This paper addresses dynamic bandwidth allocation for virtual network (VN) resources to respond to increasing or decreasing applications requirements in cloud environments. A distributed and local-view framework, composed of a controller and three algorithms running in substrate nodes, is proposed to deal with all types of bandwidth demand fluctuations in embedded virtual networks. The framework is based on the Self-Stabilization concept to drive the system back to a "stable state" when new bandwidth demands drift the system away into an "unstable state". Performance evaluation results demonstrate the effectiveness of our proposal in handling bandwidth demand fluctuations in convergence speed and cost