* Corresponding author.
E-mail address: nhungdh@gmail.com (H. N. Do)
© 2020 by the authors; licensee Growing Science, Canada.
doi: 10.5267/j.dsl.2020.4.002
Decision Science Letters 9 (2020) 365–386
Contents lists available at GrowingScience
Decision Science Letters
homepage: www.GrowingScience.com/dsl
The factors affecting green investment for sustainable development
Thi Thanh Tu Tran
a
, Hong Nhung Do
b*
, Thi Ha Vu
b
and Nguyen Nguyet Minh Do
a
a
University of Economics and Business, Vietnam National University, Hanoi, Vietnam
b
National University of Economics, Vietnam
C H R O N I C L E A B S T R A C T
Article history:
Received February 23, 2020
Received in revised format:
March 29, 2020
Accepted April 23 2020
Available online
April 23, 2020
In every nation's Green Growth Strategy, enterprise's green investment plays a vital role for
sustainable development. In order to develop green investment activity for sustainable
development, it is necessary to identify factors affecting green finance and sustainable
development of businesses. This study identifies and measures the factors affecting green
investment in Vietnamese using the Exploratory Factor Analysis (EFA) methodology to process
the dataset from 208 businesses in different industries in 2018.The results show that most of the
factors, which were included in the survey, were reliable, maintained statistical significance, and
converged into the group of factors. The factors in the survey includes Infrastructure for green
investment, Difficulties in approaching funding for green investment activities, Incentives to
access capital for green investment, Understanding of enterprises' green investment, Support
from the Government in accessing to fund for green investment, The capital that businesses can
access for green investment, The enterprise plans to implement green investment projects
actively and the special incentives of green investment. Notably, the group of factors about green
investment awareness, awareness on accessing green capital, the role of the Government, and
green capital mobilization tools had substantial impacts on the green investment implementation
of Vietnamese businesses. On that basis, the proposed recommendations focus on the central role
of the Government, the legal framework, the diversification of green financing, and green capital
mobilization tools. Raising awareness of businesses in accessing and using these capital raising
tools as well as promoting green investment communication are solutions according to the
evaluation of more than 200 surveyed enterprises.
. by the authors; licensee Growing Science, Canada 20 20 ©
Keywords:
Green investment
Sustainable development
Green capital
1. Introduction
Nowadays, post-crisis due to trade-offs between economic development and the environment is clearly
shown in many environmental reports, climate change, and sustainable development. Moreover,
climate change is becoming increasingly powerful, damaging the overall development of the economy,
creating ecological imbalances, and causing unsustainable development. Clearly, finding solutions to
climate change, which help governments, organizations, and businesses in achieving the growth goals
and reducing the impact on the environment, are urgent for all governments, organizations, and
businesses. The selection of green investment by companies is necessary for green growth economies
in general and Vietnam green growth strategy in particular. To overcome the losses caused by post-
crisis and climate change, besides the role of the financial banking system in restructuring the financial
system, restructuring the economy is undeniably essential in businesses. Clearly, when countries must
trade off climate change for economic development, businesses are nuclear in promoting green