On August 25, 2026, at the headquarters of the State Bank of Vietnam (SBV), the SBV, in collaboration with the German Agency for International Cooperation (GIZ), organized a training program with the theme of "Financing the Circular Economy.” The program aimed to update knowledge, enhance professional capacity, and facilitate the exchange of experience on mobilizing and allocating financial resources to support Vietnam’s transition to a circular economy.
The training program was attended by representatives from SBV units, credit institutions, the Vietnam Banks Association (VNBA), financial funds, as well as domestic and international experts and speakers. The program was organized within the framework of Vietnam – Germany cooperation, with the aim of strengthening the capacity of the financial system and promoting capital flows toward circular economy models and projects.
Mr. Phan Manh Cuong, Deputy Director General of the SBV Organization and Personnel Department, delivers his opening remarks at the training program
Delivering the opening remarks, Mr. Phan Manh Cuong, Deputy Director General of the SBV Organization and Personnel Department, emphasized that promoting the transition to a circular economy requires not only a sound policy framework and the active participation of the business community, but also adequate financial resources, with the banking system and financial institutions playing an important role.
However, financing the circular economy also presents new requirements for financial institutions, ranging from identifying circular business models and assessing associated risks to analyzing cash flows and developing appropriate risk-sharing mechanisms.
The training program therefore focused on providing participants with foundational knowledge of financing for the circular economy, while serving as a forum for discussion and exchange on financing models, policy mechanisms, and practical implementation experience.
Mr. Phan Manh Cuong, Deputy Director General of the SBV Organization and Personnel Department, delivers the opening remarks
Deputy Director General of the SBV Organization and Personnel Department encouraged participants to actively exchange views, engage in discussions, and share challenges and obstacles encountered in practice, thereby identifying appropriate solutions and applying the knowledge gained to their respective areas of work.
Ms. Ly Thu Nga, Head of the Green Financial Sector Reform Component under the Macroeconomic Reform/Green Growth Programme at GIZ, speaks at the training program
Speaking at the training program, Ms. Ly Thu Nga, Head of the Green Financial Sector Reform Component under the Macroeconomic Reform/Green Growth Programme at GIZ, noted that Vietnam is pursuing two major development goals: becoming a developed, high-income country by 2045 and achieving net-zero emissions by 2050.
To maintain economic growth while ensuring sustainable development, Vietnam needs to shift toward a development model that makes more efficient use of natural resources and energy while reducing emissions. In this process, the circular economy and circular solutions play an important role.
Head of the Green Financial Sector Reform Component under the Macroeconomic Reform/Green Growth Programme at GIZ shared that Germany’s Circular Economy Strategy, approved in December 2024, estimates that the transition to a circular economy could increase the country’s gross value added by approximately EUR 12 billion annually and create around 117,000 new jobs by 2030. The application of circular economy principles in the industrial sector alone is estimated to have the potential to reduce greenhouse gas emissions by around 30–50% by 2050.
According to the GIZ representative, these projections demonstrate that the transition to a circular economy cannot only contribute to emissions reduction but also generate additional economic value and employment opportunities.
From a business perspective, adopting circular economy models can help reduce raw material and energy costs, improve productivity, foster innovation, and enhance competitiveness. It can also enable Vietnamese businesses to participate more deeply in global value chains, particularly as markets such as the European Union increasingly impose stricter sustainability and circularity requirements.
For an open economy such as Vietnam, the transition to a circular economy is therefore linked not only to environmental commitments but also directly affects businesses’ ability to maintain and expand their export markets.
An overview of the training program
According to the Head of the Green Financial Sector Reform Component under the Macroeconomic Reform/Green Growth Programme at GIZ, Vietnam has gradually established a policy foundation for developing the circular economy. Among relevant policies and orientations, Resolution No. 68-NQ/TW, issued in May 2025 on private sector development, encourages technological innovation, the adoption of circular economy models, efficient resource use, and sustainable development.
However, as the circular economy differs fundamentally from the linear economic model that currently predominates, banks and financial institutions need to develop appropriate capabilities and tools to identify and assess the opportunities and risks associated with financing circular economy projects.
On this basis, GIZ is supporting the SBV and credit institutions in strengthening their capacity to identify and finance circular economy projects, while exploring appropriate financial instruments and policy mechanisms to promote capital flows into this sector.
Ms. Mira Nagy, Circular Economy Expert at GIZ Vietnam, speaks at the training program
In addition to supporting the financial sector, GIZ also works with industrial parks and industrial enterprises to identify transition opportunities and develop circular technologies, technical solutions, and business models. These efforts will enable the financial sector to gradually connect with the transition needs of the real economy.
In the coming time, GIZ will continue to work with regulatory authorities, the financial sector, and the industrial business community to gradually establish an ecosystem that promotes the development of the circular economy in Vietnam.
Ms. Ly Thu Nga, Circular Economy Expert at GIZ Vietnam expressed her hope that the training program would not only provide participants with knowledge and experience from domestic and international experts, but also create an opportunity for participants to bring practical issues from their respective organizations to the discussion, thereby identifying concrete solutions and opportunities for implementation.
The program is expected to contribute to strengthening the capacity of the financial system, fostering stronger linkages between the financial sector and the real economy, and creating additional momentum for mobilizing financial resources to support Vietnam’s transition to a circular economy.
Translated by Minh Khang