BIDV has promoted sustainable and green growth as a goal in the bank's business strategy for 2021-25 and vision for 2030. (Photo courtesy of BIDV) BIDV became the first commercial bank in Vietnam to announce this comprehensiveframework for its customers, creating opportunities for the bank to develop andintroduce sustainable financial products to the customers, which followinternational standards.
BIDV has promoted sustainable and green growth as a goal in the bank's businessstrategy for 2021-25 and vision for 2030. BIDV has implemented various actionprogrammes to realise the set goal. As of 31 December, 2022, BIDV is the marketleader in green financing with 1,386 customers and projects with a total year-endoutstanding loan reaching 2.68 billion USD. Therefore, developing the frameworkis the next step that enables BIDV to introduce and offer sustainable financialproducts to the local market.
Le Ngoc Lam, BIDV’s CEO, said: “BIDV has developed a strategic vision for greenlending, hence always prioritises funds to finance green projects and hasachieved positive results. The development and issuance of a Sustainable LoanFramework will help BIDV provide sustainable financial products in accordancewith international standards to domestic enterprises, and at the same timeserve as a basis for BIDV to strengthen cooperation with international partnersin the field of sustainable development in Vietnam."
BIDV’s framework has been developed with advice from the Carbon Trust.
Chris Stephens, the Carbon Trust’s Asia and Africa Director, said: “The needfor sustainable finance to bridge Vietnam’s climate transition is more urgentthan ever. BIDV’s Sustainable Loan Framework is a critical first step tomobilise the capital needed for sustainable solutions and drive impactfuloutcomes in the broader society.”
This collaboration between BIDV and the Carbon Trust was made possible underthe ASEAN Low Carbon Energy Programme (LCEP), a 15 million EUR developmentprogramme funded by the United Kingdom Government.
Ronald Bohlander, Climate Counsellor at the British Embassy Hanoi, said: “TheUK is committed to supporting Vietnam in delivering a green and just energytransition. We are delighted that BIDV is joining the increasing number offorward-thinking financial institutions across the world that is demonstratingtheir commitment to closing the financing gap for a green economic transition.The UK would like to encourage other Vietnamese banks and stakeholders toconsider following in the footsteps of BIDV and be part of a growing coalitionhelping to deliver on Vietnam’s net zero transition objectives.”/.
VNA
