The Risk of “Financial Greenwashing” in Green Capital-Raising Activities in Vietnam: Identification, Mechanisms and Control Solutions

Vietnam’s green capital market is growing rapidly across both green credit and green bond channels in order to meet the financing needs of the net-zero emissions (Net Zero) target by 2050. However, the pace of market development has far outstripped supervisory capacity, creating conditions for the risk of financial greenwashing. Using a desk research method – synthesis, analysis, evaluation and comparison – this study identifies the nature of financial greenwashing, systematises four mechanisms arising along the green capital-raising lifecycle, and proposes a control framework that links each risk point to a responsible party and a corresponding instrument. The findings contribute to connecting the concept of financial greenwashing with the requirement of integrity in Environmental – Social – Governance (ESG) practice, while providing a reference basis for refining the green taxonomy, the independent verification mechanism and the sanction regime in Vietnam.