The Role of Microfinance in Supporting Green Entrepreneurship in Vietnam

This research examines the role of microfinance in supporting green entrepreneurship in Vietnam, addressing the gap in previous studies that have largely overlooked the financial challenges and opportunities for sustainable businesses. The study aims to assess the accessibility, effectiveness, and limitations of microfinance for green entrepreneurs by conducting 18 semi-structured interviews with entrepreneurs, microfinance institutions (MFIs), and policymakers, along with field observations of four green businesses. The findings reveal that while microfinance provides essential support, its impact remains limited due to high-interest rates, short repayment periods, regulatory constraints, and limited financial literacy. However, successful case studies highlight that with targeted financial incentives, innovative funding models like impact investing and crowdfunding, and capacity-building programs, microfinance can be a powerful tool for fostering sustainable businesses. These results emphasize the need for policy reforms, public-private partnerships, and enhanced financial education to expand green microfinance, which could accelerate Vietnam’s transition to a greener economy by making financial support more accessible and impactful.