BIDV suggests financial solutions to advance sustainable development

DNHN - Recently, at the Trade Finance Forum 2024, a representative of the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) proposed several financial solutions to promote trade finance to combat climate change.

The Trade Finance Forum 2024 was co-organised by the Asian Development Bank (ADB) and the World Trade Organisation (WTO) and took place at the ADB headquarters (Malina City, Philippines) on March 20, 2024. The forum was attended by Mr Masatsugu Asakawa, President of the ADB, Ms Ngozi Okonjo-Iweala, Director-General of the WTO, and experts in trade finance, senior experts in the field of finance and sustainable development from the United Nations, ADB, WTO, etc. BIDV was the only Vietnamese bank invited to participate and share its views at the forum.

The forum focused on discussing the mobilisation of resources and the orientation of trade finance activities to support the transition of the economy towards a green and sustainable direction, aiming for Net-Zero. The BIDV representative participating in the discussion at the forum, Ms Pham Minh Chau, Deputy Director of BIDV’s Wholesale Product Policy Department, shared the bank’s successful experience and proposed several financial solutions to promote trade finance to combat climate change, specifically: Promoting international cooperation, sharing knowledge on the development of trade finance products and financing green supply chains; digitalising the trade finance process; researching and developing a roadmap for implementing ESG risk management in credit activities in general and trade finance in particular… BIDV’s solutions received the attention of the speakers and experts attending the forum.

In Vietnam, BIDV is a pioneering commercial bank with positive results in promoting sustainable development. BIDV has clearly defined the viewpoint of “sustainable development” in its development strategy and long-term vision with the method: Green Governance -> Green Action -> Green Environment… BIDV has proactively pioneered the implementation of many activities to promote sustainable development: It is the first domestic financial institution to sign a Memorandum of Understanding on comprehensive cooperation with the Ministry of Natural Resources and Environment to work towards achieving strategic goals on environmental protection, responding to climate change, and promoting sustainable green finance in Vietnam; It is the first domestic bank to issue an Environmental and Social Risk Management Framework in credit granting activities… BIDV prioritises credit capital, and strengthens cooperation with international organisations to finance green projects and sustainable development projects; as of December 31, 2023, BIDV has financed 1,738 green projects with a total outstanding balance of 3.03 billion USD, accounting for 4.25% of the total outstanding balance and is the market leader in financing green projects.

BIDV is also the largest partner bank of the ADB in Vietnam in the field of trade finance and supply chain finance with a trade finance limit of 290 million USD. Over the past time, BIDV has implemented work programs and exchanged with the ADB to promote the cooperative relationship between the two sides, especially within the framework of the Trade Finance and Trade Supply Chain Finance Program (TSCFP). With positive results in the cooperative relationship, BIDV has been honoured by the ADB many times as the Leading Partner Bank in Vietnam.

Tin Nguyen