Strategy "green growth" financial sector - banks

  regulations Roadmap "green bank" and "green finance" is the State Bank of Vietnam (SBV), the State Securities Commission and the agencies set up.

 

    This roadmap is given in the workshop discussed "Green Finance and Banking" by the Organization Development Cooperation GIZ (Germany) held in Hanoi on 25/06/2013.


    "Green Bank" only the operations of banks to encourage environmental activities such as the application of environmental standards as approved loan or grant preferential credits for projects that reduce CO2. "Green Finance" only funding for technology projects, industry or enterprise-oriented environment friendly.


    "SBV and is working with IFC to build documents on environmental risk management," said Cat Quang Duong, Deputy Head of Credit Department, State Bank said. In this regulation the evaluation criteria to the social environment risk when granting credit, investment principles, criteria analysis, environmental risk assessment when evaluating social investment and credit with how to manage environmental risks of social credit institutions and foreign bank branches. Circular SBV is drafting regulations risk management social environment, consult prepare draft 1, draft opinions III/2013 2nd quarter, finishing the procedures issued Circular I/2014 IV/2013 quarter or quarter.


    Besides SB, a few other agencies are also proposing specific solutions to banking and finance industry oriented to "Green Growth". Vu Chi Dung, Head of the International Cooperation Department of the State Securities Commission (SSC) that is expected by the year 2014 to 2015 will force companies to comply with regulations regarding sustainability reporting, or integrated in the annual report, the report even put environmental and social management companies to become one of the reviewed standards for listed companies. By the year 2015 - 2017, the Securities Act Amendment 2 is issued, report social and environmental management can become a mandatory listing standards since the time of writing effective law.


    Strategy "Green Growth" was issued by the Prime Minister in the National Strategy for the period 2011 - 2020 and vision to 2050 in January 9/2012. "Green Finance" and "Green Bank" is actually part of the "green growth", but this concept is still foreign to the financial sector - banks today.


    Survey tháng 6/2012 conducted by the central bank showed that 54 commercial banks, 91% admitted not green development policy, 35% of banks have never known the concept of "environmental issues and social" . According to the bank's response, 89% said that currently there is a lack of central bank regulations written about social environmental management in the financial sector.


    However, recently, this concept is mentioned and more enforcement in the financial sector - banks. The move towards the financial sector - banking on green growth takes place in the context of Vietnam is a lack of financial resources for green growth, while the financial sector - banks under international rules are expected to important contribution to this strategy.


    In addition to the new concept of green development in the financial sector - banks, experts say, convincing banks provide products and financial services is not easy green, due to the risks and cost of investing in green projects are usually higher than other conventional projects. Meanwhile, Vietnam enterprises are mainly small and medium, and weak financial capacity, Vietnam's commercial banks are now hardly qualified to provide financial products and services green.


    Whether it's a new concept and performance is tenuous, but the Assoc. TS. Nguyen Kim Anh, director of the Department of Personnel Department, State Bank, based on international experience, to implement the strategy of "green growth" is in need of social consensus and coordination between ministries, in order to balance benefits in terms of environmental protection and economic growth needs.


    "For emerging countries such as Vietnam, in terms of the budget is tight and difficult, the role of financial and banking blue is extremely important and must be involved from the outset of the components of society, besides the tools of tax policy and fiscal policy ", Assoc. Dr. Nguyen Kim Anh said.