return icon Vietnamnet.vn

Green credit takes off in Vietnam

National green credit programs will help Vietnam reach its goals in the national green development strategy in a comprehensive way and help drive the economy towards sustainable development.

In September 2012, the Prime Minister signed Decision No 1393 approving the national plan on green development in 2011-2020 with a vision until 2050.

 

{keywords}



Under the plan, credit institutions will proactively contribute to the building of a green financial system comprising five elements – green credit, green bonds, green stocks, green financial funds and green insurance, in order to mobilize and encourage all resources in the society to invest in green production fields and reduce investments that may cause environmental pollution.

Green finance has two major functions which are encouraging the development of green production industries and protecting the natural environment.

National green credit programs will help Vietnam reach its goals in the national green development strategy in a comprehensive way and help drive the economy towards sustainable development.

According to the International Financial Corporation (IFC), green credit is provided by commercial banks to the projects that pose little risks to the environment, or projects that aim to protect the environment, projects to help adapt to climate change, use resources effectively, save energy, and contribute to the ecosystem protection.


Commercial banks in recent years have launched a series of credit packages targeting green development, with the priority to the fields of hi-tech agriculture, solar power and environmentally-friendly projects.

SBV joined forces with IFC to build a social environmental risk assessment toolkit for 10 fields, including agriculture, chemicals production, construction and infrastructure development, power, food processing, textile and garment, oil and gas, waste treatment, mining and non-metallic mineral products. This helps credit institutions assess projects and make decisions on providing credit.

Vu Dinh Anh, a respected economist, in his article on Doanh Nhan Sai Gon, quoted experts as saying that Vietnam needs about $30 billion to implement the goals on green growth by 2020. Of this, 70 percent will come from the non-state sector.

The use of integrated green finance policy framework in combination with green finance products and tools to build national green credit programs, green bond programs and green indexes will help Vietnam obtain its goals in the national green growth strategy.

GIZ, the German international cooperation organization, predicted that Vietnam could reduce 85.12 million tons of CO2 by 2020 and 197.9 million tons of CO2 by 2030 thanks to green credit in particular and green finance in general.

A report from SVB found that in Q4 2018, the green outstanding loans had reached VND180.121 trillion. The figure had risen to VND235.717 trillion by Q3 2018 and to VND242.355 trillion by the end of Q1 2019. This included VND188 trillion worth of medium and long-term loans, which accounted for 77 percent, and VND54 trillion worth of short-term loans.

Mai Thanh 

 

Germany pledges US$235 million in next two years for Vietnam's green growth

Germany pledges US$235 million in next two years for Vietnam's green growth

The funding will focus on energy, environment, and vocational training in the next two years.

VN banks now keen on green credit

VN banks now keen on green credit

Green credit is now a trend in the global banking and finance industry and more Vietnamese banks are following suit.

MORE NEWS

Experience Hanoi in its autumn glory

Thanks to its geographical location, the Vietnamese capital city of Hanoi witnesses contrastingly different weather conditions during the four seasons of the year.

VIETNAM NEWS HEADLINES DECEMBER 5

HCYU’s 7th National Congress to be held next week

RoK President hosts State-level welcoming ceremony for Vietnamese counterpart

President Nguyen Xuan Phuc was welcomed in Seoul with a 21-gun salute which is given to a foreign head of state during a State-level visit to the Republic of Korea (RoK).

VIETNAM BUSINESS NEWS DECEMBER 5

2022 ASEAN Postal Business Meeting to be held in Binh Dinh

Ministry considering EVN’s proposal for electricity price hikes

The Ministry of Industry and Trade is reviewing Vietnam Electricity's (EVN) proposal to increase electricity prices as rising input cost was weighing on the largest power company with record loss anticipated for this year.

Proper investment needed to develop night-time economy in Vietnam

The night-time economy of major cities in the country has remained underdeveloped due to a lack of proper investment and an absence of a legal framework and policies to promote it, authorities said.

Vietnam's rice exports likely to reach US$3.5 billion this year

Vietnam is anticipated to rake in roughly US$3.5 billion from exporting more than seven million tonnes of rice this year, according to industry insiders.

Local movie to be screened at Australian Vietnamese Film Festival

Vietnamese film "Cô gái từ quá khứ" (Girl from the past) will be introduced at the Australian Vietnamese Film Festival (AVFF) 2022 which is getting underway in Melbourne, Australia.

Auctions for car licence plates to be tested from July 2023

The starting price of a car licence plate put up for auction is VND40 million. The price may increase by increments of VND5 million.

Purpose-led business to drive superior performance

Working and developing a career at an enterprise with a mission towards sustainable development, employees can bring their goals to life.

Vietnam is well-positioned for green hydrogen production

Green hydrogen (GH2) industrial development is a direction for Viet Nam in the energy transition roadmap to achieve the goal of zero carbon emissions by 2050 but challenges remain, experts said.

Vietnamese Ao Dai honoured at Hanoi festival

Young designer Vu Thao Giang introduced a collection of Ao Dai, a traditional long dress of Vietnam, kick-starting the 2022 Hanoi Tourism Ao Dai festival oon December 2.

Entertainment and cultural events of the week (December 5-11)

Upcoming entertainment and cultural events in Vietnam's major cities on December 5-11.

Three belts on the line at 'Fortunes of War' boxing event in Vung Tau

A blockbuster "Fortunes of War" boxing event will bring together Asia's best fighters in 12 bouts, including three title matches, sanctioned by the IBF and WBO on December 10 at The Grand Ho Tram Strip, Ba Ria Vung Tau Province.

Gold items popular with wealthy Vietnamese

Wealthy people in Vietnam are willing to spend money for their villas, ornamental plants and cars.
back_to_top