Ample room ahead for Vietnamese climate investment: IFC

Experts made this assessment at a seminar which opened with the theme of "Greening the financial sector - Accelerating the transition to a low carbon economy in Vietnam" on September 21 in Hanoi.

The event was co-hosted by the International Finance Corporation (IFC) and the State Bank of Vietnam.

Allen Forlemu, IFC's Regional Industry Director for Financial Institutions Group, Asia and the Pacific emphasised that Vietnam's investment climate opportunities will reach US$757 billion by 2030, especially in fields such as renewable energy, green building, efficient energy use, and transportation.

However, the climate finance sector in the nation is facing significant challenges in ensuring a strong alignment between major investment opportunities and environmental goals.

He therefore stressed the need to change the way banks operate and to transform towards sustainability, adding that IFC partners will work with financial institutions, corporations, and development partners around the world to provide financial access to millions of individuals and businesses as a means of narrowing the development gap, mobilising private capital, and support local capital markets.

At the seminar, foreign delegates also shared their experiences in supporting green banking transformation, especially with regards to opportunities for Vietnam.

Pham Thanh Ha, deputy governor of the State Bank of Vietnam, revealed that government agencies have also urgently issued a number of legal documents and policies relating to the environment in order to achieve the goal of reaching net zero carbon emissions in 2050 and move towards a green economy in the future.

To fulfill the latest climate goals, the country must focus on expanding green infrastructure, especially green energy, green transportation, and green buildings, in addition to accelerating the transition to a low carbon emission economy, said experts.