10:22 (GMT +7) - Friday 22/06/2018

Banking & Finance

SBV promoting private sector investment for green growth

Released at: 14:03, 11/05/2017

SBV promoting private sector investment for green growth

Photo: Quang Huy

"Promoting Investment of the Private Sector for Green Growth via the Banking System" conference held by central bank and Macroeconomic Reforms/Green Growth Programme of the Vietnam-German Cooperation on May 10.

by Quang Huy

The State Bank of Vietnam (SBV) and the Macroeconomic Reforms/Green Growth Programme of the Vietnam-German Cooperation organized a conference on May 10 on “Promoting Investment of the Private Sector for Green Growth via the Banking System”.

The conference was held within the framework of the Macroeconomic Reforms/Green Growth Programme, implemented by GIZ Vietnam on behalf of the German Federal Ministry of Economic Cooperation and Development (BMZ).

In order to implement the National Green Growth Strategy and National Action Plan on Green Growth for the 2014-2020 period, the SBV Governor had earlier promulgated Directive No.3 in 2015 on promoting green credit and the management of social and environmental risks in credit granting activities and Decision No.1552 in 2015 setting out the action plan for the banking sector to implement the National Green Growth Strategy to 2020.

The conference was another step following numerous efforts by the SBV to contribute to channeling investments from the private sector through the banking system to support achievements in transforming the national economy towards being greener and more socially and environmentally sustainable.

In her opening address, SBV Deputy Governor Nguyen Thi Hong emphasized the decisive role of the banking system in “greening” investment capital flows to the economy and in credit risk management towards green growth. “The two most important issues are resources mobilization and the development of credit programs with appropriate targets in line with the criteria for green and environmentally-friendly projects,” she said.

For his part, Dr. Michael Krakowski, Program Director and Chief Technical Advisor of the Macroeconomic Reforms/Green Growth Programme, said the program is committed to actively supporting Vietnam’s central bank “to develop an appropriate policy framework for green investment and green financial products and to channel domestic and international funding sources through the finance and banking system towards green investments, especially those from increasing global climate and green funds, while at the same time bolstering the cooperation with the SBV to implement Vietnam’s National Green Growth Strategy.”

Participants at the conference included experts from the SBV, officials from commercial banks and financial institutions, line ministries, cities and provinces that have implemented green activities to some extent, and experts from international organizations and key green GIZ programs. It was an opportunity for them to discuss the current status of and perspectives on international green funding sources and on the financial needs for green growth in Vietnam.

Participants were also informed by representatives from the central bank on the very first important results that lay the foundation for the whole process of developing a framework for green finance - green banking policies and products, including pilot green credit programs, a green project catalogue, social and environmental risk management guidelines, and green credit reporting regulations.

These are the initial outcomes achieved by SBV in cooperation with development partners, an active and effective contribution of which is from the Macroeconomic Reforms/Green Growth Programme.

User comment (0)

Send comment