Green Finance Adoption Using Planned Behaviour Theory: The Case of Vietnam

Abstract

This paper examines the motivation of firms in Vietnam to access green finance as opposed to traditional finance. It aims to identify the intentions behind accessing green finance and develop a model of factors influencing these intentions. The research addresses the limited participation of smaller economies like Vietnam in the global green finance market, despite an increasing demand for sustainable development. A successful green transformation requires substantial capital, and a well-structured financial market is crucial for this effort. Therefore, this study seeks to understand what drives firms in developing economies to adopt green finance. The research is based on a survey of 50 Vietnamese firms across various industries. Using pre-structured questions, it applies the Planned Behavior Theory (PBT) to create a model explaining the intention to adopt green finance. Factor analysis and logistic regression are employed to identify the main factors influencing these intentions. Results show that a positive attitude toward green finance, due to benefits like enhanced reputation and reduced financing costs, significantly affects firms' intentions to adopt green finance. Internal stakeholders, such as employees and shareholders, are key motivators, while external pressures may serve as obstacles. Interestingly, the availability of finance sources and stakeholder support did not emerge as significant predictors. The study suggests that policymakers should develop supportive regulations and that firms should engage internal stakeholders and increase awareness of green finance's benefits to promote its broader adoption in emerging economies like Vietnam.

https://doi.org/10.26803/MyRes.2024.20