BIDV achieves SPO results with SQS2 rating (very good). Mr. Tran Long, BIDV’s Senior Executive Vice President, talks about the significance of this achievement and the benefits of the Sustainable Loan Framework for both the bank and customers.

- Moody's recently awarded BIDV a SQS2 (very good) rating for the bank’s sustainable loan framework. what does this mean for BIDV?

- In the evaluation report, Moody's clearly highlighted that BIDV has outlined the key features of green, social, and sustainable loans (or thematic loans) within an official framework, which includes four core components based on the Green Loan Principles (GLP) 2023, Social Loan Principles (SLP) 2023 issued by the Loan Market Association (LMA), the Loan Syndications and Trading Association (LSTA), and the Asia Pacific Loan Market Association (APLMA). BIDV's framework represents a significant contribution to sustainable development.

In addition, according to Moody's assessment, the purpose of fund usage, the selection process, monitoring, and evaluation are key strengths of the sustainable loan framework. Among these, the process of assessing and selecting eligible projects received the highest evaluation.

Mr. Tran Long, Senior Executive Vice President, BIDV

Moody's also assigned an SQS2 rating to BIDV's Green Bond Framework issued in October 2023 and its Sustainable Bond Framework published in August 2024. This reinforces the transparency, alignment with international standards and measurability of the framework, while also strengthening the confidence of partners and investors in the bank's commitment to sustainable development.

After the SPO, we successfully issued VND2,500 billion (USD100 million) in green bonds and VND3,000 billion (USD120 million) in sustainable bonds following ICMA guidelines. The allocation report for the use of the green bond proceeds has been independently assessed by FiinRatings. This confirms that BIDV has selected eligible projects and allocated the green bond proceeds in compliance with the Green Bond Framework. These are key drivers for us to  continue improving and expanding our green and sustainable financial products.

- In your view, what distinguishes BIDV in the current trend of implementing green banking and ESG practices?

- Acknowledging the importance of green banking, sustainable development, and ESG practices for both the Vietnamese economy and business operations, BIDV’s development strategy has set the goal of “sustainable development” with a focus on promoting green credit, sustainable finance, and contributing to the overall progress of society. To achieve this goal, BIDV has introduced a range of solutions across different areas of operation as outlined below.

Firstly, the implementation of ESG at BIDV is strongly supported, guided, and committed to by top leadership. The clear commitments, notable results in recent years, and future goals are clear evidence of the leadership’s resolve to make BIDV not just a large and powerful bank but also a leading green bank in the region and the world. Ernst & Young has been advising BIDV on developing a comprehensive sustainable development strategy and ESG practices.

Secondly, BIDV benefits from its large scale. Having engaged in green financing early on, BIDV is now leading the market with a green credit portfolio exceeding VND75,000 billion and nearly 1,700 customers. This, combined with its vast customer base, is a key differentiator that allows BIDV to further expand and strengthen green and sustainable finance activities in the future.

Thirdly, corporate culture and human resources are recognized as one of the three pillars of BIDV's business development strategy. A strong corporate culture fosters an environment that spreads the green development culture throughout the entire BIDV system, with clear direction cascaded from the Leadership to each unit and employee. Additionally, with a talented and adaptable workforce, employees will be the driving force in implementing and promoting green banking initiatives at BIDV.

Finally, BIDV’s pioneering commitment to social responsibility and spreading human values to customers and the public is crucial. The bank consistently dedicates substantial resources and efforts to positively contributing to the community, focusing on priority sectors in line with the government objectives.

- What are the key highlights of BIDV's newly announced sustainable loan framework?

- BIDV's Sustainable Loan Framework is our effort to promote sustainable finance in Vietnam.

With the guidance of the Carbon Trust, this framework complies with the Green Loan Principles (GLP), Social Loan Principles (SLP), and Sustainability-Linked Loan Principles (SLLP) issued jointly by the Loan Market Association (LMA), the Loan Syndications and Trading Association (LSTA), and the Asia Pacific Loan Market Association (APLMA).

The framework is designed to support the implementation of the most widely used sustainable financial products in the global market today.

- What is BIDV's long-term goal in implementing the sustainable loan framework?

- The bank's goal is to integrate sustainability into its core business strategy. This not only helps Vietnamese businesses access financing to support their transition but also aligns BIDV's internal processes with sustainability, contributing to environmental protection and fulfilling the country's commitments on emission reduction and climate change mitigation.

- What are the main benefits of the sustainable loan framework for BIDV and customers?

- The Sustainable Loan Framework brings several important benefits to both BIDV and its customers. For BIDV, the framework enhances its reputation and position in the sustainable finance sector, attracts preferential funding from international organizations, and reduces risks by integrating ESG criteria into its lending activities.

For customers, the framework provides access to preferential funding, supports businesses in achieving their sustainable development goals, and improves their branding. At the same time, applying the framework helps both parties comply with international standards, contributing to the promotion of sustainable development.

- Do you have any advice for businesses to take advantage of sustainable loans?

- In my opinion, businesses should view this as an opportunity to transform their business models towards greener and more sustainable practices, contributing to a low-carbon economy. The diverse sustainable financial products that BIDV offers are wellsuited for companies aiming to achieve their sustainable development goals.

We are eager to accompany businesses on their green transition and ESG practices, ensuring compliance with international market regulations and standards, contributing to carbon emission reduction, and ultimately supporting the goal of sustainable development and Vietnam's Net Zero commitment by 2050.