BIDV has promoted sustainable and green growth as a goal in the bank's business strategy for 2021-25 and vision for 2030. (Photo courtesy of BIDV)

Hanoi - The Bank for Investment and Development of Vietnam (BIDV) on February 16 officially issued a Sustainable Loan Framework in consultation with the Carbon Trust.

BIDV became the first commercial bank in Vietnam to announce this comprehensive framework for its customers, creating opportunities for the bank to develop and introduce sustainable financial products to the customers, which follow international standards.

BIDV has promoted sustainable and green growth as a goal in the bank's business strategy for 2021-25 and vision for 2030. BIDV has implemented various action programmes to realise the set goal. As of 31 December, 2022, BIDV is the market leader in green financing with 1,386 customers and projects with a total year-end outstanding loan reaching 2.68 billion USD. Therefore, developing the framework is the next step that enables BIDV to introduce and offer sustainable financial products to the local market.

Le Ngoc Lam, BIDV’s CEO, said: “BIDV has developed a strategic vision for green lending, hence always prioritises funds to finance green projects and has achieved positive results. The development and issuance of a Sustainable Loan Framework will help BIDV provide sustainable financial products in accordance with international standards to domestic enterprises, and at the same time serve as a basis for BIDV to strengthen cooperation with international partners in the field of sustainable development in Vietnam."

BIDV’s framework has been developed with advice from the Carbon Trust.

Chris Stephens, the Carbon Trust’s Asia and Africa Director, said: “The need for sustainable finance to bridge Vietnam’s climate transition is more urgent than ever. BIDV’s Sustainable Loan Framework is a critical first step to mobilise the capital needed for sustainable solutions and drive impactful outcomes in the broader society.”

This collaboration between BIDV and the Carbon Trust was made possible under the ASEAN Low Carbon Energy Programme (LCEP), a 15 million EUR development programme funded by the United Kingdom Government.

Ronald Bohlander, Climate Counsellor at the British Embassy Hanoi, said: “The UK is committed to supporting Vietnam in delivering a green and just energy transition. We are delighted that BIDV is joining the increasing number of forward-thinking financial institutions across the world that is demonstrating their commitment to closing the financing gap for a green economic transition. The UK would like to encourage other Vietnamese banks and stakeholders to consider following in the footsteps of BIDV and be part of a growing coalition helping to deliver on Vietnam’s net zero transition objectives.”