Organized by Forbes Vietnam, the summit was held last week in HCMC with the topic ‘Investing opportunities in the Renewable Energy sector’. Speaking at the summit, BIDV, a market leader in green financing, has shared the experience in funding and implementing international financing sources for sustainable development goals.

The conference brought together top-level business leaders, industry experts, and major investors in the energy sector to discuss opportunities and challenges, exchange practical experiences, and outline investment prospects in the energy sector in Vietnam.

At COP26, the Vietnamese government have committed to the goal of achieving Net-zero emissions target by 2050. One of the key focuses of the action plan is the development of green energy while, ensuring both economic growth and sustainable development.

In mid-May 2023, the government have approved the Power Development Plan VIII, which prioritizes the development of renewable energy sources such as wind power. This new development will open up various investment opportunities for domestic and international investors in Vietnam.

As the largest green financing bank in Vietnam and in accordance with the government orientation, BIDV has defined its strategy and core activities to focus resources on green development, sustainable finance, and enhance environmental, social, and governance (ESG) practices.

Speaking at the "International Capital Flow" panel discussion, Mr. Vuong Thanh Long, Head of BIDV's FDI Corporate Banking Department, stated,

We deeply understand our responsibility to contribute to green and sustainable development in combating climate change. Through green energy financing, BIDV will contribute to leverage and promote a greener economy. From a business perspective, BIDV is also very confident because the energy in general, and green energy in particular, will be consistently in demand for a fast-growing economy for the next 30 years.

Mr Vuong Thanh Long – Head of BIDV FDI Corporate Banking Department – speaking at the summit

BIDV is currently priortizing providing financial support for the energy sector through green credit, with a total amount of 54,382 billion VND, accounting for 86% of BIDV's total green loan outstanding, with more than 1,468 renewable energy and clean energy projects (as of December 2022).

BIDV is committed to continue carrying out its "Green Credit" packages, allocating a portion of our portfolio to support clients in the renewable energy and clean energy sectors, as well as industries with low carbon emissions and climate change adaptation. With this commitment, BIDV will contribute to Vietnam’s transition to a greener economy, environmental protection, climate change mitigation, and resource and energy efficiency, demonstrating BIDV’s responsibility towards the community and the environment.

As the largest bank in Vietnam in terms of total assets and an extensive portfolio in project financing, BIDV regularly collaborate with international organization and financial institutions such as the World Bank, International Finance Corporation (IFC), Asian Development Bank (ADB), French Development Agency (AFD), Japan Bank for International Cooperation (JBIC), Japan International Cooperation Agency (JICA), German Corporation for International Cooperation (GIZ), Climate Bonds Initiative (CBI), as well as other major commercial banks to develop project financing structures that are suitable for Vietnam.

With international financial institutions’ expertise in project financing along with their competitive interest rates, and BIDV’s comprehensive understanding of local laws, and practice, we together can provide the best solutions for clients and projects alike, further attracting both domestic and overseas financing sources and investment into the green and sustainable development in Vietnam.

Notable ‘green policies’ implemented by BIDV: (i)     The first domestic bank to issue the Environmental and Social Management System (ESMS) framework in 2018, applicable to projects and clients with international funding. (ii)    Completion of the Green Bond Issuance Framework draft (in accordance with the State Bank of Vietnam's regulations, supported by GIZ - Germany and advised by CBI - Climate Bond Initiatives), with the goal of becoming the first bank to successfully issue green bonds after the issuance of Vietnam's Green Taxonomies. (iii)  The first Vietnamese bank to announce its Sustainable Loan Framework to provide ESG loans to domestic corporate customers under the UK's Technical Assistance program, in collaboration with the Carbon Trust as the advisor. (iv)      Studying to intergate environmental and social screening/scrutinizing steps into BIDV current credit appraisal process to encourage more green initiatives from BIDV’s customers.

BIDV is the leading bank in green financing in Viet Nam

About BIDV

Founded in 1967, BIDV is the largest commercial bank in Viet Nam in terms of total assets, exceeding 2 million billion VND (approximately USD 90 bn), In 2023, BIDV ranked 1081st in Forbes’s list of 2000 largest listed companies, jumping 524 spots from 2022.

BIDV leads the market in green financing with 1,386 clents, 1,718 projects with over 63,000 billion VND (~2.7 billion USD) in outstanding loans, accounting for 4.3% of BIDV's loan portfolio. Focusing primarily on  renewable energy and clean energy sectors, BIDV's market share in green financing stands at approximately 13% (as of December 31, 2022).