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COVER STORY

For future green finance
Mr. Lim Dyi Chang, Country Head of Commercial Banking at UOB Vietnam,
delivered an address to the Vietnam Connect Forum 2024 on green finance
and also spoke with VET.

he transition to a green economy moting investments in projects and ini- pathways across six key carbon intensive
represents a monumental opportunity tiatives that advance environmental sus- sectors that contribute nearly 60 per cent
T for Vietnam to achieve sustainable tainability. From renewable energy infra- of our entire lending portfolio.”
development while addressing the pressing structure to waste management systems, Trade and investment are also key
challenges of climate change, Mr. Lim Dyi green finance offers a pathway towards components of the transition to a green
Chang, Country Head of Commercial Bank- building a more resilient and environ- economy. Together with the wider accept-
ing at UOB Vietnam, said in an address to mentally-responsible economy. ance of carbon accounting and green cer-
the Vietnam Connect Forum 2024 on April At the heart of green finance are banks, tification mechanisms, banks like UOB
10 in Hai Phong. By harnessing the power the key institutions driving capital flows. play a crucial role in supporting businesses
of green finance and embracing a holistic By incentivizing green investments and in finance for working capital, long term
approach to sustainable development, Viet- incorporating environmental risk assess- investments, and to navigate complex sus-
nam can pave the way towards a brighter ments into lending practices, banks play tainability and environmental regulations.
and more prosperous future for its citizens a crucial role in directing funds toward For example, UOB Vietnam is actively
and the planet as a whole. sustainable projects. In this aspect, UOB implementing credit activities specifically
has been proactive in supporting the tran- designed to support Vietnam’s national
Catalyst for a sustainable future sition to green economies. “We committed agenda, such as its Power Development
According to Mr. Lim, green finance to net-zero carbon emissions in our entire Plan VIII (PDP8), which promotes a tran-
represents a transformative approach to business operations by 2050, and as at sition away from fossil fuels and the devel-
economic development, one that integrates end-2023 our green finance assets has opment of a carbon market.
environmental considerations into finan- reached S$44.5 billion ($32.6 billion),” he Compliance with international envi-
cial decision-making processes. It encom- told the gathering. “In terms of the decar- ronmental standards and regulations is
passes a wide array of financial instru- bonization of our existing lending portfolio, essential for unlocking the full potential
ments and mechanisms aimed at pro- we are 7-14 per cent below target reference of green finance. The recent upgrade of

22 Vietnam Economic Times April 15, 2024 en.vneconomy.vn