“the The impact of green finance, foreign direct investment, renewable energy consumption and industrial structure on green innovation: Evidence from Vietnam impact of green finance,

Abstract

The research aims to analyze the impact of green finance, foreign direct investment, renewable energy consumption, and industrial structure on green innovation in Vietnam during the period 2005–2023. Utilizing data from reliable sources, including Vietnamese government agencies, international organizations, and other authoritative institutions, along with the application of econometric methods such as unit root test, OLS and VECM regression models, this research examines both short and long-term relationships among these factors. The research provides empirical evidence on how aforementioned factors drive green innovation. The findings reveal that green finance and FDI have a positive and significant impact on green innovation in the short run, while renewable energy consumption and FDI positively influence green innovation in the long run. On the other hand, industrial structure does not exhibit a significant impact on green innovation. These results emphasize the need to enhance green finance mechanisms, attract sustainable FDI, and promote industrial transformation aligned with environmental goals in Vietnam. Furthermore, the study offers insights for national policymakers to develop appropriate strategies for tackling global environmental issues in the context of industrialization and modernization.