GREEN FINANCE IN DA NANG – STRATEGIC POSITIONING FROM THE CARBON MARKET NICHE
As the Government and local authorities accelerate efforts to bring Vietnam’s International Financial Center (IFC) into operation, green finance has emerged as a strategic focal point in the country’s sustainable economic development agenda, particularly in Da Nang City.
Positioning Green Finance
As one of the two key hubs of the International Financial Center, Da Nang has been entrusted with the responsibility of developing green finance under Resolution No. 29-NQ/TU of the Da Nang Party Committee and the Resolution of the National Assembly adopted on June 27, 2025. The establishment of the green finance pillar not only strengthens Vietnam’s commitment to achieving net-zero emissions by 2050, but also provides a foundation for Da Nang to affirm its position as a national ecological, smart, and sustainable city.
Green finance has been identified as one of the three core pillars, alongside digital finance and cross-border financial services, in the development strategy of the International Financial Center. Da Nang aims to build a sustainable financial ecosystem in which capital flows not only drive economic growth but also generate benefits for the environment and the community. This orientation includes the development of green financial instruments and services such as carbon credit exchanges, green investment funds, and financial products supporting renewable energy, eco-tourism, and the marine economy.
Designating green finance as a strategic pillar enables Da Nang to shape a professional brand for its International Financial Center, closely aligned with a sustainable development model, while affirming Vietnam’s pioneering role in the regional green economy
The Advantage of Targeting the Voluntary Carbon Market Niche
From the perspective of a financial researcher, Associate Professor Dr. Đặng Tùng Lâm, Editor-in-Chief of the Journal of Economic Science, University of Economics (The University of Danang), argues that Da Nang should pursue a strategic niche in the carbon credit market, particularly the voluntary segment. According to him, the city possesses four major advantages for developing this market.
First, the sandbox regulatory mechanism provides Da Nang with room to pilot new models under the International Financial Center framework. The city is permitted to establish a voluntary carbon exchange, issue digital asset identifiers for carbon credits, or test new MRV (Measurement, Reporting, and Verification) models. This represents a critical prerequisite - one that other cities may lack - for taking the lead in setting national standards for carbon trading and credit transparency.
Second, Da Nang has a strong digital foundation. Its e-government ecosystem, data centers, and technology community form an essential base for building and operating a transparent carbon market. Technologies such as blockchain for credit authentication, and AI combined with satellite imagery for monitoring, measurement, and verification, have demonstrated their effectiveness in Singapore and the European Union. With its existing infrastructure, Da Nang is well positioned to rapidly deploy such systems in line with international standards.
The third advantage stems from geographical factors. Central Vietnam and the Central Highlands possess substantial natural carbon reserves, with significant areas of natural forests and diverse ecosystems.
At the same time, the region enjoys notable advantages in renewable energy, with large-scale wind and solar power projects in provinces such as Quảng Trị, Quảng Ngãi, Gia Lai, and Đắk Lắk. These projects can generate emissions-reduction carbon credits if properly certified. This regional resource advantage allows Da Nang not only to act as a trading intermediary like Singapore, but also to participate across the carbon credit value chain, including credit trading, high-quality credit development, and ensuring a stable supply of green credits closely linked to local sustainable development.
Fourth, Da Nang’s livability and favorable geo-economic location are important strengths that support the attraction of high-quality human resources in finance, technology, and environmental fields. This is a necessary condition for building a professional and sustainable carbon market.
With these four advantages, Da Nang has the potential to develop a model that both trades and generates high-quality carbon credits, positioning the city to become a future ASEAN carbon hub.
Toward a Regional-Scale Green Financial Center in Da Nang
To realize these goals, according to Associate Professor Dr. Đặng Tùng Lâm, Da Nang needs to focus on several key solution groups. First is the completion of a flexible legal framework and the operation of pilot mechanisms dedicated to carbon finance. The city should establish a specialized coordinating body to ensure transparency, consistency, and to avoid fragmentation of data and processes.
In parallel, Da Nang must invest in modern trading infrastructure, apply digital technologies, and build an MRV system that meets international standards to ensure that carbon credits are credible and globally recognized. This is a crucial condition for attracting international investors.
Another important task is the development of interdisciplinary human resources combining finance, technology, and environmental expertise. This requires close cooperation among government agencies, universities, research institutes, and international organizations. Through such collaboration, the city can form a pool of experts capable of engaging in activities ranging from project validation to exchange operations and credit assessment.
In addition, Da Nang needs to attract strategic investors and gradually build a regional green finance brand. When operated in a coordinated and integrated manner, the Da Nang International Financial Center can become a key nexus for green capital flows and carbon credit markets at both the national and regional levels.
Source: Da Nang Newspaper