(Hanoi) The State Bank of Vietnam and the Macroeconomic Reforms/ Green Growth Programme of the Vietnam – German Cooperation co-organised a training program on “Green Banking and Green Credit”. The training program is held within the framework of the Macroeconomic Reforms/Green Growth Programme, implemented by GIZ Viet Nam on behalf of the German Federal Ministry of Economic Cooperation and Development (BMZ).

Participants in this training program are from relevant departments of the State Bank of Vietnam and selected local commercial banks. During 3 days in class training, with supports from experienced experts from Commerzbank – Germany, participants have opportunities to gain overall understanding on green economy, with focus on green banking and green credit; to grasp fundamental knowledge on systems of environment and social risk management in credit activities of banks and to be exposed to actual implementation of green banking, green credit, and environmental & social risk management in international as well as in local banks.

Participants have showed their particular interest in how Commerzbank finances renewable energy projects in general, and wind energy projects in particular. Experiences by Commerzbank in this field are quite impressive and valuable to local commercial bankers, as renewable energy is getting more and more importance in Vietnam’s economy.

Topic of social and environmental risks management also draws lots of attention from participants. Lots of discussions were initiated between experts and participants on how to identify sensitive topics for the purpose of E&S risks management, organisational structure of the bank to support sound and effective E&S risk management process.

As a continuation of in-class training, participants have been exposed to actual operation of a wind power plant in Binh Thuan province of Vietnam. Issues relating to technology used in the wind power plant, annual revenue, O&M costs, and difficulties in seeking financial sources… have been presented by developer and discussed with participants. In addition to this, participants have visited State Bank of Vietnam – Ninh Thuan and Binh Thuan branches and been introduced on implementation of green growth strategy in these provinces.  

The Green Banking & Credit Training Program is an activity to support enhancement of exposure to green economy in general, establishment of green credit mechanism and policies as well as development of qualified projects for financial resources from international climate funds, thus contributes to effective and successful implementation of the National Green Growth Strategy.