Sustainable vision associated with green economy
Green growth and the development of green economies are common trends in the world to ensure sustainable growth associated with eliminating environmental impacts. With human resources, natural resources and high growth rates, Vietnam is a country with a green economy full of potential. In particular, the marine economy and blue finance - an emerging climate finance sector associated with protecting the sea and water promises to become a trending wave in Vietnam - a country with a 3,260 km long coastline associated with the livelihoods of millions of people.
step by step "comprehensive greening of operations towards Green Banking"
According to Mr. Thomas Jacob - Country Manager for Vietnam, Cambodia and Lao PDR of the International Finance Corporation (IFC), Vietnam has great potential for development in the onshore and offshore wind energy sector as well as exploiting its rich marine resources. In the context of increasing demand for blue finance due to the growing interest of investors around the world, “This type of innovative finance brings opportunities for the Vietnamese financial sector. The transition to a climate-resilient and low-carbon economy requires large investment capital, at least half of which comes from the private sector. This is also the key to achieving Vietnam's Sustainable Development Goals, and at the same time an opportunity for the domestic banking sector to affirm its leading position in the market,” Mr. Thomas Jacob shared.
Accordingly, Vietnam has implemented national strategies on green growth in each phase with a vision to 2050, aiming to achieve zero net emissions by 2050. To meet the capital for environmental projects and achieve this goal, long-term funding of up to approximately 368 billion USD is needed, and the banking sector plays an important financial intermediary role in providing capital for the green economy.
Pioneering green financial development
As a member of the banking system, Southeast Asia Commercial Joint Stock Bank (SeABank) constantly expands international cooperation to attract foreign capital flows with a total amount of nearly 850 million USD from the world's leading financial institutions such as IFC, DFC, AIIB, Norfund... With the Bank's sustainable strategic vision and financial and professional support from experienced international partners, SeABank focuses on developing a green financial system to mobilize funding from the private sector for environmental projects that require large and long-term capital.
Sharing about the Bank's sustainable strategic vision, according to Ms. Le Thu Thuy - Vice Chairwoman of the Board of Directors: "SeABank aims to become a pioneer in linking the public and private sectors to create transparent and attractive opportunities for the market, promoting investments in Vietnam's blue economy. This will help businesses and small and medium enterprises have enough capital to develop and expand, especially businesses related to green projects".
Accordingly, SeABank pioneers the application of innovative financial instruments through the issuance of Vietnam's first blue bond and the first green bond issuance by a domestic private commercial bank to international financial institutions, IFC and AIIB, with a total value of up to USD 150 million. In addition, IFC will advise SeABank on the application of green and blue bond frameworks, identify green and blue assets eligible for financing, and build a portfolio of potential projects. Bonds issued for green and blue portfolios have longer maturities than conventional bonds, favorable terms, and long-term benefits for Vietnam's sustainable economy, in line with the orientation of increasing capital sources steadily in the medium and long term.
through the issuance of Vietnam's first blue bond
In addition, SeABank, together with IFC and AIIB, has provided necessary documents and guidelines on meeting project criteria, identifying green project portfolios eligible to support the green economy, translating general principles on financing the blue economy into guidelines for issuing blue bonds and blue loans... These are useful reference documents for stakeholders and interested parties, thereby creating the premise and paving the way for green economic development in Vietnam.
In addition to promoting international cooperation and developing green finance, SeABank also constantly consolidates its resources and solid foundation, gradually "greening" its operations in the direction of Green Banking such as: implementing the integration of the environmental and social risk management system (ESMS) into the credit process; prioritizing capital for green credit projects focusing on the energy sector; providing cheap capital for individual customers to buy houses and use products from green projects; and implementing many activities such as planting trees, collecting waste, etc. to contribute to combating climate change and protecting the environment.
With a sustainable strategic vision, SeABank will continue to promote green growth, focus on disbursing green capital, establishing cooperative relationships and expanding green customer base, connecting green projects... From there, the Bank will steadfastly pioneer in paving the way, contributing to the development and strong spread of the blue economic wave, gradually building SeABank into a sustainable financing brand in the Vietnamese market.
Source: https://baotainguyenmoitruong.vn/seabank-ngan-hang-tien-phong-don-dau-lan-song-kinh-te-xanh-lam-380579.html
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