On 31 July 2024, the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) and the French Agency for Development in Vietnam (AFD Vietnam) signed a €50 million climate credit line agreement. This new funding will support projects focused on climate change mitigation, adaptation, and sustainable development.

As a key player in Vietnam’s banking sector and a leader in mobilizing foreign trust fund, BIDV has consistently played a pivotal in implementing government policies and directives from the State Bank of Vietnam. Recognizing the importance of supporting businesses in the energy sector, especially those focused on renewable energy, energy efficiency, environmental protection, climate change response, and green growth, BIDV has dedicated significance to these areas. By pioneering green credit initiatives, the bank has delivered substantial value to the market, and attracting international investors.

Representatives from BIDV and the French Agency for Development (AFD) at the meeting

This new €50 million climate credit line builds on the success of the $100 million SUNREF green credit line for climate change mitigation, signed and disbursed in 2021. Through this ongoing collaboration, AFD and BIDV are deepening their partnership, providing BIDV’s customers with access to favorable foreign funding for green projects. While the earlier credit line focused on climate change mitigation, this new agreement shifts focus toward climate adaptation, marking a significant step forward in the evolution of green finance in Vietnam. The €50 million climate credit line reflects the commitment of both BIDV and AFD to advancing green finance, as outlined in the Comprehensive Cooperation Memorandum signed on 28 May 2024. In addition to the credit line, AFD is also providing BIDV with €200,000 in technical assistance. This support will help BIDV develop a robust loan portfolio, establish climate risk assessment criteria, and enhance its environmental and social risk management system.

In line with its 2021-2025 business strategy and vision toward 2030, BIDV has placed “sustainable development” at the core of its banking operations. The bank has successfully secured significant green capital from international donors, which it is re-lending to its customers. Key projects funded by AFD through BIDV have already had a positive impact, such as the Urban Infrastructure Improvement Project, which aims to mitigate climate change effects in the coastal provinces of North Central Vietnam, and renewable energy projects funded through SUNREF. The €50 million climate credit line will further equip BIDV with long-term funding to support green projects that align with sustainable development goals. This funding also advance BIDV’s commitment to becoming a Net Zero bank by 2045.

The French Agency for Development (AFD) is a state and public financial institution dedicated to financing, and promoting a fairer, more sustainable world. With over 4,000 projects in 115 countries, AFD focuses on key areas such as healthcare, education, gender equality, and the protection of essential resources , including biodiversity and climate sustainability. Since 1994, AFD has been active in Vietnam, funding more than 90 projects with a total value of nearly €2.6 billion in areas across sectors such as infrastructure, transportation, energy, and agriculture.