Research on World Agricultural Economy

The transition toward sustainable agriculture requires substantial financial resources aligned with environmental and social objectives. Green finance has emerged as a critical instrument for mobilizing such resources; however, the mechanisms by which institutional, technological, and market forces shape green finance and translate into sustainable agricultural development remain underexplored, particularly in emerging economies. This study investigates the determinants of green finance and its role in promoting sustainable agricultural development in Vietnam. Using a mixed-methods approach, qualitative interviews with 45 experts in green farm economics and agrarian project financing were conducted first to develop context-specific measurement scales. Subsequently, a large-scale survey of 900 respondents from farm cooperatives, agricultural enterprises, green project participants, and green supply chain actors was conducted. The proposed research model was tested using partial least squares structural equation modeling (PLS-SEM). The results reveal that environmental regulation pressure is the most influential driver of green finance, followed by stakeholder and market ESG pressure and digital financial inclusion. Green finance significantly promotes sustainable agricultural development and serves as a key transmission mechanism linking institutional, technological, and market factors to sustainability outcomes. Moreover, green supply chain requirements and ESG governance and transparency significantly strengthen the effectiveness of green finance and policy instruments. This study contributes to the literature by integrating green finance, ESG governance, and supply chain perspectives into a unified framework and provides important policy implications for promoting sustainable agriculture in emerging economies.