IFC scales up support for Vietnam’s low-carbon economic growth
The World Bank’s investment arm International Finance Corporation (IFC) is ramping up support for the Vietnamese government to bolster sustainable finance and spur private sector participation, backing the country's climate adaption goals and driving sustainable growth.
IFC, the largest global development institution focused on the private sector in developing countries, pledged the latest support while Vietnam is transitioning to a low-carbon green economy with net zero emission targets by 2050.
The World Bank unit signed two memoranda of understanding (MoU) separately with Vietnam’s Ministry of Natural Resources and Environment, and the State Bank in the U.S. on May 11 to leverage private sector innovation and finance in the country's transition process. The deals were exchanged between signatories in Washington D.C. in the presence of visiting Vietnamese Prime Minister Pham Minh Chinh.
Under one of the two deals, the Ministry of Natural Resources and Environment will partner with the IFC to create a conducive environment for private sector climate investment.
Based on its ongoing support to the ministry to develop green project criteria, the IFC will also help develop and implement a policy and regulatory framework with an initial focus on key areas, including green procurement, green taxonomy, and waste management, especially plastic recycling and e-waste, among others.
"The strengthened cooperation between us will greatly contribute to the implementation of Vietnam's commitments in COP26 and other issues related to environmental protection and sustainable development," Tran Hong Ha, minister of Natural Resources and Environment, said in an IFC release.
Over the next five years, the finance corporation will scale up its support for Vietnam’s sustainable finance agenda led by the State Bank to facilitate green financial flows and align the banking sector with the Southeast Asian country's climate adaption goals.
State Bank of Vietnam Governor Nguyen Thi Hong said, "IFC's continued efforts to improve the ESG [environmental, social and governance] practices in the country's financial institutions will be of great help in greening the banking sector, scaling up green finance to its full potential to support sustainable economic growth."
The World Bank arm added it will, in partnership with the Swiss State Secretariat for Economic Affairs (SECO), further help the State Bank strengthen its sustainable finance framework in a range of areas, including ESG risks, climate risk management, and others, while continuing to help commercial banks build capacity in line with global sustainability and governance practices.
"Private sector investment is critical to achieving our climate change goals," said Stephanie von Friedeburg, IFC senior vice president, Operations.
"For Vietnam, which aims to become both a high-income and carbon-neutral economy in the next 30 years, private sector investment is doubly important. IFC will continue to work closely with the Government to ensure that the right policies and incentives are in place to help unlock this finance,” she said in the IFC release.
The government of Vietnam aims to decarbonize the economy and achieve carbon-neutral status by 2050 as committed at the 2021 United Nations Climate Change Conference (COP 26).
The efforts need huge investments over the next 30 years with state resources meeting only part of the financial need.
- Read More
Germany energy firm wpd plans $180 mln wind power project in central Vietnam
Germany’s energy company wpd plans to invest VND4,600 billion ($181.62 million) in building a 143 MW wind power plant in Vietnam’s central coastal province of Binh Dinh.
Energy - Fri, January 17, 2025 | 10:21 pm GMT+7
BRICS – new key export market of Indonesia
Indonesia’s non-oil and gas exports to the five major BRICS nations reached $84.37 billion in 2024, accounting for nearly 34% of the country’s total non-oil and gas export value, according to the country’s Central Statistics Agency (BPS).
Southeast Asia - Fri, January 17, 2025 | 9:54 pm GMT+7
Vietnam refinery operator BSR hits $2.6 bln valuation in bourse debut
Binh Son Refining and Petrochemical JSC, the operator of Vietnam’s first oil refinery Dung Quat, officially listed over 3.1 billion BSR shares on the Ho Chi Minh Stock Exchange (HoSE) on Friday, marking a rare "blockbuster" debut on the major bourse in recent years.
Companies - Fri, January 17, 2025 | 6:59 pm GMT+7
Two remaining weak Vietnamese banks transferred to VPBank, HDBank
The State Bank of Vietnam, the country's central bank, on Friday announced the mandatory transfers of two "weak" private banks under its special control, GPBank and DongA Bank, to VPBank and HDBank respectively.
Banking - Fri, January 17, 2025 | 4:32 pm GMT+7
DPPA not applied to non-manufacturing consumers, Vietnam ministry insists
Vietnam’s Ministry of Industry and Trade does not plan to extend the direct power purchase agreement (DPPA) mechanism to non-manufacturing consumers using the national grid.
Energy - Fri, January 17, 2025 | 3:50 pm GMT+7
Two foreign giants eye luxury marina, resort projects in central Vietnam
Swiss investment fund Finance Suisse and the world’s leading superyacht builder Palmer Johnson are looking for opportunities to invest in a super-luxury marina and a resort in the south-central Vietnam province of Binh Dinh.
Industries - Fri, January 17, 2025 | 3:18 pm GMT+7
Int’l investment funds interested in Danang’s financial center: city leader
International investors and financial investment funds from the U.S., Singapore, the Middle East, and Switzerland are highly interested in developing a financial center in Danang, says Ho Ky Minh, the central city’s Vice Chairman.
Economy - Fri, January 17, 2025 | 12:49 pm GMT+7
Samsung’s ex-HR head Na Ki-hong to lead Samsung Vietnam from next month
Na Ki-hong, deputy CEO of Samsung Vietnam and former human resources head at Samsung Electronics, will succeed Choi Joo Ho as CEO of Samsung Vietnam from February.
Companies - Fri, January 17, 2025 | 12:41 pm GMT+7
Vietnam, Poland agree to consider elevating relations to strategic partnership
Vietnamese Prime Minister Pham Minh Chinh and his Polish counterpart Donald Tusk have agreed that the two sides should consider upgrading relations to a strategic partnership soon, on the basis of high political trust and positive results of the 75-year traditional friendship.
Politics - Fri, January 17, 2025 | 10:59 am GMT+7
Japan’s Erex to operate wood pellet plant in northern Vietnam next month
Japan's renewable energy firm Erex is conducting trial production at its wood pellet plant in Vietnam’s northern mountainous province of Tuyen Quang and will put it into official operation in February.
Energy - Fri, January 17, 2025 | 10:54 am GMT+7
AI can’t compete with human in curiosity, creativity, emotional intelligence: FPT exec
AI lacks curiosity, creativity, and emotional intelligence - the qualities that humans must prioritize to maintain their competitive edge, says Hoang Nam Tien, former chairman of FPT Software and FPT Telecom under Vietnam's leading tech corporation FPT.
Companies - Fri, January 17, 2025 | 9:41 am GMT+7
HCMC’s Can Gio port project gets in-principle approval
Vietnamese Prime Minister Pham Minh Chinh has granted in-principle approval to the Can Gio International Transshipment Port project in Ho Chi Minh City, with investment capital exceeding VND50 trillion ($1.97 billion).
Infrastructure - Fri, January 17, 2025 | 8:17 am GMT+7
Vietnam's Big 4 lender Vietcombank to issue nearly 2.8 bln shares for dividend payment
Vietcombank will expand its chartered capital from VND55,891 billion to VND83,557 billion ($3.29 billion) via an issuance of shares to pay dividends, becoming the largest bank in Vietnam by chartered capital.
Banking - Thu, January 16, 2025 | 7:58 pm GMT+7
Indonesia exports $1.5 million worth of steel to New Zealand
Indonesian Trade Minister Budi Santoso on Wednesday sent off export consignments of welded beam steel, measuring 1,200 metric tons and valued at $1.5 million, to New Zealand, reported national news agency Antara.
Southeast Asia - Thu, January 16, 2025 | 7:17 pm GMT+7
Vietnam to build Ninh Thuan nuclear power plant within 5 years
Vietnam strives to complete building its Ninh Thuan nuclear power plant in five years (by 2030), towards the 100th anniversary of the Communist Party of Vietnam (1930-2030).
Energy - Thu, January 16, 2025 | 5:06 pm GMT+7
Malaysia, UK discuss elevating relations to strategic partnership
Malaysian Prime Minister Datuk Seri Anwar Ibrahim and his UK counterpart Keir Starmer discussed the elevation of bilateral relations to a strategic partnership during their talk in London on Wednesday.
Southeast Asia - Thu, January 16, 2025 | 3:30 pm GMT+7
- Consulting
-
Rethinking resilience: How typhoon Yagi redefines supply chain strategies in northern Vietnam
-
Remove roadblocks to lure foreign investment into Vietnam: HSBC exec
-
AI can be a game changer for Vietnam tourism
-
In trade and investment, ASEAN and China are better together
-
Investment opportunities in LNG-to-power projects in Vietnam
-
Pepper prices 2024: will the dream of 'black gold' repeat?