Join hands to create a financial system for a green future for Vietnam

At the same time, the State Bank also officially announced the Handbook on environmental-social risk management system in credit granting activities compiled by the State Bank in coordination with the International Finance Corporation.

The seminar was held live and online with the State Bank of the regions. Dr. Dao Minh Tu, Permanent Deputy Governor of the State Bank chaired.

Also attending the seminar were Dr. Michaela Baur, Country Director of the German International Cooperation Agency in Vietnam; Mr. Dennis Quennet, Director of Sustainable Economic Development of the International Finance Corporation in Vietnam; Mr. Andri Meier, Deputy Head of the Development Cooperation Agency, Embassy of Switzerland in Vietnam; representatives of leaders of ministries, branches, organizations, international experts and credit institutions.

The seminar focused on discussing solutions to promote green credit, to remove current difficulties and challenges, as well as to spread good lessons and good practices in implementing green credit for the banking system in Vietnam.

According to Deputy Governor of the State Bank of Vietnam Dao Minh Tu, green growth is no longer an option but has become an urgent requirement for countries, especially developing countries like Vietnam.

“Therefore, switching to a green growth model - economic development combined with environmental protection and efficient use of resources - is not only an inevitable trend but also the shortest path for Vietnam to move towards a sustainable and prosperous future,” Deputy Governor Dao Minh Tu affirmed.

Speaking at the seminar, Dr. Michaela Baur, Country Director of the German Organization for International Cooperation in Vietnam, emphasized: Today's event has special significance in the context of 2025 marking the 50th anniversary of establishing diplomatic relations between Vietnam and Germany.

“2025 is also a pivotal year to review the five-year implementation of Vietnam’s National Strategy on Green Growth. On behalf of the German government , the German Agency for International Cooperation will always accompany Vietnamese and international partners on the journey towards a more prosperous, greener Vietnam where no one is left behind. A strong green financial system will be an important foundation to help us achieve that goal,” said Mr. Michaela Bau.

The seminar also attracted the cooperation of German financial institutions, sharing international experience in implementing green finance and German experience in accessing green finance sources, from the perspective of development finance, public finance and promoting private sector development.

Permanent Deputy Governor of the State Bank Dao Minh Tu speaks.

According to the State Bank, outstanding credit for green sectors of the banking system has grown rapidly in both scale and speed. From outstanding green credit in 2017 reaching only 180 trillion, by March 31, 58 credit institutions had generated outstanding green credit with outstanding debt reaching more than 704,244 billion VND, an increase of 3.57% compared to the end of 2024, accounting for 4.3% of total outstanding debt of the whole economy, focusing mainly on renewable energy, clean energy (accounting for more than 37%) and green agriculture (more than 29%); the average growth rate of outstanding green credit reached more than 21.2%/year in the period 2017-2024, higher than the credit growth rate of the whole economy.

Regarding the assessment of social and environmental risks in credit granting activities of credit institutions: As of March 31, there were 57 credit institutions with outstanding credit balances assessed for social and environmental risks reaching VND 3.62 million billion, an increase of nearly 1% compared to the end of 2024 with the number of items assessed for social and environmental risks reaching nearly 1.3 million items, an increase of more than 15 times compared to the time of implementation in 2017.

The event also witnessed the launch of the Environmental and Social Risk Management System (ESMS) Handbook compiled by the State Bank in collaboration with the International Finance Corporation.

The Handbook is developed based on international practices, aiming to support credit institutions in building and effectively operating an environmental-social risk management system in credit granting activities, contributing to the implementation of environmental, social and governance (ESG) standards and towards sustainable finance in Vietnam.

Through the seminar, the State Bank, financial institutions and partners affirmed to further strengthen cooperation in promoting green and sustainable finance in the banking sector and contributing to the goal of developing a green, inclusive and sustainable economy in Vietnam.

On the part of the State Bank, in the coming time, on the basis of closely following the socio-economic development goals, the National Strategy on Green Growth and the assigned tasks in the Project, Strategy, Action Plan on Green Growth, Climate Change Response, and the Prime Minister's Directive on promoting the implementation of the National Strategy on Green Growth, the State Bank will continue to implement solutions and policies to promote the banking sector's activities towards the goal of green growth and climate change response.

Specifically: Continue to manage credit growth reasonably, directing credit to production and business sectors, priority sectors, economic growth drivers according to the Government's policy (including traditional and new drivers), supporting the economy to achieve a growth rate of 8% or more;

Continue to review and complete the legal framework and guidelines on green credit, including proposing amendments and supplements to preferential credit mechanisms and policies to encourage the development of high-tech agriculture, organic agriculture, and agriculture following the circular economic model; direct credit institutions to focus capital sources and create conditions for businesses, especially private businesses, to implement green, environmentally friendly projects and circular economic models;

Actively connect and work with domestic and foreign organizations to receive financial and technical support to implement green finance and green banking activities, especially to improve the capacity of banking staff on green banking and credit, climate change, etc.

Source: https://nhandan.vn/jointly-build-a-financial-system-for-a-green-future-for-viet-nam-post881235.html