VIETNAM, November 12 –
HÀ NỘI – IFC, in partnership with the Swiss State Secretariat for Economic Affairs (SECO), signed a new memorandum of understanding (MoU) on Friday with the Việt Nam State Securities Commission to support the government’s efforts to leverage the capital market and enter cope with the climate. change through green and sustainable finance.
With the assistance of the IFC, SSC will promote the adoption of environmental, social and governance (ESG) standards and practices and implement TSR requirements among market actors.
This will help strengthen the sustainable financial framework and encourage innovative financial products such as green bonds, transition bonds, and sustainability-linked bonds to attract international investors looking for sustainable assets.
“Capital markets play a major role in Việt Nam’s transition to a climate-resilient low-carbon economy, helping to mobilize green capital,” said Nguyễn Đức Chi, Deputy Minister of Finance.
“Promoting green and sustainable finance is a long-term priority for the SSC. The IFC’s ongoing efforts to encourage the adoption of ESG standards and practices among public companies will help increase green finance, creating a sustainable capital market in Việt Nam,” said Phạm. Hồng Sơn, Vice Chairman of the Việt Nam State Securities Commission.
As Việt Nam aims to achieve a low-carbon growth model and carbon neutrality by 2050, these efforts are part of a new initiative between IFC and SECO, the Integrated ESG Program, to help regulators, investors, companies and partners in Việt Nam to manage. ESG risks and bottlenecks by promoting effective decision-making, and environmental and social (E&S) risk management.
“Strengthening the capacity of ESG is essential to achieve the climate commitments and the Sustainable Development Goals (SDGs),” said Werner Gruber, Head of the Swiss Cooperation Office in Việt Nam.
“Failure to assess ESG risks can lead to poor and unsustainable investment decisions. Our work with IFC aims to improve ESG standards and practices in Việt Nam to direct financial flows towards sustainable investments for a more comprehensive and sustainable economic development.”
Using the IFC’s ESG standards, its Performance Standards and Corporate Governance Methodology, the integrated ESG approach addresses critical ESG topics, including effective environmental and social risk management and systems, disclosure and transparency, climate risk and mitigation and gender.
“Greening the capital markets with a focus on improved ESG standards is a priority as Việt Nam aims to unlock private investment to achieve its twin goals of becoming a high-income and carbon-neutral economy by 2050,” said Kim-See Lim, IFC. Regional Director for East Asia and the Pacific.
“The IFC is excited to deepen its partnership with SSC and SECO to help encourage an enabling environment for private sector climate investment, which is critical to supporting sustainable and resilient growth in Việt Nam.” — VNS