Green Deposits - Investing in a Green Future

ESG - an inevitable trend worldwide and in Vietnam.

Currently, the world is facing major challenges regarding climate change and environmental pollution. Leading international organizations such as the United Nations (UN), the International Monetary Fund (IMF), and the World Bank (WB) have successively launched the 17 Sustainable Development Goals (SDGs), along with legal frameworks and financial and technical support projects to guide countries in cooperating and investing in projects that have a positive impact on the environment. In Vietnam, the Government has taken concrete actions, demonstrated by its participation in international conferences of the Parties to the United Nations Framework Convention on Climate Change (COP), along with strong commitments to achieving net emissions of "zero" by 2050 and participation in the "Global Cooling Commitment" initiative. This demonstrates that Vietnam does not view environmental, social, and governance (ESG) factors merely as a trend, but that ESG is now seen as a key to strong and long-term development in all sectors .

In the context of the shift towards sustainable development, the demand for capital to support ESG goals worldwide, and in Vietnam in particular, is growing significantly. The World Bank (WB) states that by 2040, to achieve green growth and net zero emissions, Vietnam will need an additional 6.8% of GDP in annual investment, equivalent to approximately US$368 billion. This indicates a strong increase in demand for ESG capital in Vietnam. To meet this demand, reforms in the financial structure and policies are necessary, along with close cooperation between the government, banks, and businesses.

BIDV - a pioneer in the green finance market.

As one of the leading financial institutions in Vietnam, BIDV understands its responsibility to work alongside the Government in fulfilling its commitments to combating climate change. BIDV has been a pioneer and market leader in green finance, demonstrating its responsibility to the community and contributing to the transformation of the economy towards green and sustainable development. By the end of 2023, BIDV was one of the largest green credit providers in the market with a total outstanding loan balance of over VND 74,000 billion, accounting for approximately 4.2% of BIDV's total outstanding loans and 12% of the total green credit outstanding in the entire economy. The end of 2023 also marked the successful issuance of green bonds by BIDV in Vietnam under the principles of the International Capital Markets Association (ICMA) in the domestic market, with a scale of VND 2,500 billion.

Green Deposits - A Green Future

Following the success of its Green Bond issuance, BIDV continues to pioneer the launch of its Green Deposit product. Through this product, BIDV commits that customers' deposits will be used to finance green projects, energy saving, clean energy, renewable energy, emission reduction, and environmental protection. The Green Deposit program has a capital mobilization scale of VND 3,000 billion in the first phase of 2024, with flexible deposit terms from 6 months onwards.

Through investing in Green Deposit products, businesses have demonstrated a strategic vision for sustainable development, building a reputation and image that reflects responsibility towards the environment and the community. This contributes to increasing the business's ability to attract investment capital, gain a competitive advantage, expand market access, and attract customers.

Businesses using the Green Deposit product will be issued a certificate by BIDV, and BIDV will transparently disclose projects using capital raised from Green Deposits in its annual report on the official BIDV website (www.bidv.com.vn).

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