Green banking in Agribank's development strategy

  • Nguyễn Thị Thu Hà


In recent years, Vietnam has proactively taken actions in accordance with international commitments and agreements aiming to respond to climate change and heading towards green development. In particular, the Prime Minister made strong commitments at the 26th Conference of Parties to the United Nations Framework Convention on Climate Change (COP26) with the determination to achieve “net zero” by 2050. Accordingly, the implementation of green banking and sustainable development is an inevitable trend in the business strategies of many banks in the world and becoming mandatory criteria in methodology of leading international credit rating agencies. The State Bank of Vietnam (SBV) has issued many policies and guidelines to encourage credit institutions (CIs) in green transformation and environmental risk management in credit extension activities, which include: Green banking development project in Vietnam; Orientation for green banking development in the Banking Development Strategy to 2025, with a Vision to 2030. As of June 30th, 2023, outstanding green loans reached nearly VND 528.3 trillion, accounting for approximately 4.2% of the total outstanding loans of the entire banking system. In that context, Agribank has played a pioneering role in the banking industry towards sustainable development and combating climate change. Recently, Agribank has implemented many action programs promoting "For the Green Future", such as: conducting "greening" credit, prioritizing clean agriculture and high-tech agriculture; implementing many social security activities across the country; issuing regulations on environmental risk management in credit extension activities. There  is a strong need to have an appropriate roadmap, especially to integrate the green banking development strategy into Agribank's business strategy to ensure that all employees can implement consistently from policies to specific actions, thereby creating great strength to contribute to environmental protection.

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