RELEASED DATE 25 Jul 2022
Accordingly, BIDV and AFD are committed to continuing sharing and strengthening cooperation in the fields of green finance - credit, climate change as well as other areas of mutual concern.
Mr. Phan Duc Tu - Chairman of BIDV's Board of Directors shared: Green growth is one of the important goals in BIDV's business strategy for the period 2021-2025 and vision to 2030. The bank is actively implementing activities to promote sustainable green financial development, environmental protection and climate change response. With the desire to strengthen its role in implementing the sustainable development goals of the banking system in Vietnam, BIDV proposed the State Bank of Vietnam (SBV) and AFD to introduce it to join the International Development Finance Club (IDFC), forums on green banks, and requested AFD to continue to cooperate with BIDV to deploy new sources of development support capital, non-sovereign loans which are similar to SUNREF green credit line.
AFD Vietnam representative, Mr. Herve Conan, said: AFD wishes to develop green finance in Vietnam and provide technical assistance to commercial banks to fulfill Vietnam's commitments at COP26; providing non-sovereign concessional loans; at the same time supporting research and development of new green financial instruments. BIDV is AFD's main partner in the Asia-Pacific region, and AFD is ready to strengthen and bolster its relationship with BIDV for sustainable development. AFD encourages and will support BIDV to participate in a number of networks and organizations such as the International Development Finance Club (IDFC), forums and green banking alliances to access information, connect and share the bank's green finance development strategy.
According to Mr. To Huy Vu - Director General of the International Cooperation Department under the SBV, participating in international networks will be very useful for domestic commercial banks. This is an important bridge for domestic banks to expand cooperation opportunities, access information, knowledge and new products in the field of green growth. The SBV supported AFD's referral of BIDV to the IDFC. In the coming time, as SBV's focal point on cooperation with international organizations to support green finance in the banking system, the International Cooperation Department will work with AFD as well as other organizations to deploy forums and conferences on sharing international experiences, mobilizing resources for green credit development in Vietnam.
BIDV is a flagship bank in the Vietnamese banking system and a leading bank in the field of foreign entrusted capital. With experience in the effective management of more than 200 programs and projects, BIDV provides modern and comprehensive banking products and services to support the process of efficient deployment of capital sources, ensuring compliance with commitments to the donors and the objectives set out by the Government of Vietnam. Over the years, BIDV has always been chosen by AFD and customers as a re-lending bank, serving AFD's capital sources in Vietnam with a total value of more than EUR325 million. In particular, in 2021, AFD and BIDV successfully implemented a USD100 million SUNREF green credit line. This was the first funding by AFD to a commercial bank in Vietnam in the form of non-sovereign concessional loan and is considered as one of the fastest implemented projects among AFD’s projects.
Established in 1957, BIDV is the largest commercial bank in Vietnam with total assets reaching more than VND1.76 quadrillion, boasting an extensive network of more than 1,100 domestic and foreign branches and transaction offices, and partnerships with more than 2,300 financial institutions globally as at 31 December 2021. BIDV has achieved various positive results in the green finance, particularly being the market leader in renewable energy financing with a credit size of more than USD1.7 billion by the end of 2021, accounting for 36 percent of outstanding credit for renewable energy in Vietnam. At the same time, BIDV has wide experience and high capacity in receiving and implementing international credit projects from international financial institutions with regard to programs and projects for sustainable goals.
|The French Development Agency (Agence Française de Développement, AFD) Group is a public entity which finances, supports and expedites transitions toward a more just and sustainable world. Active in more than 4,000 projects in the French overseas departments and some 115 countries, AFD teams strive to promote health, education and gender equality, and are working to protect common resources - peace, education, health, biodiversity and a stable climate. AFD has been active in Vietnam since 1994 and has financed more than 90 projects worth almost EUR2.3 billion in various sectors: transport, infrastructure, energy, agriculture, etc. In line with French cooperation priorities in Vietnam, AFD is positioning its operations to support the implementation of the Paris Agreement.|