On 21st May, 2024, at the iconic BIDV tower in Hanoi, BIDV has successfully signed a Memorandum of Understanding (MoU) promoting Sustainable Finance and Sustainable Development with MUFG, one of the world’s leading financial institutions. The signing ceremony was attended by senior executives and representatives from both organizations. This event marks a significant milestone in the collaboration of promoting sustainability between two prominent financial institutions in the Asia-Pacific region.

BIDV and MUFG representatives sign the MoU

As leading financial institutions in Vietnam and Japan, BIDV and MUFG understand the vital roles in responding to climate change and global warming. The MoU enhances the existing cooperation in implementing sustainable finance and ESG implementation. Under the MoU, MUFG and BIDV will collaborate on various initiatives including the mobilisation of capital to sustainable businesses through ESG Finance, capacity building on ESG and policy recommendation on ESG Financing to public and private stakeholders.  

Speaking at the signing ceremony, Mr. Masao Kojima, Managing Director, Regional Head of Vietnam and Head of MUFG Hanoi Branch, remarked:

Financial institutions play a pivotal role in supporting companies, institutions as they to navigate the challenges against climate change. We have a unique opportunity to drive sustainable development and facilitate the transition to a low carbon economy. This collaboration with BIDV signifies a shared vision to integrate ESG principles into the financial ecosystem, develop unique financing solutions that promote the growth of green capital for sustainable businesses and foster sustainable economic growth in Vietnam.

Pham Thi Ngoc Anh, BIDV’s Executive Vice President, Head of Financial Institutions shared:

This MoU with MUFG sets a solid foundation for enhanced collaboration in sustainable finance. By leveraging our strengths, shared experiences and ESG capabilities, it will create new opportunities to develop tailored sustainable financial instruments, thereby empowering our customers with more sustainable solutions, and support the Vietnamese Government in realizing our collective commitments to achieving Net Zero by 2050.

Being the largest commercial bank in Vietnam by total assets, BIDV defines one of the priority goals in the business strategy for the period of 2021 - 2025 and vision to 2030 is to comprehensively develop sustainable finance, and embed ESG practices in all core business activities. Through its pioneering role, BIDV has tailored green products and services to promote the green credit growth and support sustainable development. 

As at 31st March, 2024, BIDV has lent USD 2.89 bn equivalently to 2,069 green projects/plans, accounting for ~4% total outstanding loans of BIDV.

In the context of Vietnam’s rapidly growing economy and increasing global scrutiny on ESG issues, the signing of this MoU signals a proactive approach toward ESG. MUFG and BIDV are poised to lead the way in driving sustainable finance initiatives that stimulate green credit growth and sustainable development in Vietnam.

 

MUFG Bank, Ltd. is Japan’s premier bank, with a global network spanning more than 40 markets. Outside of Japan, the bank offers an extensive scope of commercial and investment banking products and services to businesses, governments and individuals worldwide. MUFG’s sustainability journey with its clients and partners continues into its next stage of growth. Under its new Medium-Term Business Plan (MTBP) for FY2024-2026, it has raised its initial commitment into sustainability-related financing from JPY35 trillion to JPY100 trillion by 2030.