GCPF and Nam A Bank to drive green lending in Vietnam
Vietnam’s Nam A Commercial Joint-Stock Bank has joined the ranks of the Global Climate Partnership Fund’s international network of partner institutions and has received a credit facility and technical support to launch its green lending activities in Vietnam. Benefiting from strong policy support of the Vietnamese government for renewable energy and energy efficiency projects, Nam A Bank is highly committed to green lending and positions itself as the country’s market leader in this area.
Nam A Bank was established in 1992 as one of the first private commercial banks incorporated in Vietnam and ranked 25th in terms of total assets and contributed capital at the end of 2017 among the commercial banks in the country. With total assets of USD 3.1 bn and 24 branches across the country at the end of 2018, Nam A Bank The bank predominantly focuses on corporate clients (63.9%), individuals (15.1%) and SME clients (4.1%).
In an effort to become more sustainable and reduce the country’s dependence on fossil fuel by promoting renewable energy and energy efficient projects, the Vietnamese government in late 2015 issued Vietnam’s Strategy for renewable energy development by 2030. Under this strategy, Vietnam promised to reduce GHG emissions through domestic resources by 8% by 2030, claiming that this contribution could be increased by up to 25% with international support.
In this context, Nam A Bank’s partnership with GCPF was welcomed by the State Bank of Vietnam, as it will enable the bank to become Vietnam’s first private commercial bank to launch green lending products for medium and small clients (SMEs and individuals).
Providing financing as well as support from the GCPF Technical Assistance Facility, the partnership will allow the bank to build a comprehensive range of green lending products to offer to its clients and further develop environment and social management practices. These products will include energy-efficient home appliances, buildings, transportation, agriculture as well as utility-scale renewable energy projects.
Commenting on the new partnership, Mr. Tran Ngoc Tam, CEO of Nam A Bank, underlined: “Sustainable economic development can only be achieved by promoting environmental-friendly practices and fighting global warming. By teaming up with an experienced partner that has ample experience in helping financial institutions in emerging economies build up a green lending offering we are thrilled to lead the way within Vietnam’s financial sector by developing a full green lending program.”
Speaking on behalf of GCPF, Chairperson of the Board Claudia Arce, added: “We are proud to further expand our network in the Mekong region. By partnering with Nam A Bank, GCPF will help design innovative solutions to further increase energy efficiency and reduce CO2 emissions.”
About Nam A Bank (namabank.com.vn)
Nam A Bank was established in 1992 as one of the first private commercial banks incorporated in Vietnam and currently manages total assets of USD 3.1 bn. Nam A Bank ranked 25th in terms of total assets and contributed capital at the end of 2017 among Vietnamese banks. The bank predominantly focuses on corporate clients, individuals and SME clients. Nam A Bank is Vietnam’s first private commercial bank to launch green lending products that can reach medium and small clients (SMEs and individuals).