Effective green finance access requires a suitable transition roadmap

Three major strategies for green development

BIDV General Director said that as one of the leading financial institutions in Vietnam, with total outstanding credit reaching over VND2 million billion, the bank has been playing an important role in providing capital for essential sectors of the economy - from infrastructure development, energy to industrial production and high technology. Realizing its commitment to sustainable development, BIDV has implemented three key strategic orientations: Comprehensive transformation and process streamlining; Sustainable development and ESG practices; Innovation and building a digital ecosystem.

Mr. Le Ngoc Lam informed that BIDV has been steadfastly implementing the ESG roadmap since 2018, with the development of a green credit orientation and pioneering the application of the Environmental - Social Risk Management Framework for projects using international capital. The period 2022-2024 marks a strong step forward for BIDV with the establishment of the Sustainable Finance Project Management Board; integrating environmental risk management into the credit process, issuing sustainable finance frameworks; establishing an ESG Strategy Steering Committee headed by the Chairman of the Board of Directors; implementing green credit products by sector, sustainability-linked loans, etc.

Thanks to the implementation of synchronous solutions, as of December 31, 2024, BIDV's green credit balance reached VND80,870 billion - accounting for more than 12% of the green credit balance of the entire Vietnamese banking industry. BIDV has sponsored green credit for 1,600 customers with 1,982 projects/plans, of which outstanding loans in fields such as renewable energy and clean energy reached nearly VND60,000 billion, accounting for 74%; outstanding loans for green buildings reached VND6,500 billion, accounting for 8%; outstanding loans for green industrial parks reached VND1,736 billion, accounting for 2% and outstanding loans for clean water reached VND1,174 billion, accounting for 1.5%. At the same time, BIDV has mobilized VND2,500 billion in green bonds, VND3,000 billion in sustainable bonds and VND5,000 billion in green deposits.

Many large green credit packages support businesses

BIDV leaders emphasized: “Recognizing the role of finance in promoting green growth and sustainable development, BIDV has pioneered the implementation of large-scale green credit packages with flexible incentive mechanisms to support businesses in implementing green transformation. Notably, the preferential medium- and long-term credit package of VND75,000 billion is outstanding, focusing on key areas such as renewable energy, construction and business of industrial parks, export processing zones, and development of logistics infrastructure.”

In addition, the bank also developed specialized credit packages by industry, such as the green construction credit package with a scale of VND 10,000 billion, the clean water credit package, with a maximum outstanding loan of VND 5,000 billion, the green credit package for the textile industry of VND 3,000 billion and USD 50 million. In particular, BIDV is one of the pioneering banks in developing sustainability-linked loans (SLL), linking interest rates to the level of completion of Sustainable Performance Goals.

Not only providing capital, Mr. Le Ngoc Lam added that BIDV also accompanies businesses through in-depth consulting services and provides updated information on ESG, including support in building green transformation strategies, planning to improve environmental and social performance, updating policies, regulations and trends in the domestic and international green financial market.

BIDV also plays a role in connecting and developing a multi-industry ESG partnership ecosystem. We build a network of cooperation with consulting, auditing, reputable ESG certification organizations, and green technology providers - helping businesses access appropriate resources and achieve international standards. In addition, BIDV expands international cooperation with multilateral financial and development organizations such as WB, ADB, IFC, GIZ, USAID to receive preferential capital and specialized technical support.

In the context of Vietnam accelerating the process of transforming its growth model towards green and sustainable growth, BIDV recognizes the role of financial institutions as an important driving force in creating an ecosystem to support businesses in successful transformation. In that spirit, the bank proposes 02 key groups of solutions:

Firstly, for the management agency, BIDV leaders recommended the need to complete the policy framework to support green businesses. Although Circular No. 05/2025/TT-BKHĐT of the Ministry of Planning and Investment has initially provided important guidelines on the development of ecological industrial parks, to truly promote the process of economic model transformation, stronger and more synchronous policies are needed. In particular, it is necessary to build breakthrough incentive mechanisms on tax, credit and investment for green businesses and businesses applying the circular economic model.

At the same time, BIDV recommends that the Government soon issue low-interest green credit packages for environmental protection, renewable energy, and clean technology projects; and establish a national green investment fund with the participation of both the public and private sectors, with clear criteria and transparent processes. Along with that, it is necessary to promote incentives for research and development (R&D) and application of environmental technology, support domestic enterprises to produce environmentally friendly products, and improve competitiveness in the international market.

Second, create a synchronous and effective green financial ecosystem. Close coordination between banks - enterprises - state management agencies is a prerequisite. On that basis, it is necessary to continue to perfect the legal framework for green financial instruments such as green bonds, green credit, green insurance, etc. with a unified system of criteria, easy to apply and closely following international practices.

Clear and transparent regulations will be the foundation for credit institutions such as BIDV to assess, classify and grant green credit in a more professional and effective manner. At the same time, it is necessary to promote the development of secondary markets for green financial products, helping to increase liquidity and make them more attractive to institutional investors.

For businesses, BIDV General Director Le Ngoc Lam recommends proactively innovating technology, digitizing production and management processes to optimize resource efficiency, reduce emissions and meet environmental requirements. Cooperation with financial institutions, technology partners and green transformation support organizations, along with training to raise awareness for human resources, will help businesses strengthen their internal capacity and create a solid foundation in the journey towards green and sustainable development.

Source: https://thoibaonganhang.vn/tiep-can-tai-chinh-xanh-hieu-qua-can-mot-lo-trinh-chuyen-doi-phu-hop-163955.html