Green credit growth in Vietnam: Opportunities, challenges and solutions

Also attending the seminar were leaders and representatives of the SBV entities and branches; representatives of the Ministry of Industry and Trade, the Ministry of Finance, the Ministry of Agriculture and Rural Development, the Ministry of Planning and Investment, the Ministry of Natural Resources and Environment, Vietnam Banks' Association; the International Finance Corporation (IFC), the German Corporation for International Cooperation (GIZ); representatives from several universities, academies, research institutes and commercial banks, etc. 

The Workshop aimed to clarify the theoretical basis and practices for green growth, green credit, green credit growth and sustainable development, identify current opportunities and challenges for green credit growth in Vietnam. The purpose of the Workshop was also to analyze and assess accurately the current status of green credit growth, thereby proposing solutions and policy recommendations for the state management agencies and the credit institutions in order to create favorable conditions for green credit growth in Vietnam in the coming time; Clarify the financial policy framework, mechanisms and criteria for green credit, the legal framework on green credit, the policy coordination of the ministries and agencies; Analyze the current mechanisms and policies of the government, current status of the assistance from donors and international organizations to encourage green credit growth; Promote the communication to raise the awareness about green growth and green credit for various management levels, enterprises and the public; International experience, practical lessons in accordance with the current situation of Vietnam, etc.

SBV Deputy Governor Nguyen Thi Hong delivers the opening speech.

Delivering the opening remarks at the workshop, Deputy Governor Nguyen Thi Hong emphasized that green growth, green finance, green banking and green credit are new areas not only in Vietnam but also in many countries over the world. The workshop is considered to be essential to collect ideas, initiatives and expert recommendations from the participants through the results of research and surveys on green banking and green credit in Vietnam and around the world, thereby proposing useful solutions and recommendations to effectively take advantage of the opportunities, especially addressing efficiently the challenges hindering green credit growth, contributing to the successful implementation of the National Strategic Plan on Green Growth towards sustainable development of Vietnam. 

Over the past time, the Prime Minister has issued a number of important documents relating to the transformation of the development model including the Sustainable Development Strategy of Vietnam for the period of 2011-2020, the National Strategic Plan on Green Growth, the National Action Plan for Green Growth for the 2014-2020 period. Accordingly, the Government of Vietnam has assigned the SBV to improve the institutional structure and enhance the financial - credit capacity of commercial banks to facilitate green growth, with specific tasks as: Reviewing, amending and improving the financial and credit institutional structures in accordance with the goals of green growth; Organizing training courses to strengthen the capacity of commercial banks and financial institutions in green financial - credit activities; Building and developing financial and banking services to support enterprises to implement green growth policies. 

Assoc.Prof. Dr. Dao Minh Phuc - Editor-in-Chief of the Banking Review speaks at the Workshop.

In order to implement the National Action Plan for Green Growth for the period of 2014 - 2020, the SBV Governor has issued Directive No.03/CT-NHNN dated March 24, 2015 on promoting green credit and environmental and social risk management in credit operations; Decision No.1552/QD-NHNN dated August 6, 2015 promulgating the Action Plan of the Banking Industry to implement the National Strategic Plan on Green Growth to 2020; Decision 1604/QD-NHNN dated August 7, 2018 approving the Scheme on green bank development in Vietnam in order to increase the awareness and social responsibilities of the banking system for environmental protection and climate change response, gradually greening banking operations, directing credit flows to financing environmentally-friendly projects, promoting green manufacturing, services and consumption; clean and renewable energy; contributing positively to green growth and sustainable development.

There were 53 discussion papers presented by scientists, managers and economists from various universities, academies, state management agencies and commercial banks. The discussion papers focused on clarifying that green credit growth poses not only opportunities but also challenges for the sustainable development, as well as the extensively international integration process, which requires effective coordination from the ministries, agencies and local authorities. The Workshop came up with several useful solutions for green credit growth in Vietnam.

Thoa Le