Standard Chartered is committed to investing US$8 billion for sustainable development and green growth in Vietnam.

Prime Minister Pham Minh Chinh (r) and Chairman of Standard Chartered Jose Vinals (l). Source: VNA

Chairman of Standard Chartered Jose Vinals revealed the plan during a meeting with Prime Minister Pham Minh Chinh on November 1 during the head of the government's trip to the UK to take part in the 2021 UN Climate Change Conference (COP26) in Glasgow.

Stressing the bank’s long-term commitment in Vietnam, Vinals expected further expansion activities in fields of insurance, trade, services, and retail in the country.

Prime Minister Chinh welcomed Standard Chartered’s initiatives in Vietnam, adding the bank’s pursuance of sustainable development and green growth is in line with the global trend and Vietnam’s strategy.

Chinh, however, noted the necessity to ensure balance in green growth and combating climate change.

According to Chinh, a long period of war, a low starting point, and difficult socio-economic conditions are making it hard for Vietnam to embark on green growth.

“With the country’s industrial development at a slower pace than others, the country also has a lower level of carbon emission compared to developed countries,” he added.

As Vietnam is considered one of the most vulnerable countries to climate change, Chinh said the country is trying its best to enhance its climate resilience and promote green development for sustainability and long-term stability.

Chinh said in the past, Vietnam had to turn to coal-fired power for economic development due to the unavailability of green energy technologies.

“During the transition process to renewables and green growth, Vietnam is in need of support from developed countries to address its difficulties, including training human resources, enhancing state governance in sustainable development, or incentives in green finance,” he said.

The prime minister said as the country is restructuring the economy, the Government encourages foreign banks to participate in the restructuring of weak banks in terms of human resources, capital, or corporate governance.

“Vietnam is pushing for improvement in the business environment, with a priority given to digital transformation in the banking sector for further attraction of foreign investment capital,” Chinh said.

“Vietnam welcomes cooperation with foreign partners in fields of insurance and construction of financial centers in the North, the Center, and the South,” he stated.

“Opportunities are vast for foreign investors as Vietnam has signed 17 free trade agreements with 60 countries and territories, including some of the world’s largest,” Chinh concluded.

Mou signings between Vietnamese enterprises and foreign partners.