Green Deposits - Investing for a Green Future

Not only is it an opportunity to increase financial value and a safe and effective investment channel, BIDV's Green Deposit product also represents a new step forward in the effort towards a green future for the community and society.

ESG - an inevitable trend in the world and in Vietnam

Currently, the world is facing major challenges in climate change and environmental pollution. Leading international organizations such as the United Nations (UN), the International Monetary Fund (IMF) and the World Bank (WB) have successively introduced 17 sustainable development goals (SDGs) along with legal frameworks, financial and technical support projects to guide countries to cooperate and invest in projects that have a positive impact on the environment. In Vietnam, the Government has taken concrete actions, demonstrated by participating in international conferences of the parties to the United Nations Framework Convention on Climate Change (COP), along with strong commitments to reduce net emissions to “zero” by 2050 and participating in the “Global Cooling Commitment” initiative. This proves that Vietnam not only considers environmental - social - governance (ESG) factors as a trend, but ESG is now considered the key to strong and long-term development in all fields .

In the trend of shifting towards sustainable development, the demand for capital to support ESG goals in the world in general and in Vietnam in particular has also grown significantly. The World Bank (WB) said that by 2040, to implement the green growth roadmap, net emissions are "zero", Vietnam needs to have an additional 6.8% of GDP investment annually, equivalent to about 368 billion USD. This shows that the demand for ESG capital in Vietnam is growing strongly, to meet this, there needs to be innovation in financial structure and policies, along with close cooperation between the Government, banks and businesses.

BIDV - pioneer in the Green Finance market

As one of the leading financial institutions in Vietnam, BIDV clearly understands its responsibility in accompanying the Government in implementing its commitments to combating climate change. BIDV has been pioneering the market in the field of green finance, demonstrating its responsibility to the community, contributing to the economic transition towards green and sustainable development. By the end of 2023, BIDV will be one of the largest Green Credit issuers in the market with a total outstanding loan balance of over VND 74,000 billion, accounting for ~4.2% of BIDV's total outstanding loan balance and 12% of the total outstanding green credit balance of the entire economy. The end of 2023 will also mark BIDV becoming the first bank in Vietnam to successfully issue Green Bonds according to the principles of the International Capital Market Association - ICMA in the domestic market with a scale of VND 2,500 billion.

Green Deposit - Green Future

Following the success of the Green Bond issuance, BIDV continues to pioneer the implementation of the Green Deposit product. Through this product, BIDV commits that customers' deposits will be used to finance green projects, energy saving, clean energy, renewable energy, emission reduction, and environmental protection. The Green Deposit has a capital mobilization scale of 3,000 billion VND in the first phase in 2024, with flexible deposit terms from 06 months or more.

Through investing in Green Deposit products, businesses have demonstrated their strategic vision for sustainable development, building a reputation and image towards responsibility towards the environment and community. This helps businesses increase their ability to attract investment capital, gain competitive advantage, expand market access and attract customers.

Enterprises using the Green Deposit product will be granted a certificate by BIDV, and BIDV will transparently announce projects using capital mobilized from Green Deposit in the Annual Report on BIDV's official website (www.bidv.com.vn).

Let's make a difference with BIDV on the journey for a green future!

BIDV

Source: https://bidv.com.vn/bidv/tin-tuc/tin-ve-bidv/tien-gui-xanh-dau-tu-cho-tuong-lai-xanh