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Recently, at Trade Forum 2024, a representative from the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) proposed several financial solutions to promote trade finance to combat climate change.

The Trade Forum 2024, co-hosted by the Asian Development Bank (ADB) and the World Trade Organization (WTO), was held at the ADB headquarters in Manila, Philippines, on March 20, 2024. The forum featured key figures such as Masatsugu Asakawa, President of ADB, and Ngozi Okonjo-Iweala, Director-General of WTO, along with trade finance experts and senior specialists in finance and sustainable development from the United Nations, ADB, WTO, among others. BIDV was the only Vietnamese bank invited to participate and share insights at the forum.

BIDV representative participated in panel discussions at the Trade Forum 2024

The forum concentrated on mobilizing resources and directing trade finance activities to support the transition towards a green and sustainable economy, aiming for Net-Zero commitment. Representing BIDV, Mrs. Pham Minh Chau, Deputy Head of BIDV’s Corporate Product & Policy Department, shared the bank's successful experiences and proposed numerous financial solutions to promote trade finance for climate change mitigation. These included enhancing international cooperation, sharing knowledge on developing trade finance products and green supply chain financing, digitizing trade finance processes, and researching and formulating a roadmap for implementing ESG risk management in credit activities, specifically trade finance. BIDV's solutions garnered interest from the forum's speakers and experts.

In Vietnam, BIDV is a pioneering commercial bank with significant achievements in promoting sustainable development. BIDV has long defined "sustainable development" in its Development Strategy and Long-Term Vision with the approach: Green Governance -> Green Action -> Green Environment. BIDV has proactively initiated numerous activities to promote sustainable development. It is the first domestic financial institution to sign a Memorandum of Understanding for comprehensive cooperation with the Ministry of Natural Resources and Environment to achieve strategic objectives in environmental protection, climate change adaptation, and promoting green finance sustainability in Vietnam. Additionally, BIDV is the first domestic bank to issue an Environmental and Social Risk Management Framework in credit activities. BIDV prioritizes credit capital and strengthens cooperation with international organizations to fund green and sustainable development projects. As of December 31, 2023, BIDV has financed 1,738 green projects with a total outstanding loan balance of $3.03 billion, accounting for 4.25% of the total outstanding loans, making it the market leader in green project financing.

BIDV is also ADB's largest trade finance and supply chain financing partner in Vietnam, with a trade finance limit of $290 million. In recent times, BIDV has actively engaged with ADB to enhance bilateral cooperation, particularly within the framework of the Trade and Supply Chain Finance Program (TSCFP). Due to positive outcomes in collaboration, BIDV has been repeatedly recognized by ADB as the leading partner bank in Vietnam.