassy further thanked financial institutions, businesses, and experts attending the seminar, emphasizing that their participation ensures the handbook’s effective dissemination and implementation.

With guidance from this document and insights shared by experts, enterprises will be better equipped to engage in green bond issuance and disclosure, contributing to Vietnam’s national commitments to green growth and sustainable development.

The seminar focused on introducing the Green Bond Disclosure Handbook - a practical guide for issuers and stakeholders to understand the features of green bonds, the importance of transparent disclosure, and the requirements for pre- and post-issuance reporting in line with international best practices and Vietnamese regulations.

The handbook comprises five main sections. First, introduction - outlining the purpose, scope, target audience, and usage of the handbook. Second, overview - explaining green bond concepts, legal context, best reporting practices, and the importance of disclosure.

Third, pre-issuance disclosure - detailing international best practices (four core components: use of proceeds, project selection, management of proceeds, and reporting) alongside Vietnamese regulations on corporate bonds and environmental protection.

Fourth, post-issuance disclosure - summarizing both international standards and domestic legal requirements. Fifth, annexes - providing case studies and comparative analyses of disclosure requirements across global and regional frameworks.

Following the successful event in Hanoi, the SSC introduced the Green Bond Disclosure Handbook in Ho Chi Minh City on October 15.

The UK PACT (Partnering for Accelerated Climate Transitions) program is a technical assistance initiative with a global budget of £260 million, supporting developing countries with high potential for emission reduction and fair, clean growth transitions.

Funded jointly by the UK Foreign, Commonwealth and Development Office (FCDO) and the Department for Energy Security and Net Zero (DESNZ), and managed by the FCDO, the program was launched in 2018 and officially began implementation in Vietnam in 2024.