The Vietnam Connect 2023 forum themed “New breakthroughs for central Vietnam, driving twin green and digital transition in sustainable economic growth strategies” and co-hosted by the Vietnamese Ministry of Foreign Affairs, Da Nang City People’s Committee and the Vietnam Economic Times was held in the central city of Da Nang on 17 March. BIDV was the only bank to sponsor the forum.

Participating in the forum, BIDV continued to affirm its active promotion of sustainable development, contributing to the implementation of the global energy transition, and accompanying and supporting the business community, especially ones in the central and central highlands region.

Diễn đàn có sự tham dự và đóng góp ý kiến của Ngân hàng thế giới cùng đại diện hơn 20 đại sứ quán, lãnh sự quán, gần 20 đại diện lãnh đạo các Hiệp hội doanh nghiệp nước ngoài tại Việt Nam và hơn 300 đại diện doanh nghiệp FDI và doanh nghiệp Việt Nam.

By the end of 2022, BIDV led the market in green project financing with more than 1,386 customers and projects. Total amount of credit commitments for green projects was more than VND61,700 billion, with a focus on the renewable energy sector with more than 800 projects. The total amount of credit commitments for renewable and clean energy projects was more than VND53,200 billion.

Green loans currently account for 3.3 percent of BIDV's total outstanding loans, equivalent to VND49 trillion (USD2.1 billion). For wind and solar power projects with a loan scale of over VND500 billion alone, in the period of 2020-2021, BIDV had financed 25 projects with a total loan amount of VND23,400 billion (equivalent to USD1 billion).

Green growth towards sustainable development is an important goal and the highest priority of countries around the world, including Vietnam. As a country heavily affected by climate change, Vietnam soon realized the importance of implementing green transition by actively approaching models of circular economy, sharing economy, and green economy. Over the years, Vietnam has made great efforts to approach new world trends, advanced production and business models, and apply digital technology, gradually replacing traditional operating methods, mitigating the level of impact on the natural environment and human living environment.

It is proved that the data and digital technology platforms of the 4th industrial revolution are likely to improve, effectively addressing the urgent challenges posed to the world and countries related to environmental issues and climate change. World's digital technology experts say that 4.0 technology solutions have the potential to cut global emissions by 20 percent by 2030.

Driving twin green and digital transition has drawn the attention of countries around the world. Based on the needs and requirements of Vietnam, it is necessary to accelerate the process of green transition to achieve green growth and meet the roadmap to deliver Vietnam's commitments of net-zero by 2050 at COP26. It is necessary and urgent to raise the issue of "driving twin" to discuss its appropriateness as well as find effective solutions to promote this process at localities and with economic sectors.

In February this year BIDV became the first commercial bank in Vietnam to announce this comprehensive framework for its customers, creating opportunities for the bank to develop and introduce sustainable financial products to the customers, which follow international standards. The framework outlines qualifying activities to guide the development and issuance of thematic loans and sustainability-linked loans.

BIDV is the first commercial bank to sign a memorandum of understanding on cooperation with Vietnam Ministry of Natural Resources and Environment to implement activities to promote sustainable and green financial development in Vietnam. In order to contribute to the implementation of the Vietnamese government’s commitment at COP26, BIDV has improved institutional capacity; finalized internal processes relating to green credit; established a sustainable finance project management unit (PMU) to deliver the sustainable financial goals, manage ESG risks in credit activities, looking forward to becoming a net-zero bank.

BIDV is also one of the first two banks selected in the technical assistance program under the cooperation plan between the State Bank of Vietnam and the German Agency for International Cooperation (GIZ) to build and complete a Green Bond Framework according to the Climate Bond Initiative (CBI) standards, in accordance with ICMA and ASEAN standards. With the cooperation and support of the Carbon Trust and the British Embassy in Vietnam, BIDV has developed and issued a Sustainable Loan Framework for green, social and sustainability linked loans and will soon provide internationally standardized products to customers.

As a key commercial bank in the Vietnamese banking system, boasting years of experience in lending sustainable energy infrastructure investments, BIDV has effectively served and re-lent funds from international financial institutions such as AFD, WB. The bank has affirmed its pioneering role in implementing the policies of regulators in promoting green credit, green banking, as well as working positively with international financial institutions to contribute to the global energy transition.