On March 14, 2023, in Hanoi, First Deputy Governor Dao Minh Tu of the State Bank of Vietnam (SBV) had a meeting with several leaders of the United Overseas Bank (UOB) Singapore.
At the meeting, First Deputy Governor Dao Minh Tu welcomed the mission from the UOB Singapore and the UOB Vietnam to visit and work with the SBV. The Deputy Governor shared that, following Vietnam’s commitments at COP26, the Government of Vietnam and the SBV had developed relevant action programs, set out the goals and roadmaps in order to mobilize robust and effective resources to invest into projects that could contribute to the improvement of the environment, the minimization of the negative effects, and the activation of green credit in Vietnam in a more dynamic way.
The Deputy Governor emphasized that, this is a hot topic not only in Vietnam but also in the world, with the financing for projects to protect the environment, reduce the CO2 emissions, develop sustainably, in which green credit plays a critical part. The Government of Vietnam pays a lot of attention to the financing and investment in green projects in the fields of energy, environmental protection; and has issued many directions regarding the banking sector’s solutions and policies to promote green credit.
First Deputy Governor Dao Minh Tu speaks at the meeting.
The SBV has been improving the fundamental legal frameworks for the green credit operations to develop healthily, following the recommendations; developing the portfolios of green projects and green credit to appeal to the banks, as well as the relevant mechanism and policies to mobilize and promote green credit growth, focusing on both the commercial banks and the businesses; raising the awareness, developing capacity for the banks’ officers and staff, the credit officers about green credit. It is also necessary to make sure that the management authorities develop a consistent understanding and consensus about green credit, and ensure full compliance with the legal frameworks on green credit, and pay more attention to these operations.
On the side of the UOB, Mr. Victor Vinh Tri Ngo. Chief Executive Officer of the UOB Vietnam, shared that the UOB Singapore is always ready to cooperate with and support the Government and the SBV to develop green finance. He believed that the UOB’s experience would become useful, contributing to strengthening the effectiveness of the cooperative relationship between the UOB and the SBV on sustainable development.
Mr. Eric Lim, Chief Sustainability Officer of the UOB Singapore, exchanged some information about green credit and green finance; risk management; human resource development and capacity building based on the practical requirements; ensuring transparency, publicity and accountability in order to develop green credit to a higher level, etc.
The leaders of the UOB Singapore and the UOB Vietnam speak at the meeting.
After that, Mr. Adrian OW, Managing Director and Head of the ESG Solutions, Sector Solutions Group of the UOB Singapore, also shared the UOB’s experience in developing a framework for the implementation of green credit to meet the requirements by the regulators in Singapore, such as: the financing of smart cities through the development of solar energy and other clean and renewable energy, etc.; the commercial financing and the green working capital flows to support import and export businesses; the transformation to ensure higher energy efficiency; etc.
Also at the meeting, the two sides exchanged information related to the new guidance, regulations and mechanisms on green credit, green portfolios and green criteria of Singapore; the sources of green finance and green assistance; the difference in the lending interest rates between the green credit and credit for other areas in Singapore; etc.
Expressing his appreciation for the UOB’s shared information, First Deputy Governor Dao Minh Tu added that, the UOB’s useful experience would help the SBV to develop appropriate mechanisms and policies, with due reference to the practical situations and experience in other countries. The Deputy Governor expressed his wishes that in the coming time, the UOB would continue to strengthen its cooperation and support, not only with the SBV but also with all Vietnamese banks.
LK