VietinBank inks green cooperation pacts with Japanese financial institutions

VietinBank, a state-controlled Vietnamese lender, has struck cooperation agreements with Mitsubishi UFJ Financial Group (MUFG) for sustainable growth and the Japan Bank for International Cooperation (JBIC) for decarbonization and energy transition.

The JBIC said Monday that it has signed a memorandum of understanding with VietinBank on support for the nation’s decarbonization and energy transition activities, including the Vietnam entry of Japanese mid-tier and small-and medium-sized enterprises (SMEs).

Saturday’s signing ceremony was part of the Vietnam-Japan Economic Forum held in Tokyo during a four-day (December 15-18) visit to Japan by Prime Minister Pham Minh Chinh. Chinh, who led a high-ranking delegation to attend the ASEAN-Japan commemorative summit and conduct bilateral activities.

The cooperation was in line with the policy of the Vietnamese government’s target of reaching carbon neutrality and becoming a high-income country by 2050. In particular, the two sides would work on decarbonization efforts facilitated by the government’s issuance of the National Power Development Plan VIII (PDP VIII), bank officials noted.

The JBIC’s fourth medium-term business plan (released June 2021) aims at energy transformations towards the realization of a decarbonized society. It has already signed MoUs with other major Vietnamese banks, namely Vietcombank and BIDV, to support overseas expansion of Japanese SMEs and mid-tier enterprises.

The latest MoU will not only further progress towards its goal, but also strengthen the Japanese government’s Asia Zero Emission Community (AZEC) framework and participation in the Just Energy Transition Partnership (JETP), a JBIC statement said.

During a meeting between VietinBank and MUFG delegations a day earlier, MUFG chairman Mike Kanetsugu said they would support VietinBank with its environmental, social, and governance (ESG) practices, making the Vietnamese lender a leader in the field.

VietinBank chairman Tran Minh Binh and Kanetsugu also discussed preparations for major events to be held later this month, including one for promoting Japanese investments in Vietnam.