Improving the efficiency of green financial development

Banking Academy organized the Workshop “Green Finance - a solution to promote sustainable development in Vietnam”. The workshop is within the framework of strategic cooperation between Banking Academy and the German Savings Banks International Cooperation Foundation (DSIK).

Assoc. Prof. Dr. Nguyen Thanh Phuong, Deputy Director of Banking Academy delivered the opening speech at the Workshop.

Speaking at the opening of the workshop, Associate Professor Dr. Nguyen Thanh Phuong, Deputy Director of the Banking Academy, said that in the context of the world facing enormous challenges from climate change, environmental pollution and resource depletion, finding green financial solutions to support sustainable economic development has become an urgent and important requirement. In Vietnam, green finance is a necessary direction in implementing the strategy of green growth, sustainable development, and responding to climate change and has achieved important initial results.

The State has issued many policy documents to guide the development of green finance, typically: Law on Environmental Protection (2020), Decision No. 1658/QD-TTg, dated October 1, 2021 approving the National Strategy on Green Growth for the period 2021-2030, vision to 2050; Decision No. 882/QD-TTg, dated July 22, 2022 approving the National Action Plan on Green Growth for the period 2021-2030... Along with that are legal regulations on green credit, such as: Directive No. 03/CT-NHNN, dated March 24, 2015 of the State Bank on promoting green credit growth and managing environmental and social risks in credit granting activities; Decision No. 1408/QD-NHNN, dated July 26, 2023 on the Action Plan of the Banking sector to implement the National Strategy on Green Growth for the 2021-2030 period and the Project on tasks and solutions to implement the results of the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change...

From a business perspective, Mr. Hoang Quoc Anh, Green Finance Expert, Deputy General Secretary of the Vietnam Association of Independent Members of Boards of Directors (VNIDA), CEO of Investment Banking - Vietnam Securities Business Association emphasized: The financial industry has funded companies with positive impacts on the environment and society, encouraging companies to manage their ESG risks. However, there are still some barriers such as balancing short-term financial performance and long-term financial impact, lack of consensus on how to define green/sustainable activities, weak legal framework, and lack of demand from consumers.

From a researcher's perspective, Dr. Doan Cong Khanh, Former Director of the Center for Trade and Environment, Institute for Trade Research, said: Green economic development is one of the country's development orientations for the period 2021-2030; The green development trend has been forming new rules of the game for trade and investment. Sustainable standards have become common requirements in all segments and markets. Therefore, we need to speed up the process of building mechanisms and policies to mobilize domestic and international financial resources through green financial instruments such as long-term green bonds, low interest rates; green credit; green insurance. Build ecological taxes or green taxes on economic activities that use natural resources and have negative impacts on the environment.

The Ministry of Finance needs to develop a list of environmentally friendly goods that are prioritized when implementing investment projects and public procurement; coordinate with the Ministry of Industry and Trade and the Ministry of Natural Resources and Environment to soon research, develop and promulgate a green consumption tax system to encourage the production, import and export of environmentally friendly goods; coordinate with the State Bank to amend credit mechanisms or credit guarantee funds to help businesses have access to capital to participate in commodity supply chains.

Overview of the Workshop

Mr. Ngo Binh Nguyen, ESG expert in the banking and finance sector, also said that currently, commercial banks are doing very well in deploying green credit sources. However, there are still many problems and shortcomings such as the lack of a set of green credit assessment indexes, leading to difficulties in valuing projects, which means it is difficult to access green capital. This requires a synchronous solution, as well as coordination and support from many levels.

To develop green credit, Mr. Tran Anh Quy, Head of the Department of Credit for Economic Sectors, State Bank of Vietnam proposed a number of solutions related to perfecting the legal framework for green credit, managing environmental and social risks in credit granting activities; focusing resources on promoting credit growth for green economic sectors and fields.

In addition, it is necessary to fully compile statistics on green credit in the banking system; strengthen international cooperation, create conditions for credit institutions to mobilize foreign capital to finance green projects with environmental and social benefits; encourage domestic credit institutions to promote ESG practices (Environment - environment, Social - society and Governance - corporate governance) and publish sustainable development reports; and strengthen training activities and experience sharing among domestic credit institutions...

Source: https://thoibaonganhang.vn/nang-cao-hieu-qua-phat-trien-tai-chinh-xanh-159122.html