The Ho Chi Minh City Stock Exchange (HOSE) recently announced the list of companies included in the 2024 Vietnam Sustainability Index (VNSI). Among them, BIDV (ticker symbol: BID) secured a spot as one of the Top 20 firms with the highest sustainability score.

BIDV's inclusion in the Top 20 VNSI 2024 highlights its strong commitment to supporting the Government and Vietnamese regulators in promoting sustainable development strategies. This achievement underscores the bank's dedication to transparency, accountability, and the creation of shared value for the community.

A Sustainability index aligned with global standards

The VNSI launched in July 2024 by HOSE in collaboration with the German Agency for International Cooperation (GIZ) and the State Securities Commission of Vietnam assesses listed companies across more than 100 criteria based on the OECD Principles of Corporate Governance and the Global Reporting Initiative (GRI) Standards. It reflects the growing trend of sustainable investment, focusing on Environmental, Social, and Governance (ESG) factors: The VNSI aims to: Establish sustainability benchmarks for listed companies; Assist institutional and individual investors in identifying “green” businesses for investment; Encourage Vietnam's transition to a sustainable economy; Define ESG best practices; Introduce a new investment tool to promote the growth of the stock market and the broader economy.

In its Business Development Strategy for 2021-2025, with a vision towards 2030, BIDV has made “sustainable development” a core operational objective. The bank has positioned itself as a leader in this space with its “Pioneering for Long-Lasting Values” motto and its progress toward adopting a Green Bank model. In 2023, BIDV established a Steering Committee and a Project Management Board to drive its ESG and Sustainable Development Strategy, reinforcing its commitment to leading in sustainability and green finance.

BIDV aligns closely with the Vietnamese government’s national sustainable development goals, ensuring transparency and effective governance. The bank offers premium products and services through its modern digital banking platform while fostering a professional work environment for its employees. This approach delivers long-term value to shareholders through stable dividends and growing stock prices.

Proactive sustainability efforts

As of 31 December 2023, BIDV held the largest green credit balance among commercial banks in Vietnam, with VND 74,177 billion (4.24% of total outstanding loans). The bank actively supports businesses in adopting technological innovation and reducing carbon emissions, contributing to the nation green economy transition. BIDV became the first commercial bank in Vietnam to issue both the “Sustainable Loan Framework” and “Green Bond Framework” based on international standards. In October 2023, BIDV successfully issued VND 2,500 billion (over USD 100 million) in green bonds, making the first international-standard green bond issuance by a Vietnamese commercial bank. For this achievement, BIDV was awarded the “Best ESG Bond Vietnam 2023” by Global Banking and Finance Review, and was ranked among the Top 10 Sustainable Enterprises in the Commercial and Services sector in Vietnam by VCCI in 2023. BIDV is also a pioneer in green finance, collaborating with the Ministry of Natural Resources and Environment to promote sustainability, climate resilience and the development of a green economy. Beyond its green credit offerings, BIDV has secured over USD 500 million in entrusted capital from international financial institutions, such as the World Bank, AFD, and EIB to fund green projects.  

Partnership with ADB to promote green finance

BIDV continues to demonstrate its leadership in corporate social responsibility (CSR), with a variety of initiatives aimed at promoting societal benefits. Notable programs include the annual "BIDVRUN" online charity run, the "Tet gift for the poor" initiative, the one-million-tree-planting project, the "Fresh water for a green life" campaign, and the flood-proof community cultural house initiative.

The “BIDVRUN - For a green life” event annually draws significant community participation and attention

A “Flood-proof community cultural house” project sponsored by BIDV in Quang Binh province

With favorable conditions for green banking activities in Vietnam, BIDV’s Green Bank model is positioned for continued growth and development. This strategic shift is vital for BIDV to capitalize on market opportunities, ensuring sustainable growth while contributing to the country’s broader green and sustainable development efforts.