International financial center will be a boost for green finance

(NLDO) – According to a World Bank report, Vietnam needs to invest about 6.8% of GDP each year, equivalent to 368 billion USD until 2040.

The international financial center being developed in Ho Chi Minh City plays an important role in mobilizing green capital for businesses, banks and the economy . This is the opinion expressed by Associate Professor, Dr. Nguyen Huu Huan, University of Economics Ho Chi Minh City (UEH) at the International Conference "Opening the international green capital market - Promoting sustainable development and financial inclusion in Vietnam", organized by Nam A Commercial Joint Stock Bank (Nam A Bank) in Da Lat - Lam Dong on September 5.

According to a World Bank report, Vietnam needs an investment of about 6.8% of GDP per year, equivalent to 368 billion USD until 2040 to achieve the goal of moving towards a green economy and net zero emissions by 2050.

Attractive destination for green capital

In this context, Mr. Tran Khai Hoan, Member of the Board of Directors and Acting General Director of Nam A Bank, said that the conference was organized by Nam A Bank to connect and exploit green capital - comprehensive finance, towards sustainable development.

Vietnam has strongly demonstrated its commitment to achieving Net Zero by 2050 in parallel with its strategy to promote financial inclusion and private economic development. This is both a challenge and an opportunity for Vietnam to become an attractive destination for global green capital flows; there is an urgent need for an inclusive financial ecosystem with the private economic sector playing a key role.

"Not outside the flow of this global trend, Nam A Bank is pioneering in promoting green financial solutions. With a transparent governance platform according to international standards, Nam A Bank is committed to becoming a model sustainable development bank in the private economic sector of Vietnam, accompanying the Government and the international community in the journey to promote sustainable development and financial inclusion in Vietnam" - Mr. Tran Khai Hoan said.

Mr. Tran Khai Hoan, Member of the Board of Directors and Acting General Director of Nam A Bank, shared at the conference

In fact, the green financial market in Vietnam is facing many barriers that need to be focused on removing.

Mr. Nguyen Quoc Hung, Vice Chairman and General Secretary of the Vietnam Banking Association, analyzed that the number of enterprises mobilizing resources from international organizations to improve capacity and invest in technology to meet ESG standards is still modest. The proportion of outstanding green credit accounts for less than 4.5% of total outstanding loans. In the past 5 years, only 1.16 billion USD of green bonds have been issued, a modest proportion compared to the capital demand of about 20 billion USD on average per year to implement green transformation goals.

One of the solutions considered as a boost, opening the way for the economy to mobilize international green capital to promote green finance, is the process of implementing an international financial center in Vietnam, which is being implemented in Ho Chi Minh City and Da Nang.

Great opportunities from international financial center

As a member of the Advisory Working Group for the construction and development of the Vietnam International Finance Center in Ho Chi Minh City, Associate Professor Dr. Nguyen Huu Huan said that the international finance center will contribute to promoting green financial capital flows. Previously, when there was no international finance center, commercial banks would have to go abroad to find investment funds and financial institutions to mobilize international capital. After that, these banks would re-finance green capital flows for businesses...

Experts and speakers shared at the conference

"The international financial center in Ho Chi Minh City will create hubs (destinations), especially international investment funds and international financial institutions will come and invest capital. The financial center will also build a portfolio of green financial projects so that investment funds do not need too much time to search. When there is a market, specific laws and policies, it will increase the transparency of the market, helping investment funds to disburse quickly" - Associate Professor Dr. Huan said.

The international financial center will have a green financial market, green bonds and carbon credits; including loans labeled as financial centers... In the near future, regulations will be issued such as approving financial center membership status in just 1-7 days, creating favorable conditions for international investors to boost investment in Vietnam without having to worry about too many procedures.

Many domestic and international investment funds and foreign financial institutions participated in the conference, aiming to connect and exploit green capital - comprehensive finance for sustainable development.

Source: https://nld.com.vn/trung-tam-tai-chinh-quoc-te-se-la-cu-hich-cho-tai-chinh-xanh-196250905124948123.htm