On August 16, 2022, in Hanoi, the State Bank of Vietnam (SBV) in collaboration with the Banking Working Group (BWG) and the Vietnam Business Forum (VBF) co-organized the "Conference to attract financial resources". resources to support the implementation of green development and sustainable development goals”. The conference was attended by SBV Governor Nguyen Thi Hong, SBV Deputy Governor Pham Thanh Ha, Deputy Minister of Planning and Investment Nguyen Thi Bich Ngoc, Deputy Minister of Natural Resources and Environment Le Cong Thanh, Chairman of BWG Michele Wee; representatives of leaders of ministries, branches, international organizations, corporations, large corporations, domestic and international banks...
Governor of the State Bank of Vietnam Nguyen Thi Hong speaks at the Conference
Speaking at the opening of the conference, Governor of the State Bank of Vietnam Nguyen Thi Hong said that in the context of climate change, which is becoming a great challenge for every country in the world, threatening the lives of tens of millions of people and financial resources. Many countries' assets are worth many trillions of dollars, policies to combat climate change and restore nature are a concern and priority in all policies of countries around the world. Green development, sustainable growth, gradually reducing the use of fossil materials and increasing the proportion of renewable energy in economic development are the trends and directions of many economies around the world, especially in the world. with developing countries, to effectively respond to the negative impacts of climate change.
As one of the countries most vulnerable to climate change, in recent years, Vietnam has always been proactive and active in implementing many activities both to respond to climate change and towards development. Green, sustainable. In this context, at the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP26), the Prime Minister made strong commitments of Vietnam, determined to bring the net emissions to "zero" by 2050 has been highly appreciated by the international community, thereby opening up many opportunities for cooperation on low-emission growth, promoting circular economy development, and adapting to climate change. climate, creating favorable momentum for Vietnam to develop quickly and sustainably. To realize the above goal, right after the COP26 Conference with the drastic direction of the Prime Minister, the National Steering Committee on the implementation of Vietnam's commitments at COP26 was established with the participation of the Government. of many ministries and branches (including the SBV) together with specific programs, tasks and goals, affirming Vietnam's determination to the international community.
Recently, Vietnam and the world have faced unprecedented difficulties and challenges such as the Covid-19 pandemic, which has far-reaching impacts on all aspects of socio-economic life. festival. Governments around the world have come up with many solutions to bail out the economy. However, right after the Covid-19 pandemic was basically controlled, countries around the world faced the risks of increasing global inflation, important political developments between regions, countries and regions. For Vietnam, under the close direction of the Party, the State, the National Assembly, the drastic direction of the Government and the Prime Minister, the drastic implementation of the ministries and branches, Vietnam has basically stabilized the macro-economy, implemented the programs and goals set out by the 13th Party Congress, including the content of concern and focus on solutions to combat the problem. Climate Change. The banking industry also follows the general policy, promulgating and building a green banking development project in Vietnam, closely following the Government's policy on the Green Growth Development Plan for the period 2021 - 2030, with a vision 2050, with a series of key activities and results; promulgate the Action Program of the banking sector to implement the National Strategy on Green Growth, develop a Circular, create a legal corridor related to the issue of credit extension of credit institutions, pay attention to the environmental and social risk management issues in credit granting activities, gradually increasing the proportion of green credit outstanding balance for the economy.
Implement the Prime Minister's direction on assigning the State Bank to assume the prime responsibility for, and coordinate with relevant ministries and branches in, mobilizing resources from international partners and financial institutions to serve the Green Development Strategy. and implementing commitments at COP26, the SBV has actively and actively discussed with international financial institutions and foreign banks such as the World Bank (WB), Asian Development Bank (ADB), and the World Bank. French Development Agency (AFD), Banking Working Group (BWG)... to assess and consider the possibility of mobilizing resources to realize green development and sustainable development goals.
The Governor wished that today's conference would be an opportunity for delegates to exchange information, share experiences and practices at home and abroad, and propose effective solutions... to attract and mobilize effectively and efficiently use valuable support resources from international financial institutions, foreign banks for Vietnam as well as the banking industry. Governor Nguyen Thi Hong also believed and informed
Through the presentations of domestic and foreign speakers and the contents of the seminars during the Conference, it will suggest new ways and directions for the Government and the banking industry in accessing, mobilizing resources, and directing towards the realization of green development goals, sustainable growth as well as Vietnam's commitments at COP26.
Ms. Michele Wee - Chairwoman of the Banking Working Group (BWG) spoke at the Conference
On the BWG's side, Ms. Michele Wee shared, "In order to achieve the goals of green development and sustainable development, finance is considered as the core factor determining this transition. Government support should be reinforced by the participation and practical actions of the domestic private sector and through financial sources from the public and private sectors.
The BWG Chairman said that achieving green growth requires a significant change in investment, while discovering and accessing new sources of climate change financing as well as integrating environmental issues and Climate into corporate finance strategies remains a major challenge for Governments, businesses and organizations seeking to implement strategies, plans and projects- low carbon. For Vietnam, green growth is an important mission towards sustainable development and requires a close, reasonable and harmonious combination between socio-economic development and environmental protection.
According to Directive No. 03/CT-NHNN dated March 24, 2015, the State Bank of Vietnam requires commercial banks to promote green credit for projects with clear objectives on environmental protection, encouraging business activities. environmentally friendly business. With this orientation and roadmap of the State Bank and the continuous efforts of credit institutions, green credit is making positive developments and is getting more and more attention, with the investment limit increasing day by day.
Deputy Minister of Planning and Investment Nguyen Thi Bich Ngoc spoke at the conference.
Speaking at the Conference, Deputy Minister of Planning and Investment Nguyen Thi Bich Ngoc said that the goal of bringing net emissions to "zero" by 2050 at COP26 is both a challenge but also opens up great opportunities for Vietnam in attracting resources for implementation. According to estimates by the World Bank in the recently released Country Report on Climate and Development for Vietnam (CCDR), to implement a roadmap for green growth, climate adaptation and net emissions by “ 0”, it is expected that Vietnam will need to mobilize financial resources by about 6.8% of GDP annually, equivalent to about 368 billion USD from now to 2040, of which needs to be mobilized from the private sector about 50%. .
Green growth plays a particularly important role in realizing Vietnam's commitment to the Paris Agreement on climate change. Therefore, right before the COP26 Conference, the Prime Minister approved the National Strategy on Green Growth in the 2021-2030 period, with a vision to 2050 with four important target groups: Reducing the intensity of greenhouse gas emissions glass to GDP; Greening economic sectors; Greening lifestyles and promoting sustainable consumption; Greening the transition on the principles of equality, inclusion and resilience.
In order to concretize the Strategy, on July 22, 2022, the Prime Minister issued the National Green Growth Action Plan for the period of 2021 - 2030. This is the roadmap to carry out the restructuring. economy, transforming growth models, ensuring economic prosperity, environmental sustainability and social justice. The successful implementation of the National Green Growth Action Plan will contribute to realizing Vietnam's commitments at COP26, especially the implementation of Vietnam's national self-determination commitment (NDC).
At the Conference, the parties presented, focused on exchanging and discussing important and topical issues and contents about the Government's commitment at COP26 and the implementation in Vietnam; orientation of energy transition in Vietnam; credit policy of the banking sector to support green growth and sustainable development goals; mobilize resources for green development and sustainable development goals; key messages from the Vietnam National Development and Climate Report; harmonization between economic development goals and climate risks; implementation practices, international experiences, recommendations and proposals…
This conference is an opportunity for stakeholders to exchange, share and collect important information sources from the Government of Vietnam on orientations and policies on green development and sustainable development to support sustainable development. support the Government in realizing the committed goals at COP26 as well as listen to share, discuss implementation practices and recommendations from potential partners to attract financial resources to support the Government. Government of Vietnam to implement a number of goals at COP26. From there, the SBV and relevant ministries and branches can consider and research to propose the Government appropriate solutions, adapting to the new situation and trends.
At the end of the conference, SBV Deputy Governor Pham Thanh Ha shared, the implementation of the commitments committed at COP26, especially the commitment to bring net emissions to “zero” by the middle of this century is what we are aiming for. This is a challenge but also an opportunity for Vietnam to implement strong reforms, restructure the economy towards green and sustainable growth, gradually increase the proportion of clean energy and renewable energy in the country. economic development. In this process, the companionship and sharing of international organizations, financial institutions, and foreign banks is not only in the perspective of policy advice and experience sharing for housing management agencies. water, but also in supporting financial resources, direct capital for green project investors, sustainable development. With the signals and messages given at the Conference today from international organizations and foreign banks about support/financing resources, the Deputy Governor believes that there will be a shift, attracting capital flows. , new investment resources will move into Vietnam in the near future.
SBV Deputy Governor Pham Thanh Ha speaks at the Conference
Appreciating the speeches, presentations, positive comments and exchanges from the participants of the conference, Deputy Governor Pham Thanh Ha affirmed, the contents presented and exchanged at the conference helped to visualize a comprehensive, quite comprehensive picture of the situation and implementation practices of the Government, ministries and sectors in responding to climate change, building a green economic model, the process of transforming energy exchange; advantages and problems in terms of policy and legal framework; support resources and the ability to mobilize from international organizations as well as proposals and recommendations for the Government and state management agencies to have solutions to effectively open, attract and mobilize support resources, especially from reputable international financial institutions and potential foreign banks. The contents and opinions exchanged from international partners, and suggestions from the delegates in this Conference will help the Government, ministries and branches better understand and understand the wishes and needs of the stakeholders. parties, funding organizations, funds, investors, and at the same time, it is also open to domestic regulatory agencies to conduct research and review to advise and propose changes and adjustments to policies for in line with the actual situation, catching up with the development trend of the world.
The Deputy Governor also wished that international organizations, financial institutions, and foreign banks would continue to accompany the Government and the banking sector to support green project investors, green transformation, continuing fully access to credit sources, especially preferential loans from abroad by foreign banks present in Vietnam.
Chairman of BWG Michele Wee We expressed our pleasure that the conference received enthusiastic comments and hoped that these contents would be synthesized, serving as a premise for competent authorities to consider and evaluate, from Thereby continuing to improve the legal framework and research and develop mechanisms and policies to support sustainable financial development in Vietnam. The Chairwoman also pledged to continue to support and cooperate by participating in the exchange and sharing of information and practical application experiences to contribute to the process of building and developing the legal framework in Vietnam. Banks and businesses operating in Vietnam hope to continue to receive the support and companionship of the Government of Vietnam and the State Bank of Vietnam to commit and mobilize necessary resources to support the Government in realizing its objectives. and committed at COP26.
