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.