On May 25, in Hanoi, the Vietnam Bank for Agriculture and Rural Development (Agribank) and the French Development Agency (AFD) officially signed a Climate Financial Limit Credit Agreement, marking a new step in international financial cooperation to promote green growth and sustainable development in Vietnam.
The event was attended by Mr. Olivier Brochet, Ambassador Extraordinary and Plenipotentiary of the French Republic to Vietnam; Mr. Dao Xuan Tuan, Director of the Foreign Exchange Management Department, State Bank of Vietnam; Mr. Julien Seillan, Director of AFD Vietnam. On Agribank's side were Mr. To Huy Vu, Secretary of the Party Committee, Chairman of Agribank's Member Council; members of the Member Council, Executive Board and representatives of leaders of relevant units.
Speaking at the signing ceremony, Ambassador Extraordinary and Plenipotentiary of the French Republic to Vietnam Olivier Brochet emphasized that this is the first unguaranteed climate credit that AFD has granted to Agribank. Going beyond financial significance, this partnership marks a new step in cooperation between France and Vietnam in the field of sustainable finance and green transformation. The Ambassador expressed his belief that the signing ceremony will pave the way for more ambitious cooperation between the two countries in the fields of green finance, climate and energy transition.
On Agribank's side, Mr. To Huy Vu, Secretary of the Party Committee, Chairman of the Member Council of Agribank, emphasized that green growth and sustainable development have become Vietnam's consistent direction in the new development stage. In that context, green credit and green finance are identified as important tools to realize national climate commitments.
According to the Chairman of Agribank's Member Council, with the role of a key state-owned commercial bank in the field of agriculture, farmers, and rural areas, Agribank is clearly aware of its responsibility as a "bridge" in bringing international capital from development partners such as AFD to people, businesses and green production models. Agribank is committed to managing and using capital effectively, transparently, and for the right purpose; prioritizing renewable energy projects, smart agriculture, clean agriculture, emission reduction production models and adaptation to climate change.
Today's signing ceremony is not only an agreement on capital sources but also a meeting of big visions for a greener world, a Vietnamese agriculture developing in a sustainable, circular and inclusive direction. Agribank is committed to making the highest efforts to make this cooperation effective and practical, becoming a model for international cooperation in the field of climate finance in Vietnam," Mr. To Huy Vu emphasized.
AFD Representative, Mr. Julien Seillan, AFD Vietnam Director, said that through this credit, AFD reaffirms its desire to accompany major financial institutions of Vietnam in the transition towards a more sustainable financial system, with better resilience and suitable for Vietnam's climate goals.
Immediately after the speech, representatives of both sides, Mr. Julien Seillan, Director of AFD Vietnam and Mr. Doan Ngoc Luu, Deputy General Director of Agribank, performed the ceremony of signing the Climate Financial Limit Credit Contract in the presence of leaders of agencies, partners and representatives of relevant units.
According to assessments, the cooperation between Agribank and AFD is of great significance to both the economy and the bank's development strategy.
For the economy, climate credit limits contribute to diversifying financial resources for greenhouse gas emission reduction projects, improving resilience to the impacts of climate change, especially in key sectors such as agriculture and rural development.
For Agribank, this is an important milestone when the bank successfully accessed medium and long-term loans directly from abroad for the first time without government guarantees. This step forward not only reflects Agribank's financial capacity and prestige in the international market but also creates space for the bank to be more proactive in capital structure, gradually affirming its leading role in the green finance sector in Vietnam.
Through cooperation with AFD, Agribank continues to concretize its sustainable development orientation, expand the ability to mobilize international resources for green growth, and affirm its commitment to accompany the Government, the business community and people in the journey of green transformation, adapting to climate change and developing Vietnamese agriculture towards modernity and sustainability.
AFD - French Development Agency is a public development financial institution of France, with functions of financing, lending and technical support for sustainable development programs and projects in many countries. In the field of environment, AFD is one of the international development partners actively promoting green finance, supporting economies to transition towards low emissions, improving resilience to climate change and implementing sustainable development goals.
In Vietnam, AFD has accompanied in many programs related to green growth, sustainable infrastructure, climate change adaptation, low-emission transportation, agriculture and water resource management. In cooperation with Agribank, AFD plays an important strategic partner in providing medium and long-term capital to support mitigation and/or adaptation to climate change, contributing to expanding the ability to mobilize international resources for green projects, especially projects in the fields of agriculture, rural areas, emission reduction production and climate change adaptation. The accompanying technical support program from AFD will be an important lever to help Agribank upgrade its environmental and social risk management system, and complete its ESG strategy. This is the foundation for Agribank to maintain its position as a leading green financial institution, pioneering in leading Vietnamese agriculture to transform in a sustainable, circular and inclusive direction.
