Viet Nam’s Ministry of Finance and GGGI sign a Memorandum of Understanding on green finance cooperation

Hanoi, December 17, 2020 – Viet Nam’s Ministry of Finance and the Global Green Growth Institute (GGGI) will collaborate to strengthen, exchange, and share experience in green finance, thereby creating the foundation for the long-term development of a green financial market, and promoting green growth and sustainable economic development.

A Memorandum of Understanding (MoU) was signed by Vice Minister of Finance, Mr. Huỳnh Quang Hải, and Dr. Frank Rijsberman, Director-General of GGGI on October 29, 2020 to this effect.

Under the MoU, the two parties will work together to formulate and strengthen policies for a green financial market in Viet Nam, and to promote the mobilization of investments in green projects. This collaboration will involve a range of activities, including the green bond readiness program, building technical capacity, developing knowledge product, and sharing of international experiences.

The Government of Viet Nam is committed to respond to climate change, which is demonstrated by the range of national policies and concrete greenhouse gas (GHG) mitigation target according to the Intended Nationally Determined Contributions (NDCs). As the Government aims to promote green and sustainable economic growth, it is crucial to enhance the mobilization of funding resources to facilitate green agenda. In this context, Viet Nam’s Ministry of Finance has been very active in implementing green growth and sustainable development agenda. In 2015, the Ministry issued Decision 2183/QD-BTC on Promulgation of the Financial Sector Green Growth Action Plan up to 2020, in which developing green financial instruments is among its primary objectives. In 2018, Decree No. 163/2018/ND-CP on corporate bond issuance and Decree No. 95/2018/ND-CP on the issuance, registration, depositing, listing, and trading of Government debt instruments on securities market provided preliminary guidance on the issuance of sovereign and corporate green bonds. The Ministry recognizes the importance of mobilizing private capital for sustainability projects and Green Bond issuance has been high on its agenda.

Dr. Frank Rijsberman commented that: “Green Financing has become a propeller of the global sustainability agenda and will play a critical role in meeting Vietnam’s climate targets. The government’s thrust towards transforming Vietnam into a low-carbon economy offers an unprecedented opportunity to leverage green finance as a growth accelerator. GGGI looks forward to supporting Viet Nam to develop its fast-growing economy in a way that is environmentally sustainable, and provides new, greener opportunities that benefit all Vietnamese”.

GGGI has worked with the Government of Viet Nam as a trusted advisor since 2012. Its experience in supporting Viet Nam in implementing green growth in various sectors including green cities and renewable energy positions GGGI as a leading international organization with in-depth local understanding on green growth. GGGI will continue its support to the Government of Viet Nam to develop a sustainable financial market that will provide a constant flow of capital for green growth implementation.