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GGGI Launched Training on Green, Social and Sustainability Bonds in Viet Nam

(Đọc bản Tiếng Việt tại đây)

Ho Chi Minh, 15 August 2023. The Ministry of Finance and Global Green Growth Institute (GGGI) has successfully conducted a training program on Green, Social, and Sustainability (GSS) bond issuance for public and private sector professionals in Viet Nam’s bond market. This marks the third technical training organized within the framework of the “Viet Nam Green Bond Readiness Program”, a collaborative initiative between the Viet Nam Ministry of Finance, GGGI, and the Government of Grand Duchy of Luxembourg.

Facilitated by the International Capital Market Association (ICMA*) at Ho Chi Minh Stock Exchange, the two-day training program “International experience on issuing green, social and sustainable bonds” introduced existing global best practices and provided step-by-step guidance on GSS bond issuance for over 70 delegates from government agencies, financial institutions, universities, and corporate issuers.

Discussions focused on best practices in preparing GSS bond frameworks, establishing internal processes for project appraisal and proceeds management, as well as how to conduct post-issuance impact reporting. The training program was an opportunity for participating delegates and experts to exchange viewpoints and thus provide insights for policymakers in developing the strategy and legal framework for green financial markets in Viet Nam. In recent years, the Ministry of Finance has taken on strong initiatives to promote the sustainable bond market in Viet Nam. These initiatives aim to enhance regulatory frameworks and incentivize investments. Mobilizing financial resources for green growth is one of the strategic tasks identified in Finance Sector Strategy to 2030 to facilitate Viet Nam’s transition strategy towards net-zero, while ensuring the balance between growth, social, environment, and climate change adaptation goals.

In his opening remarks at the training workshop, Mr. Nguyen Hoang Duong, Deputy Director General, Banking and Financial Institutions Department, Ministry of Finance emphasized the efforts needed for Viet Nam to continue economic growth and at the same time adapt to and mitigate the impacts of climate change. With Viet Nam’s determination and commitment to implementing its green transition and sustainable development goals, the demand for green capital is expected to increase rapidly in the coming time to meet the capital needs of green projects that can have a positive impact on the environment, he noted.

Viet Nam’s pursuit of a climate-resilient, net zero emissions development pathway would require additional investments of about 6.8% of GDP, or a cumulative US$368 billion by 2040. This estimation, provided by the Country Climate and Development Report by World Bank in 2022, underscores the crucial role of sustainable finance markets in mobilizing finance for this transition. 

In support of those endeavors, GGGI affirmed continued commitment. “GGGI would continue to be a trusted partner of the Ministry of Finance in various initiatives that reinforce the role of capital market in mobilizing finance for the net-zero transition and green growth strategies of Viet Nam.” Ms. Maria Cecilia Paña, Deputy Country Representative of GGGI Viet Nam noted.