Regarding the issue of green growth, the State Bank of Vietnam has been tasked with completing the legal framework for green credit and banking. This is a high-priority task to be implemented during the 2021-2025 period. Over time, the State Bank has issued several documents, including the Project for Green Bank Development in Vietnam in 2018 and the Guidelines for Environmental Risk Management in 2023.
Commercial banks have also provided green credit packages, mainly for the energy, agriculture, forestry, and waste treatment industries. However, in reality, many businesses in sectors that need to transition from brown to green, amid the significant impact of natural disasters and climate change, have very limited information and face challenges in accessing green capital. So, Governor, how do you assess the completion of this task by 2025? Will it be able to meet the timely needs of businesses’ green transition?
 Representative Le Dao An Xuan – Phu Yen Province NA Delegation
|
Responding to Representative Le Dao An Xuan from Phu Yen province regarding green credit, Governor Nguyen Thi Hong affirmed that environmental protection is a critical issue in sustainable development and is a concern for countries worldwide. For Vietnam, the Central Committee, the Party, State, National Assembly, and Government leaders also pay special attention to this issue.
Regarding the SBV, Governor Nguyen Thi Hong emphasized that based on the Central Committee’s resolutions, the National Assembly’s resolutions, and the Government’s implementation plans, the SBV has issued directives and documents to encourage credit institutions to focus resources on providing green credit, implement solutions for environmental risk management when credit institutions provide credit, and perfect mechanisms and policies to contribute to achieving green growth goals. The Governor also mentioned that the SBV has issued action plans, assigned tasks to agencies and units within the system, and implemented specific credit programs to contribute to the efficient use of green growth.
In 2017, only five credit institutions participated in green credit, but now 50 credit institutions have green credit outstanding balances, totaling about VND 650 trillion. Of this, credit for renewable and clean energy accounts for about 45%, and for clean and green agriculture accounts for 30%. Notably, the outstanding credit balance of credit institutions when assessing environmental risks has increased to about VND 3.2 quadrillion out of the total outstanding balance of the whole system of VND 15 quadrillion.
However, Governor Nguyen Thi Hong also pointed out that the SBV currently faces challenges and obstacles as the banking system needs guidance from relevant ministries and sectors on the green classification list, which credit institutions can refer to when providing credit. Meanwhile, investing in green sectors such as renewable and clean energy requires substantial capital and long-term investment, which is a challenge for the banking system, given the short-term nature of its mobilized capital.
Therefore, in the coming time, the SBV will continue to pay attention to implementing the Prime Minister’s plan, especially when the Prime Minister approves the green classification list. The SBV will then guide credit institutions in providing green credit and monitor the implementation, evaluating environmental risks. If any problems arise, the SBV will make adjustments accordingly.
Solutions for credit activities associated with environmental protection and green economic development goals
Raising the issue of questioning, Delegate Dang Bich Ngoc said that Vietnam is a country heavily affected by climate change, such as storms, floods, and natural disasters. This requires that the bank’s credit activities be associated with environmental protection and green economic development goals.
However, in reality, the implementation of credit activities regarding this content still faces many difficulties and obstacles. The delegate asked the Governor of the State Bank to provide solutions to direct the effective implementation of this task.
 Delegate Dang Bich Ngoc – Hoa Binh Province NA Delegation
|
Answering the question of Delegate Dang Bich Ngoc from Hoa Binh province, Ms. Nguyen Thi Hong, Governor of the State Bank of Vietnam, said that Vietnam is a country heavily affected by climate change. The recent storm and flood situation has required agencies and sectors to focus on reviewing solutions to respond effectively. The banking industry has many solutions to this issue, especially the deployment of green credit. The State Bank has issued plans to implement and achieve specific results.
“Green Loans: Unlocking Sustainable Opportunities”
Despite the strong commitment demonstrated by banks to promote green credit, the outstanding balance in this area remains merely “symbolic”.
“Sustainable Agriculture in Thanh Hoa: Embracing Green Practices for a Prosperous Future”
Organic farming practices are gaining traction among households and cooperatives in Thanh Hoa province. By embracing eco-friendly and sustainable agricultural methods, they are producing goods that are not only safe for consumers but also environmentally conscious. This approach is pivotal to fostering long-term growth in the agricultural economy, minimizing environmental footprints, and promoting the well-being of the community.
“Empowering the Sustainable Evolution of the Textile and Footwear Industries”
The Memorandum of Understanding between the Ministry of Industry and Trade and IDH on supporting the sustainable development of Vietnam’s textile and footwear industries will enhance the competitiveness of domestic textile and footwear enterprises. It will also contribute to Vietnam’s international commitments on sustainable development and climate change in the coming years.
The Chairman of TTC AgriS Seeks Additional $42 Million from Two European Financial Institutions
With a successful fundraising of $270 million in just over a year, TTC Agri Chairman Dang Huynh Uc My is a force to be reckoned with. This impressive feat was achieved with the recent addition of $42 million from SACE S.p.A and ING-DiBa AG, showcasing the company’s and My’s exceptional financial prowess and strategic vision.
The Green Age of IR: A “Greening” Strategy and Capital Attraction for Vietnamese Enterprises
At the IR View seminar on ‘greening’, held as part of the IR Awards 2024 ceremony on the morning of September 24, leaders from VietinBank, PAN Group, Vinamilk, and ACB revealed their secrets to attracting international capital. They shared insights on effective Investor Relations (IR) practices and their strategies for sustainable development in the new era of a green economy.
