The State Securities Commission (SSC) and the German Federal Enterprisesfor International Cooperation, better known as GIZ, will collaborate todevelop a green capital market.
The collaboration will takeplace under a new cooperation framework of the MacroeconomicReform/Green Growth Program during 2015 to 2017.
This was revealed during the workshop on "Support for Development of Capital Market in Vietnam" in Hanoi on April 23.
Witha focus on green financial sector reform, the program aims to developpolicies and regulations to facilitate capital mobilization in thecapital market for green investments.
Michael Krakowski, GIZ'sChief Technical Advisor and program Director in Vietnam, said GIZ willsupport SSC and market participants to develop a green listing policy,which sets disclosure requirements on the green investment portfolio bylisted companies and implements corporate social responsibility in theform of a code of conduct for the capital market.
GIZ has alsohelped develop concepts for green financial products, including greenindices, green bonds, green investment funds and certificates, in orderto meet demand for financial products that are resilient to climatechange.
"These financial products will allow investors to make apositive impact on society and the environment, while pursuing theirfinancial targets," Krakowski said.
The green economicdevelopment model has become a common trend in the global economy but isstill new in Vietnam. However, the Vietnamese Government has realisedthe importance of green growth and made it a key focus in a Resolutionon the socio-economic development strategy during 2011 to 2020 and undera five-year development plan for 2015.
According to theHochiminh Stock Exchange, there are currently 308 companies listed onthe exchange with a total market capitalisation of around 47 billionUSD, accounting for nearly 88 per cent of the total marketcapitalization of the country's stock market.
"All listedcompanies on the HCM City's exchange are large companies that couldrepresent the Vietnamese economy. If they all become green, I trust theoutreach of the ‘green economy' would be extremely significant," said arepresentative from the Hochiminh Stock Exchange.
Jochem Lange,country director, GIZ Vietnam, said financing sustainable developmentand green growth was challenging for the banking system and the capitalmarket of Vietnam and he suggested this process should engage theprivate sector towards Green Growth.
During the past two decades,SSC and GIZ have co-operated in the framework of the "Financial SystemDevelopment" action under the GIZ Macroeconomic Reforms Program, whichhas focused on supporting Vietnam for the establishment of a legalframework for market operations, human resource training and developingnew products.-VNA
The collaboration will takeplace under a new cooperation framework of the MacroeconomicReform/Green Growth Program during 2015 to 2017.
This was revealed during the workshop on "Support for Development of Capital Market in Vietnam" in Hanoi on April 23.
Witha focus on green financial sector reform, the program aims to developpolicies and regulations to facilitate capital mobilization in thecapital market for green investments.
Michael Krakowski, GIZ'sChief Technical Advisor and program Director in Vietnam, said GIZ willsupport SSC and market participants to develop a green listing policy,which sets disclosure requirements on the green investment portfolio bylisted companies and implements corporate social responsibility in theform of a code of conduct for the capital market.
GIZ has alsohelped develop concepts for green financial products, including greenindices, green bonds, green investment funds and certificates, in orderto meet demand for financial products that are resilient to climatechange.
"These financial products will allow investors to make apositive impact on society and the environment, while pursuing theirfinancial targets," Krakowski said.
The green economicdevelopment model has become a common trend in the global economy but isstill new in Vietnam. However, the Vietnamese Government has realisedthe importance of green growth and made it a key focus in a Resolutionon the socio-economic development strategy during 2011 to 2020 and undera five-year development plan for 2015.
According to theHochiminh Stock Exchange, there are currently 308 companies listed onthe exchange with a total market capitalisation of around 47 billionUSD, accounting for nearly 88 per cent of the total marketcapitalization of the country's stock market.
"All listedcompanies on the HCM City's exchange are large companies that couldrepresent the Vietnamese economy. If they all become green, I trust theoutreach of the ‘green economy' would be extremely significant," said arepresentative from the Hochiminh Stock Exchange.
Jochem Lange,country director, GIZ Vietnam, said financing sustainable developmentand green growth was challenging for the banking system and the capitalmarket of Vietnam and he suggested this process should engage theprivate sector towards Green Growth.
During the past two decades,SSC and GIZ have co-operated in the framework of the "Financial SystemDevelopment" action under the GIZ Macroeconomic Reforms Program, whichhas focused on supporting Vietnam for the establishment of a legalframework for market operations, human resource training and developingnew products.-VNA
