Hanoi (VNA) – In efforts to develop a green and circular economy, Vietnam istaking steps to boost green credit, the Lao dong (Labour) daily reported.
Giventhe importance of green credit to sustainable economic development, the PrimeMinister issued the national green growth strategy for 2021 - 2030 with avision to 2050, and the development strategy for the banking sector by 2025with orientations towards 2030, which includes orientations for green creditand green banking.
Bythe end of 2022, outstanding credit for green projects approximated 500trillion VND (21.3 billion USD), accounting for some 4.2% of total outstandingloans. It focuses on such fields as renewable and clean energy (47%) and greenagriculture (over 30%).
LastFebruary, a sustainable loan framework was issued by a Vietnamese bank for thefirst time. The framework of the Joint Stock Commercial Bank for Investment andDevelopment of Vietnam (BIDV), built with advice from many major internationalfinancial institutions, is considered a contribution to the implementation ofthe Vietnamese Government’s commitment to achieve the target of net zeroemissions by 2050.
BIDVDirector General Le Ngoc Lam said the framework will help his bank providesustainable financial products matching international standards for domesticbusinesses. It will also serve as a basis for BIDV to enhance cooperation insustainable development with international organisations.
Topromote green credit, MA Nguyen Thi Anh Ngoc from the University of EconomicsHo Chi Minh City held that it is necessary to diversify green credit products,which will help banks attract a wide range of clients and improvecompetitiveness. Banks should tailor those products to the need of each type ofenterprises.
However,she noted banks also need to take into account their existing resources duringproduct diversification, or they can face operational inefficiency./.
Giventhe importance of green credit to sustainable economic development, the PrimeMinister issued the national green growth strategy for 2021 - 2030 with avision to 2050, and the development strategy for the banking sector by 2025with orientations towards 2030, which includes orientations for green creditand green banking.
Bythe end of 2022, outstanding credit for green projects approximated 500trillion VND (21.3 billion USD), accounting for some 4.2% of total outstandingloans. It focuses on such fields as renewable and clean energy (47%) and greenagriculture (over 30%).
LastFebruary, a sustainable loan framework was issued by a Vietnamese bank for thefirst time. The framework of the Joint Stock Commercial Bank for Investment andDevelopment of Vietnam (BIDV), built with advice from many major internationalfinancial institutions, is considered a contribution to the implementation ofthe Vietnamese Government’s commitment to achieve the target of net zeroemissions by 2050.
BIDVDirector General Le Ngoc Lam said the framework will help his bank providesustainable financial products matching international standards for domesticbusinesses. It will also serve as a basis for BIDV to enhance cooperation insustainable development with international organisations.
Topromote green credit, MA Nguyen Thi Anh Ngoc from the University of EconomicsHo Chi Minh City held that it is necessary to diversify green credit products,which will help banks attract a wide range of clients and improvecompetitiveness. Banks should tailor those products to the need of each type ofenterprises.
However,she noted banks also need to take into account their existing resources duringproduct diversification, or they can face operational inefficiency./.
VNA
