IFC helps boost green credit in Vietnam

The International Finance Corporation (IFC) has provided a 100 million USD long-term loan for the Orient Commercial Joint Stock Bank (OCB) to increase the private sector’s contributions to green and sustainable growth in Vietnam.

IFC helps boost green credit in Vietnam
Illustrative image. (Photo: VNA)

IFC’s investment will help OCB improve its outreach to small and medium enterprises (SMEs) in Vietnam, which are facing a financing gap of 21 billion USD, equivalent to 11.2 percent of the country’s GDP.

With this support, OCB expects to double its SME lending portfolio by 2024 by leveraging its digital banking platform and developing products that cater to the sector’s needs.

Some areas that SMEs are seeking financing for include renewable energy, energy efficiency, and climate-smart solutions, which can help them grow sustainably while contributing to reducing greenhouse gas (GHG) emissions.

The current share of climate financing – as a percentage of total bank financing – in Vietnam is just about 5 percent or 10.3 billion USD and is expected to increase significantly in the coming years. As the country aims to reduce GHG emissions by 9 percent by 2030 to mitigate climate change impact, this presents a 753 billion USD climate-smart investment opportunity for Vietnam between 2016 and 2030, according to an IFC study. 

To help OCB tap into this huge lending potential, 50 million USD of the funding will be earmarked for climate-friendly projects, creating new options for businesses to obtain green financing.

While the State Bank of Vietnam has been promoting green banking over the past few years, the climate-finance market is still young and banks are now considering a systematic approach toward climate finance.

“IFC sees banks as a major force in fighting climate change in emerging markets such as Vietnam since they can strategically expand financing for climate-smart initiatives,” said Kyle Kelhofer, IFC Country Manager for Vietnam, Cambodia, and Laos.

“By supporting commercial banks in Vietnam to establish a viable climate-finance portfolio, IFC is facilitating the development of a climate-finance market, attracting international lenders and further supporting Vietnam’s shift to a low-carbon and resilient growth model.” 

Source: VNA

 
New strategy to place priority on green growth

New strategy to place priority on green growth

The Ministry of Planning and Investment is drafting a national green growth strategy and plans to submit it to the Government by June to accelerate the transition towards a carbon-neutral economy in Vietnam.

Vietnam leaps on carbon credit craze

Vietnam leaps on carbon credit craze

Once a policy to apply forest environmental and CO2 indicators is officially approved, Vietnam may participate more actively in the sale and purchase of carbon credits for both enterprises and localities.

 
 

Other News

.
Hanoi office market will see large changes after pandemic
Hanoi office market will see large changes after pandemic
BUSINESSicon  16/09/2021 

The office market in Hanoi is experiencing many changes amid the COVID-19 pandemic in terms of rental prices, occupational profile and new demands for office spaces, according to Savills Vietnam.

GDP to reach 3.5-4 per cent this year
GDP to reach 3.5-4 per cent this year
BUSINESSicon  16/09/2021 

The country’s GDP this year is expected to reach 3.5-4 per cent if the COVID-19 pandemic is controlled in September and a 'new normal' achieved from the fourth quarter, said Minister of Planning and Investment Nguyen Chi Dung.

Vietnam’s economy will recover after lockdown is lifted: WB economist
Vietnam’s economy will recover after lockdown is lifted: WB economist
BUSINESSicon  15/09/2021 

Vietnam’s economy will recover on the back of solid growth achieved in the first half of 2021 after the lockdown is lifted, Dorsati Madani, Senior Economist at the World Bank (WB) Vietnam, has said.

Fruitful results in 30-year dialogue relations and a new chapter for 18-year CABIS
Fruitful results in 30-year dialogue relations and a new chapter for 18-year CABIS
BUSINESSicon  16/09/2021 

The 18th China-ASEAN Business and Investment Summit (CABIS) was held on September 10-11 in Nanning, Guangxi, China.

HCM City seeks VND17.2trn from state budget for key urban projects
HCM City seeks VND17.2trn from state budget for key urban projects
BUSINESSicon  15/09/2021 

HCM City has sent an urgent request to the Ministry of Planning and Investment for a VND17.2trn (USD753m) state fund allocation during the 2021-2025 period to complete three key projects in the city.

Many Vietnamese seafood exporters are not subject to US anti-dumping tariffs
Many Vietnamese seafood exporters are not subject to US anti-dumping tariffs
BUSINESSicon  15/09/2021 

The US Department of Commerce (DOC) has announced the preliminary results of the 17th period of review (POR17) for the period from August 1, 2019 to July 31, 2020, regarding Vietnam’s tra and basa fish (pangasius) exported to the US.

Local specialties plummeting in price
Local specialties plummeting in price
FEATUREicon  16/09/2021 

While Phu Yen lobster prices are surging, VND100,000 per kilogram more expensive than the previous crop, other aquatic specialties including ca lang (hemibagrus) and hau sua (oyster milk) have seen prices plummet, causing big losses for farmers.

Hope rests on economic recovery plan
Hope rests on economic recovery plan
FEATUREicon  16/09/2021 

Hopes for the ease of social distancing measures and recovery of the economy are rising along with the decrease in the nber of new cases.

Vietnam earns over $1 billion/day in 15 days in August
Vietnam earns over $1 billion/day in 15 days in August
BUSINESSicon  15/09/2021 

In the last 15 days of August 2021, Vietnam’s exports grew strongly compared to the first 15 days of the month.

HSBC maps out two scenarios for Vietnamese economy until year-end
HSBC maps out two scenarios for Vietnamese economy until year-end
BUSINESSicon  15/09/2021 

HSBC has forecast two scenarios for Vietnam’s economy until the end of the year, with both of them focused on the re-opening of the economy, albeit in a cautious and systematic way.

Mobile money to bridge service divide
Mobile money to bridge service divide
BUSINESSicon  15/09/2021 

While telecommunications firms keep a wait-and-see stance on SMS service charge reductions despite mounting worries from banks. 

Vietnam Railway Corporation asks for VND800bn loan to maintain operation
Vietnam Railway Corporation asks for VND800bn loan to maintain operation
BUSINESSicon  15/09/2021 

The Vietnam Railway Corporation (VNR) has proposed to borrow VND800bn (USD35m) to maintain operations.

EPR to promote recycling businesses to form circular ecosystem
EPR to promote recycling businesses to form circular ecosystem
BUSINESSicon  16/09/2021 

Management of electrical and electronic waste is a challenging issue in Vietnam. 

Vietnam’s imports of Chinese agricultural products rise sharply
Vietnam’s imports of Chinese agricultural products rise sharply
BUSINESSicon  15/09/2021 

In the past eight months, imports of China's agricultural, forestry and fishery products to Vietnam increased by 50.3% over the same period last year.

Vietnam’s consumer markets expected to grow by US$130 billion over next 10 years
Vietnam’s consumer markets expected to grow by US$130 billion over next 10 years
BUSINESSicon  15/09/2021 

Consumption in Vietnam could grow by US$130 billion over the next decade as Asia continues to be the world’s consumption growth engine, a new report from McKinsey has revealed.

Businesses wait for bank debts rescheduling
Businesses wait for bank debts rescheduling
BUSINESSicon  15/09/2021 

A week after the State Bank of Vietnam issued Circular 14 on debt rescheduling to alleviate the difficulties faced by businesses due to the COVID-19...

VIETNAM BUSINESS NEWS SEPTEMBER 15
VIETNAM BUSINESS NEWS SEPTEMBER 15
BUSINESSicon  15/09/2021 

Aviation stocks see gains on ease of restriction measures

When the two 'locomotives' restart at the same time
When the two 'locomotives' restart at the same time
FEATUREicon  14/09/2021 

Contributing about 45% of the country’s GDP, HCM City and Hanoi are considered the two engines pulling the national economy. Both must be healthy and go hand in hand to revive the pandemic-hit economy.

Post-pandemic economic recovery plans in the pipeline
Post-pandemic economic recovery plans in the pipeline
BUSINESSicon  14/09/2021 

The Ministry of Planning and Investment (MPI) plans to submit its economic recovery project to competent authorities for approval in October, with the 2022 to 2023 period to be identified as the ideal time for recovery efforts.

How long will social distancing last?
How long will social distancing last?
FEATUREicon  16/09/2021 

Receipts from taxes are on the decrease, which show that goods consumption and production of enterprises have been hit hard by the Covid-19 crisis.

 
 
 
Leave your comment on an article

OR QUICK LOGIN