The article aims to investigate the impact of green credit on the sustainable economy in transition countries such as Vietnam. By using the Augmented Dickey-Fuller (ADF) test to evaluate the stationarity of variables and the Autoregressive Distributed Lag (ARDL) model to investigate the impact of green credit on the sustainable economy in Vietnam based on the secondary data obtained from the period spanning from 2016 to June 2023. The findings demonstrate a positive correlation between the use of green credit and the development of a sustainable economy in Vietnam. Moreover, other variables that have an impact on the sustainable economy including urbanization rate, education, public budget, and environmental pollution rate are also used as control variables of the model. The results indicate a negative association in the long run between the urbanization rate and a sustainable economy, while education has a positive effect on developing the economy sustainably in Vietnam. According to these findings, some recommendations are proposed to establish a green credit system as a means to attain sustainable economic development.
