BIDV and AFD elevate strategic cooperation relationship
Báo Đại biểu Nhân dân•29/05/2024
On May 28, at the headquarters of the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Mr. Le Ngoc Lam - General Director of BIDV and Mr. Jean Pierre Marcelli, Director of the French Development Agency (AFD) in Southeast Asia, represented the two agencies to sign a Memorandum of Understanding (MOU) to promote comprehensive strategic cooperation, especially in green finance activities towards sustainable development between the two sides. The MOU affirms that BIDV always cooperates closely and effectively with AFD to implement programs/projects in Vietnam, giving top priority to climate change response activities and equitable energy transition areas in accordance with the agreement of the Vietnamese Government in the JETP program, creating conditions for projects to access AFD's capital.
Representatives of BIDV and the French Development Agency (AFD) at the meeting. Photo: BIDV
Through the memorandum, AFD commits to strengthening cooperation with BIDV in the field of green finance, continuing to provide BIDV with preferential capital sources to finance sustainable development projects, providing technical assistance to enhance capacity, improve the Bank's social and environmental risk management, as well as supporting BIDV to participate in international networks/organizations operating in green finance development. Mr. Phan Duc Tu, Chairman of BIDV's Board of Directors, shared: "The Memorandum of Understanding is an important milestone, demonstrating the trust and willingness to cooperate in the development process of both BIDV and AFD in the new period. As a bank that is always a pioneer in implementing the policies and directions of the Government and the State Bank, BIDV has quickly incorporated sustainable growth and green growth into its business development strategy to 2025, with a vision to 2030. With the support from AFD, BIDV believes that the bank will continue to successfully implement green development goals and transform into a Net-Zero Bank by 2045, thereby contributing to the effective implementation of the green growth strategy in Vietnam." Mr. Jean Pierre Marcelli - Director of AFD Southeast Asia said: "Since starting operations in Vietnam in 1994, AFD has mobilized more than 3 billion EUR to support sustainable development goals and move towards a low-carbon economy. AFD highly appreciates BIDV's cooperation in developing green finance in Vietnam, with the rapid success of implementing the SUNREF green credit line worth 100 million USD and the upcoming climate credit line of 50 million EUR. Through the signing of the MOU, AFD affirms BIDV as one of the important strategic financial partners in the Asia-Pacific region and will continue to work with BIDV to promote climate finance in Vietnam through the bank's re-lending activities; in which, focusing on projects responding to climate change and sustainable energy transition. At the same time, as an active member in global and regional green finance networks, AFD ready to support and assist BIDV in participating in these organizations". BIDV is a key bank in the Vietnamese banking system and a leading bank in managing foreign trust funds. Since 2005, BIDV and AFD have strongly promoted the cooperative relationship between the two sides through the implementation of re-lending, effectively serving many AFD projects such as the Urban Infrastructure Improvement Project to minimize the impact of climate change for the coastal provinces of North Central Vietnam 127.6 million EUR; Ialy Hydropower Expansion Project 74.7 million EUR; Southern Power Grid Enhancement Project 80 million EUR; SUNREF Green Credit Limit 100 million USD... The Memorandum of Understanding signed between BIDV and AFD will contribute to promoting the strong development of the parties, creating sustainable values for the community.
AFD is a French state agency and public financial institution. AFD established a branch in Vietnam in 1994. AFD's core strategy to support the implementation of the Paris Agreement on climate change revolves around: low-carbon energy transition, strengthening the resilience and recovery of cities and territories to climate change and support for young people.During 27 years of operation in Vietnam, AFD has committed to supporting Vietnam with a total ODA capital of about 2.1 billion EUR for nearly 100 sustainable development programs and projects, distributed in important economic sectors such as: energy, transport, infrastructure adapting to climate change, environment... In particular, recently, AFD has focused on supporting the field of climate change response.This is very suitable for the requirements of Vietnam's economic and social development in the current period.
Comment (0)