The ministry and bank BIDV signed a MoU to promote sustainable green financial development. (Photo: VNA)

The May 26 document aims to help enterprises access the bank's capital, attract investment for responding to climate change, and transform low-carbon economic models and projects on energy transformation for the country’s sustainable development.

It will also strengthen the role of the financial-banking system in encouraging and supporting domestic economic sectors to participate in implementing activities to reduce environmental pollution and respond to climate change and business development towards sustainability.

The ministry will assist the bank in strengthening its capacity for environmental risk assessment and developing criteria for evaluating environmental risks for projects, as this is a prerequisite for developing sustainable financial products in accordance with international practices and suitable for the Vietnamese market.

Speaking at the signing ceremony, Minister of Natural Resources and Environment Tran Hong Ha emphasized that the cooperation between them would promote the forming and expanding of green bonds and credits as well as carbon market development.

Phan Duc Tu, Chairman of BIDV's Board of Directors, said the MoU sends out positive signals about opportunities for companionship and linkage between regulatory agencies, commercial banks and the business community in setting the market's development orientation, and setting forth solutions to environmental protection and climate change response. These are strategic priorities in the fields of business, finance and banking, contributing to the effective implementation of the green strategy in Vietnam as well as the international commitments that Vietnam has signed, he said.