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BUSINESS REPORT
C O VER S T OR Y

Committing capital

International financial institutions are actively supporting Vietnam in
its transition towards a green economy and sustainable development.

By NGOC LAN

he Asian Development Bank (ADB) a new financial tool for coal-fired thermal collaboratively seek financing opportu-
plans to mobilize resources of up power plants to cease operations and be nities to advance mutually-beneficial proj-
T to $3 billion for some 23 projects replaced by cleaner energy sources. ects and support US exporters looking to
in Vietnam during the 2023-2026 period, do business in Vietnam.”
ADB President Masatsugu Asakawa said Active support On March 6, meanwhile, the Interna-
at celebrations for the 30th anniversary Also in March, leaders from the US’s tional Finance Corporation (IFC)
of the Vietnam - ADB partnership held Export-Import Bank (EXIM) and the Viet- announced a new investment through a
by the State Bank of Vietnam (SBV) and nam Development Bank (VDB) signed a green loan facility that will help develop
the ADB on March 13 and attended by $500 million MoU during a visit by a del- more renewable energy projects in Thai-
Prime Minister Pham Minh Chinh. egation of leading US companies to Hanoi land, Indonesia, and Vietnam, with $64
The ADB’s cumulative support for from March 18 to 21. EXIM will work million going to the Sermsang Palang
Vietnam over the past 30 years has with the VDB to pinpoint potential infra- Ngan Company Limited (SPN) to address
amounted to some $18 billion, improving structure and renewable energy projects the region’s growing energy demand.
regional connectivity, strengthening envi- that accelerate Vietnam’s green transition. The IFC also invested some VND3.5
ronmental management and green invest- The agreement signals US support for trillion ($150 million) in Vietnam’s first
ment, promoting the transition to cli- Vietnam’s ambitious climate goals and the local currency sustainability-linked bonds
mate-resilient development, increasing energy transition needed to achieve them. (SLBs), issued recently by the BIM Land
access to education, health, and social “The MoU we signed demonstrates JSC and its subsidiary, the Thanh Xuan
services, and supporting the development our shared commitment to strengthening JSC, to allow them to improve water con-
of ethnic minority communities. The ADB the US-Vietnam commercial relationship servation and energy efficiency in three of
has also committed $2.1 billion to Vietnam and dedication to creating opportunities their hospitality assets. “Private capital is
for implementing the Just Energy Tran- that strengthen the economies of both key to Vietnam’s green transition,” said Mr.
sition Partnership (JETP) and the Energy our nations,” said EXIM President and Thomas Jacobs, IFC Country Manager for
Transition Mechanism (ETM), which is Chair Reta Jo Lewis. “We are excited to Vietnam, Cambodia, and Laos. “The issuance

20 Vietnam Economic Times April 2024 en.vneconomy.vn