On July 26, 2023, the Governor of the State Bank of Vietnam (SBV) signed Decision No. 1408/QD-NHNN issuing the banking sector’s Action Plan for the implementation of the National Green Growth Strategy for 2021-2030, and the Scheme on the tasks and measures to implement Vietnam’s commitments made at the 26th UN Climate Change Conference of the Parties (COP26).
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Accordingly, the issuance of the banking sector’s Action Plan is aimed at providing guidance for the organization and the implementation of the Government’s and the Prime Minister’s Decisions on green growth for the 2021-2025 period, with following specific objectives and requirements:
The banking sector shall join in implementing effectively the National Green Growth Strategy; implementing the banking sector’s tasks and measures in response to climate change, contributing to promoting the restructuring of the economy in association with the renovation of the growth model, aiming to achieve the goals of a prosperous economy, a sustainable environment and an equal society, heading towards a green, circular and carbon neutral economy, contributing to the global goal of slowing down the global warming.
The implementation of the National Green Growth Strategy, and the tasks and measures in response to climate change has been integrated into the banking sector’s strategies, the monetary policy management, the credit mechanisms and policies, the banking operations, as well as into the strategies and business plans of each and every credit institution in order to promote green credit, manage the environmental and the social risks, heading towards a green banking model.
Raising the awareness, the role and the capacity of the banking sector in granting credit to green sectors/areas, managing the environmental and social risks in credit granting to sectors/areas with high emission levels; developing environmentally-friendly banking products and services; enabling the economic sectors to promote green growth.
Moreover, the issuance of the Action Plan is also aimed at improving the capacity of policy-making and policy implementation in the banking sector in the direction of updating, developing and diversifying banking products and services to meet the demands for resources in support of green growth; strengthening the mobilization of green resources, gradually increasing the ratio of green credit outstanding; managing environmental and social risks in the credit granting operations of the credit institutions and the foreign bank branches, gradually approaching the international standards for green finance.
Developing digital banking models, applying IR 4.0 achievements in “greening” the banking operations; increasing the utilities and the customers’ experience; realizing the goal of sustainable development on the basis of enhancing the application of new and advanced technologies in the management and the provision of banking products and services in the direction of automating the processes and optimizing the business operations.
A number of key tasks and measures identified in the Action Plan include: (i) Developing and improving the legal frameworks, the policies; improving the capacity of the State management in alignment with the green growth targets, (ii) Promoting international cooperation to enhance the mobilization of resources for green growth; (iii) Improving the policy on the digital transformation for the sustainable development of the banking sector; (iv) Training and developing human resources in the banking sector to implement the National Green Growth Strategy; (v) Enhancing the information and communication on green growth and climate change responses.
The SBV entities, the Banking Association and the credit institutions, based on their functions, tasks and operations, are responsible for implementing the tasks and measures as identified in this Plan.
Decision No. 1408/QD-NHNN took effect from the date of signing.
Le Hang