Vietnam’s Ministry of Finance ready to issue green bonds next year
VIETNAM’S Ministry of Finance is working with other ministries to issue green bonds next year, an official said.
Nguyen Hoang Duong, deputy director of the ministry’s Department of Banking and Financial Institutions, made the statement at a seminar held in Ho Chi Minh City on Monday.
Green bonds are a type of debt issued by public or private institutions which use the funds for environmental purposes.
“Due to the impact of the Covid-19 pandemic and the slow progress of some public investment projects, the plan to issue green bonds has also been extended,” Duong said.
He said the ministry has worked with donors and a number of businesses to boost the issuance of green bonds in the near future.
The ministry has also sought international funds to support businesses in green bond issuance and consulting.
Green bonds were an investment field with great potential for development, said Nguyen Hoai Thu, Head of Investment, Public Equities & Fixed Income at VinaCapital.
Thu said green bonds were related to clean investment, including environment, society and corporate governance as well as clean energy.
In Vietnam, the government’s sustainable development orientation to 2030 also focuses on green growth as well as green financial products, including green bonds.
According to experts, green bonds are also a type of debt, but the proceeds from green bond issuance must be used to implement green projects.
This will be an important capital channel for investors interested in sustainable development factors, especially in the context of climate change, creating favourable conditions to attract large capital for green growth and sustainable growth in the future.