Vietnam Forest Protection and Development Fund (VNFF - under the Ministry of Agriculture and Rural Development) has just selected BIDV as the servicing bank to the Emission Reductions Payment Agreement (ERPA) funded by the Forest Carbon Partnership Facility (FCPF), worth 51.5 million USD (equivalent to 1,235 billion VND).

ERPA was signed by the Ministry of Agriculture and Rural Development as the Program Implementing Agency and the International Bank for Reconstruction and Development (IBRD) (belonging to the World Bank group) as a trustee of FCPF. The agreement aims to transfer 10.3 million tons of carbon dioxide equivalent (CO2e) emissions reductions in the North Central region (Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri and Thua Thien Hue) for the period 2018 - 2024 to FCPF, with the total amount of 51.5 million USD. Vietnam is the first country in Asia-Pacific and the fifth globally to reach this important agreement with FCPF.

As a leading state-owned commercial bank with outstanding experience in international entrusted funds management, BIDV always identifies its responsibility as a pioneer in implementing the policies and directions of the Government and the State Bank in promoting the development of green credit and green banking, contributing to implementing the national green growth strategy. Sustainable development and green growth are the most important strategic goals in BIDV's operations.

BIDV is always ready to be a bridge between relevant parties, management agencies, local and international financial institutions to connect cooperation opportunities in green growth, environmental protection and climate change prevention; thereby contributing to the development and improvement of sustainable financial ecosystem in Vietnam. With its reputation, capacity and experience, BIDV has become a strategic partner of international financial institutions such as the World Bank (WB), Agence Française de Développement (AFD), Asian Development Bank (ADB) in implementing green projects in Vietnam. BIDV's leading position in international entrusted funds operations in Vietnam continues to be affirmed when VNFF confidently selects BIDV as the bank serving ERPA.

As of June 30th 2023, BIDV is the leading among commercial banks in financing green projects with a total loans of 66,176 billion VND (equivalent to 2.8 billion USD), accounting for 4.1% of BIDV's total loans. It is expected that by 2025, BIDV's loans portfolio for green sector and sustainable development will reach 3 billion USD, accounting for about 5% of BIDV's total loans.