Enhancing Vietnam’s financial policies for climate change response: Gaps, challenges, and legal recommendations

Abstract

This article investigates Vietnam’s financial policies in the context of climate change response, focusing on their objectives, methodologies, and outcomes. The primary aim is to analyze the use of fiscal tools such as carbon taxes and financial instruments like green bonds to support climate adaptation and mitigation efforts. Employing a qualitative approach, the study integrates doctrinal legal analysis and comparative methods to evaluate Vietnam’s regulatory frameworks against international best practices. The findings indicate significant limitations, including the lack of a dedicated carbon tax and underdeveloped guidelines for green bond issuance, particularly for local authorities. These gaps hinder Vietnam’s ability to mobilize financial resources effectively and address climate-related challenges. The study concludes by offering targeted recommendations, such as implementing a carbon tax policy aligned with global standards and strengthening regulations on green bonds to ensure transparency and accountability. These improvements are crucial for enhancing Vietnam’s resilience to climate change and achieving sustainable development goals.