ADB is ready to support Vietnam in developing a green financial market

ADB is ready to support Vietnam in developing a green financial market 22/01/2024 03:11:00 159

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Deputy Minister Le Tan Can held a reception and meeting at the Ministry of Finance's headquarters on January 22 in the morning. Several functional units within the Ministry of Finance were represented by Lanh Directing representatives during the meeting.

Deputy Minister Le Tan Can held a reception and meeting at the Ministry of Finance's headquarters on January 22 in the morning. Several functional units within the Ministry of Finance were represented by Lanh Directing representatives during the meeting.

Upon Mr. Winfried Wicklein's arrival and his ADB delegation's cooperation with the Ministry of Finance,
Deputy Minister Le Tan Can was warmly received (Photo: H. Tho)

Deputy Minister Le Tan Can stated during the meeting that the Asian Development Bank (ADB) has long been a significant ally of the Vietnamese government, offering financial resources and advise on policy. It is critical to support the Ministry of Finance in enhancing the institutions and resources for public financial management. The Asian Development Bank (ADB) has made timely contributions to numerous fields in the realm of public finance by offering technical assistance and policy advice.

As per the Deputy Minister, the Asian Development Bank (ADB) has identified 23 projects worth almost 4 billion USD that are projected to be implemented in Vietnam between 2024 and 2026. The success of domestic investment procedures and project completion will determine whether or not a loan may be secured during this time. The Ministry of Finance of Vietnam believes that ADB will keep working closely with the Government and Ministry of Finance to identify solutions and make sure that the interests of both parties are balanced in order to expedite the process of preparing talks and signing agreements. Competent Vietnamese authorities have approved the project's ADB loan for capital use.

Deputy Minister Le Tan Can spoke at the meeting (Photo: Htho)

Regarding the direction of the two parties' cooperation, Deputy Minister Le Tan Can said that ADB's assistance goals for Vietnam are largely appropriate given Vietnam's growth orientation in the near future, according to the Strategy ADB's country partners for the period 2023–2026. The Deputy Minister thinks that there will be plenty of chances for ADB and Vietnam to communicate and work together to address problems that both parties find important, particularly in relation to initiatives aimed at addressing climate change and advancing the green, digital, and circular economies. Vietnam will require significant financial resources in the future to meet the goal of socio-economic development on schedule, the Deputy Minister stressed. In addition to mobilizing domestic resources, the Ministry of Finance hopes to enlist additional funding from foreign institutions, such as the Asian Development Bank (ADB). "The Ministry of Finance is hoping that ADB would keep an eye on things and provide help so Vietnam can get access to the most favorable capital sources. Still, make sure that the public debt safety standards are accepted by the appropriate authorities to guarantee socioeconomic effectiveness.

The Deputy Minister revealed that in terms of creating a carbon market, the Ministry of Finance is tasked with leading the effort and liaising with other relevant ministries and branches. It will also establish a financial management mechanism for market activities and present it to the Prime Minister for approval of the Carbon Market Development Project in Vietnam. Under the Prime Minister Government's directive, the Ministry of Finance is now finishing up the Draft Project. In order to quickly finish the legal framework and green financial policies, the Ministry of Finance anticipates receiving assistance from ADB in this area in the near future. Enhance financial institutions' and companies' capabilities and establish connections with the global green finance sector to support Vietnam's environmentally conscious and sustainable economic growth.

Mr. Winfried Wicklein spoke at the meeting (Photo: H. Tho)

In his remarks during the meeting, Mr. Winfried Wicklein stated that a number of elements, such as project preparedness and priority and suitability in line with the parties' respective legal restrictions, will determine whether or not additional loans can be mobilized. ADB is prepared to share and assist Vietnam in putting these contents into practice, according to Mr. Winfried Wicklein.

According to Mr. Winfried Wicklein, the Ministry of Finance has been working closely with ADB lately to give Vietnam more useful assistance. ADB has implemented numerous reforms recently, one of which is the approval of the capital adequacy framework, which would increase ADB's lending capacity to member nations. ADB also offers a number of loans to ASEAN nations to help with policies related to infrastructure development and construction, environmental enhancement, climate change mitigation, industry and field development, and more. In the near future, ADB hopes to deepen its cooperation with Vietnam in these areas in order to build stronger relationships between the two countries.

Translator: Thúy Nga

 

 

 

 

 

 

 

 

 

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