Hanoi, Viet Nam, November 18, 2024 – Marking a milestone for the Viet Nam’s green bond market, the Joint Stock Commercial Bank for Foreign Trade of Viet Nam (Vietcombank), one of the leading state-owned commercial banks in Viet Nam has successfully issued VND 2,000 billion (approx. US$80M) of green bonds.

In its continuous efforts to catalyze the green finance sector in Viet Nam, GGGI brought its global and local expertise to advise Vietcombank on developing the green bond framework for this landmark issuance, which adheres to both the Green Bond Principles of the International Capital Market Association (ICMA) and the Vietnamese law. The green bond framework received a Medium Green rating by S&P Global, the second-highest level in S&P Global’s six-tier Shade of Green rating scale.

As Viet Nam remains steadfast in its commitment to green growth, it is crucial to align the financial sector, particularly the banking sector, with the overarching goals of the country on both sustainable development and net-zero emissions by 2050.

Ms. Helena McLeod, Acting Director-General of Global Green Growth Institute (GGGI) said: “GGGI is proud to partner with Vietcombank on this green bond issuance. This success reflects the growing investor demand and confidence in green growth projects, signaling strong market potential for directing private capital toward Viet Nam’s net-zero transition. With the support of the Grand Duchy of Luxembourg, this issuance marks an expansion of GGGI’s technical assistance towards Viet Nam’s net-zero 2050 goal.”

Under the green bond framework, the use of proceeds shall be allocated to projects in seven key sectors including renewable and clean energy, sustainable transport, sustainable water management, green construction, waste management and resource efficiency, sustainable agriculture – forestry – fisheries and biodiversity conservation, and energy efficiency. The issuance is expected to play part in channeling the much-needed capital to address the increasing demand for investment in environmentally friendly projects in the country, supporting Viet Nam in its net-zero transition.

S&P Global noted, “Vietcombank’s green credits contribute to addressing the most urgent environmental issues facing the country, such as carbon emissions and pollution.”

Mr. Vu Quang Dong – Vietcombank’s Acting Head of Global Markets Division said: “As a leading bank in Viet Nam, we recognize our responsibility to develop the green financial market, promote sustainable development and support the economy in reducing emissions.” He shared that the issuance of green bonds worth VND 2,000 billion has been successful in a short time, receiving positive responses from investors and reputable international organizations, affirming the quality and leading role of Vietcombank in this field. “We will make efforts to promptly introduce new products and new steps to meet the trend of green finance and green economy and commit to actively contributing to building a sustainable and friendly Vietnamese economy with the environment,” he added.

The successful issuance adds to GGGI’s growing technical support for issuances of green bonds across sectors in Viet Nam. The support is part of the Viet Nam Green Bond Readiness Program, funded by the Government of Luxembourg, to foster the development of a robust green bond market in Viet Nam.