Green Deposits – Investing in a Green Future

Publish date

27/05/2024

Not only presenting an opportunity to increase financial value and offering a safe and effective investment channel, BIDV's Green Deposit product represents a new advancement in our efforts towards a green future for the community and society.

ESG – An Inevitable Trend Globally and in Vietnam

The world is currently facing significant challenges related to climate change and environmental pollution. Leading international organizations such as the United Nations (UN), the International Monetary Fund (IMF), and the World Bank (WB) have successively introduced 17 Sustainable Development Goals (SDGs), along with legal frameworks and financial and technical support projects, to guide nations in collaborating and investing in projects that positively impact the environment. In Vietnam, the Government has taken concrete actions, as evidenced by its participation in international conferences of the parties to the United Nations Framework Convention on Climate Change (COP), strong commitments to achieving net-zero emissions by 2050, and involvement in the "Global Cooling Pledge" initiative. This demonstrates that Vietnam does not merely view Environmental – Social – Governance (ESG) factors as a trend but sees ESG as a key to robust and long-term development across all sectors.

Following the trend towards sustainable development, the need for capital to support ESG goals globally and in Vietnam has significantly increased. According to the World Bank (WB), to implement the green growth roadmap and achieve net-zero emissions by 2040, Vietnam needs an additional 6.8% of GDP investment annually, equivalent to approximately USD 368 billion. This indicates a strong growth in the demand for ESG capital in Vietnam. To meet this demand, innovations in financial structures and policies, along with close cooperation between the Government, banks, and enterprises, are necessary.

BIDV – A Pioneer in the Green Finance Market

As one of the leading financial institutions in Vietnam, BIDV understands its responsibility for accompanying the Government to fulfill commitments to combat climate change. BIDV has been pioneering and leading the market in the green finance sector, demonstrating responsibility to the community and contributing to transitioning the economy towards green and sustainable development. By the end of 2023, BIDV was one of the largest green credit providers in the market, with total outstanding loans exceeding VND 74 trillion, accounting for approximately 4.2% of BIDV’s total outstanding loans and 12% of the total green credit outstanding in the entire economy. The end of 2023 also marked BIDV becoming the first bank in Vietnam to successfully issue Green Bonds in the domestic market under the principles of the International Capital Market Association (ICMA), with a scale of VND 2.5 trillion.

Green Deposits – Green Future

Following the success of the Green Bond issuance, BIDV continues to pioneer the launch of the Green Deposit product. Through this product, BIDV commits that the deposits from our valued customers will be utilized to fund green projects, energy-saving initiatives, clean energy, renewable energy, emission reduction, and environmental protection. The first phase of capital mobilization for Green Deposits in 2024 amounts to VND 3 trillion, with flexible deposit terms starting from 6 months.

By investing in the Green Deposit product, businesses demonstrate a strategic vision for sustainable development, building a reputation and image-oriented towards environmental and community responsibility, which helps to increase their ability to attract investment, gain competitive advantages, expand market access, and attract customers.

Businesses using the Green Deposit product will receive certification from BIDV, and BIDV will transparently disclose the projects funded by the Green Deposit through annual reports on the official BIDV website.

Join BIDV in making a difference on the journey towards a green future!