Standard Chartered to invest US$8 billion in Vietnam’s sustainable development

Jose thanked Vietnam for supporting the bank’s operations in the country and affirmed that Standard Chartered is committed to maintaining its long-term operations there.

He proposed a number of cooperation areas in Vietnam, including insurance, trade, services and retail, as well as foreign direct investment attraction.

PM Chinh welcomed Jose’s proposals, saying the trend of sustainable development and green growth pursued by the bank is consistent with the general trend and Vietnam’s development policy.

However, he stressed the need to ensure fairness and justice in developing a green economy and adapting to climate change.

Vietnam has a low development level as it experienced past wars, and its industry grows more slowly than others, therefore it emits less greenhouse gas than developed countries.

In addition, as a developing country it has developed coal-fired power to run the economy. Therefore, Chinh expected developed countries share their technical know-how, provide financial assistance and train human resources for Vietnam in its clean energy transition.  

Vietnam tries to do its best to develop a green economy and respond to climate change in a sustainable and long-term stable manner, he told Jose.

He briefed Jose on Vietnam’s economic restructuring efforts, noting that the government encourages foreign banks to get involved in restructuring domestic banks that perform poorly in terms of human resources, capital and management capacity.

According to the Government leader, Vietnam is making every effort to improve its investment and business environment, including promoting digital transformation in the banking sector in order to attract more foreign investment. It also aspires to cooperate in the field of insurance and build large financial centres in the three regions of the country.

The doors are wide open to all foreign investors when Vietnam has signed 17 bilateral and multilateral free trade agreements (FTAs) with 60 countries around the world, including the world’s largest economies and markets, Chinh assured Jose.

The same day, Prime Minister Pham Minh Chinh met with leaders of the Global Wind Energy Council (GWEC), CEOs and managing directors of Orsted A/S and Lego.

He reaffirmed Vietnam’s commitment to reduce carbon emissions to zero by 2050, and at the same time called for fairness and justice when it comes to climate change adaptation.

GWEC and Orsted A/S executives shared the view that Vietnam has great potential, opportunities and competitive advantages for renewable energy development, especially wind power. In addition, it has an open investment environment, quality human resources, and a developed logistics system.

CEOs expressed their desire to make long-term investments in Vietnam and expand investment into a number of related fields such as power transmission and distribution. They proposed that the Government of Vietnam direct relevant ministries and agencies to quickly settle the procedures so that the projects can be implemented soon.

Prime Minister Pham Minh Chinh said that the Government of Vietnam is perfecting institutions close to reality and training human resources to meet the energy transition process. It is also developing policies, including those on public-private cooperation, to mobilise financial resources for this transformation.

The government leader suggested that the corporations continue to research and invest in power transmission and distribution networks in Vietnam to meet the development requirements of each region and locality, and ensure the interests of the parties.

Receiving Niels B. Christiansen, CEO of Lego Group, Chinh welcomed the firm’s continued expansion of investment in Vietnam, and suggested that Lego coordinate with Vietnamese ministries, agencies and localities to choose suitable investment locations, harmonize benefits and have high efficiency. He said he expects to see Lego products be marketed in Vietnam soon.

He affirmed that the Vietnamese Government is ready to discuss with investors to create the most favourable conditions for the win-win cooperation model.

PM Chinh is in Glasgow, Scotland, for a working visit to the United Kingdom and the 26th UN Climate Change Conference (COP26).