Proactively leading green transformation
Since 2017, the number of credit institutions (CIs) granting green credit has increased rapidly from 15 to 50 CIs. Green credit outstanding balance has reached over VND 665,000 billion, an increase of 7.11% compared to the end of 2023; the average growth rate of outstanding balance in the period 2017-2024 is 22%/year; outstanding balance assessed for environmental and social risks accounts for about 23% of the total outstanding balance of the economy.
According to statistics from the State Bank of Vietnam (SBV), about 80-90% of banks have applied part or all of the environmental - social - governance (ESG) practices in their operations. And nearly 50% of other banks have established a risk management department for lending credit to protect the environment.
This result demonstrates the efforts of the State Bank of Vietnam (SBV) in being proactive and having many positive solutions to implement the goals in the National Strategy on Green Growth.
It is noted that, from the very beginning, the State Bank has had specific measures and programs, from orienting green credit and green banking activities through the Industry's Development Strategies, the Vietnam Green Banking Development Project, the Project on restructuring the system of credit institutions, etc.
The legal framework has also been improved, with specific procedural contents developed for commercial banks to implement special contents in financing green economic program projects in line with green growth goals and Vietnam's commitments at international forums.
Deputy Governor of the State Bank of Vietnam Dao Minh Tu said that the State Bank of Vietnam has long recognized the important role of bank credit capital in orienting production and business activities and promoting green transformation.
In addition to the above specific actions, the State Bank also coordinates with international organizations to develop a list of green sectors and fields, a handbook for credit institutions to lend, practice ESG (Environment - Society - Governance); actively participate as a member of many international financial forums, contribute many initiatives on green banking based on the implementation reality in Vietnam...
“Credit institutions are actively and proactively implementing green credit and green banking, because this is both a challenge and an opportunity for us to keep up with and meet the requirements and goals committed to the international community in environmental protection, reducing greenhouse effects as well as ensuring the criteria of a green economy,” said Deputy Governor of the State Bank of Vietnam Dao Minh Tu.
Raising awareness for all staff in the industry
Sharing at the "Green Bank for Green Life" Contest, Permanent Deputy Governor of the State Bank of Vietnam Dao Minh Tu said: "Developing green banks and green credit is still a very important task of the banking industry in the coming time".
Accordingly, the very important task is to make bank staff, especially those who are directly lending, researching and evaluating green projects, fully understand the content and role of green credit, green banking as well as the urgency in improving the quality of investment credit for current green economic projects and programs.
This is also the guiding principle that helps the Banking Union organize the first professional competition to learn about green transformation across the industry.
Through this contest, trade union activities are closely linked with professional activities, taking the contents and connotations of the profession as the theme of activities for the trade union organization.
Deputy Governor of the State Bank of Vietnam Dao Minh Tu emphasized that green credit and green banking are very topical issues that need to be understood more fully, perceived more clearly, and have more connotations than the terms green banking and green credit, and the tasks that need to be implemented in the coming time in the banking industry in general as well as in the units of the State Bank of Vietnam and commercial banks in particular.
A useful exchange playground not only helps equip knowledge for bank officers and employees but also creates an environment for commercial banks and banking unions in the entire industry to exchange, learn, share experiences, and create more conditions for green growth and green credit development in the future.
With the professional organization of BIDV and the enthusiasm of 22 participating units in the first year of organization, the competition is believed by the leaders of the State Bank to create a movement to compete in developing green banking and green credit in the entire banking industry, from which each unit will have its own program and action to strive to contribute to the country and the banking industry on the path of sustainable development.
