Five days of insightful, diverse, and progressive exchanges of best practices in developing sustainable finance markets brought together an inter-ministerial delegation from the Government of Viet Nam and key sector players in Luxembourg’s sustainable finance ecosystem.

Luxembourg, November 8, 2023 — Continuing their commitment to support the development of a robust green bond market in Viet Nam, GGGI Viet Nam, with support from the Government of the Grand Duchy of Luxembourg and GGGI Luxembourg, organized a study tour to Luxembourg for an inter-ministerial delegation of Viet Nam, headed by Ms. Pham Thi Thanh Tam, Deputy Director General, Department of Banking and Financial Institutions, Viet Nam Ministry of Finance.

The study tour is part of a series of capacity building activities under the “Viet Nam Green Bond Readiness Program”, a collaborative initiative between the Viet Nam Ministry of Finance, Ministry of the Environment, Climate and Sustainable Development of Luxembourg (MECSD) and GGGI. Taking place from 16 to 20 October 2023, the study tour aimed to strengthen and enhance the technical capacity of the Government of Viet Nam in promoting and implementing sustainable finance initiatives.

Green and sustainable finance have important roles to play in promoting carbon reduction projects across sectors. Given the Vietnamese Government’s strong commitment to achieving net zero by 2050, the demand for capital to fund environmentally and socially impactful projects is expected to grow significantly. Accelerating the development of the sustainable finance market can serve as a driving force behind Viet Nam’s transition to a sustainable economy and the realization of its net zero strategies.

In this context, the study tour was an opportunity for sharing of best practices from Luxembourg’s sustainable finance sector players to the delegation of officials from various ministries involving in the process of developing sustainable finance strategies for Viet Nam. Discussions centered around how to accelerate sustainable finance market for the net-zero transition, practical experiences in issuing a sovereign sustainable bond, and regulatory efforts of Luxembourg and the EU in promoting transparency in sustainable finance markets. A success factor from Luxembourg experience in mainstreaming sustainable finance is a flexible approach and continued efforts to coordinate and communicate sustainability agenda across public and private sectors. The introduction of sustainability disclosure guidance, as well as a potential labelling regime developed at EU level is a catalyst for enhancing the transparency of the market. The visit offered insights into fostering impact investment and financial inclusion, supported by technology and innovation to promote green inclusive finance practices across emerging and developing economies, including Viet Nam.

Viet Nam is taking steps to unlock the potential of green economy, and at the same time foster finance for the net-zero transition pathway. The opportunities to learn from Luxembourg public and private counterparts would be beneficial for harmonizing knowledge and enhancing capacities of the Government of Viet Nam in moving the market forward, especially in developing green bond market.

With participation in the 2023 Sustainable Finance Week organized by the Luxembourg Finance Labelling Agency for responsible investment LuxFLAG, the study tour was an opportunity for the delegation to introduce about Viet Nam’s growing capital market and connect with potential investors in sustainable investment.

During the week, the Ministry of the Environment, Climate and Sustainable Development of Luxembourg, the Viet Nam Ministry of Finance, and GGGI successfully concluded the Project Steering Committee meeting of the “Viet Nam Green Bond Readiness Program”.

In her remarks, Ms. Tam Phan highlighted that in recent years, the Viet Nam Ministry of Finance has been coordinating with other ministries and government agencies to build an overall orientation for the development of the green bond industry, including determining general directions, implementation methods, and allocation and use of financial resources to promote green growth. On behalf of the Viet Nam delegation, Ms. Tam Phan expressed appreciation for the support by the Ministry of Environment, Climate and Sustainable Development of Luxembourg and GGGI in advancing the development of green finance in Viet Nam. The Viet Nam Ministry of Finance wished to continue the fruitful cooperation with the Grand Duchy of Luxembourg and GGGI to further strengthen the domestic green finance market.

Representatives from the Viet Nam Ministry of Finance, Ministry of the Environment, Climate and Sustainable Development of Luxembourg, Luxembourg Ministry of Finance, and GGGI in the “Viet Nam Green Bond Readiness Program” Steering Committee Meeting

“The Grand Duchy of Luxembourg and Viet Nam look back at a strong and fruitful cooperation journey since the ninetieth. The past years have been crucial in strengthening our partnership in the fields of climate change and sustainable finance. Today, I am pleased to see that Viet Nam and Luxembourg’s climate priorities are aligned, which sets a perfect scene for futher collaboration in both our countries’ decarbonization journeys”, said Dr. André Weidenhaupt, Director General at the MECSD.

The Viet Nam delegation comprised technical government officials from relevant departments of Ministry of Finance and line ministries, including Banks and Financial Institutions Department, Department of Investment, State Treasury, and Ministry of Planning and Investment, Ministry of Justice, and Office of the Government.

During the week-long study tour, the delegation attended a series of bilateral meetings and knowledge sharing sessions with Luxembourg counterparts, including Luxembourg Ministry of Environment, Climate and Sustainable Development, Luxembourg Ministry of Finance, Commission de Surveillance du Secteur Financier, Luxembourg Sustainable Finance Initiative, Luxembourg for Finance, Luxembourg House of Financial Technology, Luxembourg Green Exchange, European Investment Bank, Luxembourg Chamber of Commerce, LuxDev, and other stakeholders.