Bond Financing and Green Credit in Renewable Energy: Evidence and Policy Implications from Vietnam

ABSTRACT: The development of renewable energy is a strategic priority in realizing Vietnam’s commitment to net-zero emissions by 2050. Amid the growing capital demands of renewable energy projects, corporate bonds and green credit have emerged as effective financial instruments. This paper evaluates the current status of capital mobilization through bond issuance in the renewable energy sector, with a specific focus on solar and wind power projects in Vietnam during the 2019–2022 period. Data reveal a significant decline in renewable energy bond issuance since 2021, highlighting critical challenges related to bond maturity structure, liquidity constraints, and legal frameworks. Based on these findings, the paper proposes several policy and institutional recommendations to address financial bottlenecks and promote the sustainable development of Vietnam’s green capital market.