Vietnam central bank asks Shinhan Bank for help in green banking development

The State Bank of Vietnam (SBV), the country’s central bank, has urged Shinhan Bank Vietnam and its parent entity Shinhan Financial Group to help Vietnamese commercial banks with green banking development.

SBV Deputy Governor Pham Quang Dung made the request at a Wednesday meeting with Shinhan Financial Group chairman and CEO Jin Okdong. The suggestion is in line with Vietnam’s target of net zero emission in 2050, along with green finance and green economy goals, Dung added.

In reply, Jin Okdong said he appreciated the support from the Vietnamese government and the SBV for its operations. Shinhan Financial Group is willing to share experiences for Vietnam to fulfill its environmental, social and governance (ESG) targets as well as sustainable development and economic growth goals.

Shinhan Bank Vietnam earned a net income of KRW141.3 billion ($102 million) in the first half of 2024, up 12.1% year-on-year, according to a report of Shinhan Financial Group.

As a result, Shinhan Bank Vietnam accounted for the biggest portion of Shinhan Bank’s overseas business, with 35%. Other major contributors were Shinhan Bank Japan with 18%, overseas branches of Shinhan Bank with 26%, and others with 21%.

In the six-month period, Shinhan Bank recorded a net income of KRW410.8 billion ($296.6 million) from overseas business, up 32.4%. The figure accounted for 15% of Shinhan Financial Group in the period.

Vietnam’s economic growth could reach 6% this year, thanks to improvements in public investment disbursement and the booming tourism sector, Shinhan Bank Vietnam said in its latest forecast.