Vietnam, November 12 –
HÀ NỘI – The IFC, in partnership with the Swiss State Secretariat for Economic Affairs (SECO), on Friday signed a new Memorandum of Understanding (MoU) with the State Securities Commission of Vietnam to support government efforts to leverage capital markets and address the environment. Change through green and sustainable finance.
With the support of IFC, SSC will promote the adoption of environmental, social and governance (ESG) standards and practices and enforce ESG requirements among market players.
It will help strengthen sustainable financial frameworks and encourage innovative financial products such as green bonds, transition bonds, and sustainability-linked bonds to attract international investors seeking sustainable assets.
“The capital market has a big role to play in Vietnam’s transition to a climate-resilient and low-carbon economy, helping to mobilize green capital,” said Deputy Finance Minister Nguyen Duc Chi.
“Promoting green and sustainable finance is a long-term priority for SSC. IFC’s continued efforts to encourage the adoption of ESG standards and practices among public companies will help scale green finance, creating a sustainable capital market in Vietnam,” Pham said. said Hồng Sơn, Vice Chairman of the State Securities Commission of Vietnam.
As Vietnam aims to achieve a low-carbon growth model and carbon neutrality by 2050, these efforts are part of a new initiative by IFC and SECO, the Integrated ESG Program, to help regulators, investors, companies and partners in Vietnam manage. ESG risks and constraints by promoting effective decision-making, and environmental and social (E&S) risk management.
“Strengthening ESG capacity is crucial to achieving climate commitments and the Sustainable Development Goals (SDGs),” said Werner Gruber, Head of the Swiss Cooperation Office in Vietnam.
“Failure to consider ESG risks can lead to poor and unsustainable investment decisions. Our work with IFC aims to improve ESG standards and practices in Vietnam to guide financial flows towards sustainable investments for more inclusive and sustainable economic development.”
Using IFC’s ESG standards, its performance standards and corporate governance methodology, the integrated ESG approach addresses key ESG topics including effective environmental and social risk management and systems, disclosure and transparency, climate risk and mitigation and gender.
“Greening capital markets with a focus on improved ESG standards is a priority as Vietnam aims to unlock private investment to achieve the twin goals of becoming a high-income and carbon-neutral economy by 2050,” said Kim-See Lim, IFC. East Asia and Pacific Regional Director.
“IFC is excited to deepen its partnership with SSC and SECO to foster an enabling environment for private sector climate investment, which is vital to support sustainable and resilient growth in Vietnam.” – VNS