Decision No. 1552/QD-NHNN dated August 06, 2015 introducing the action plan of the banking sector for implementation of the national strategy for green growth by 2020

DECISION

INTRODUCING THE ACTION PLAN OF THE BANKING SECTOR FOR IMPLEMENTATION OF THE NATIONAL STRATEGY FOR GREEN GROWTH BY 2020

THE GOVERNOR OF THE STATE BANK

Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;

Pursuant to the Law on Credit Institutions No. 47/2010/QH12 dated June 16, 2010;

Pursuant to the Decree No. 156/2013/ND-CP dated November 11, 2013 on functions, tasks, powers and organizational structure of the State Bank of Vietnam;

Pursuant to the Prime Minister’s Decision No. 1393/QD-TTg dated September 15, 2012 approving the national green growth strategy;

Pursuant to the Prime Minister’s Decision No. 403/QD-TTg dated March 20, 2014 approving the national green growth action plan for the 2014 - 2020 period;

At the request of the Director General of the Department of Credit for Economic Sectors,

HEREBY DECIDES:

Article 1. Promulgated together with this Decision is the action plan of the banking sector for implementation of the national strategy for green growth by 2020 (hereinafter referred to as “the Plan”).

Article 2. This Decision takes effect from the date on which it is signed.

Article 3. Head of Office of the State Bank, Director General of the Department of Credit for Economic Sectors, heads of affiliates of the State Bank of Vietnam, Directors of State Bank branches of provinces and central-affiliated cities, Chairpersons of Boards of Directors, Chairpersons of Members’ Councils, and general directors (directors) of credit institutions and foreign bank branches shall implement this Decision./.

ACTION PLAN

OF THE BANKING SECTOR FOR IMPLEMENTATION OF THE NATIONAL STRATEGY FOR GREEN GROWTH BY 2020
(Enclosed with the Decision No. 1552/QD-NHNN dated August 06, 2015 by the Governor of the State Bank)

For the purposes of implementation of the Prime Minister’s Decision No. 1393/QD-TTg dated September 25, 2012 approving the national green growth strategy; the Prime Minister's Decision No. 403/QD-TTg dated March 20, 2014 approving the national green growth action plan for the 2014 - 2020 period, the State Bank of Vietnam develops a plan to specify the task assignment and effectively implement the Decisions with the following main contents and tasks:

1. Objectives and requirements

- To deploy the national green growth strategy, facilitate green growth, strive for a low-carbon economy, reduce greenhouse gas emission, utilize energy and natural resources and boost green manufacturing and service industries and green consumption.

- To improve the awareness, role and capacity of the banking sector in extending credit to green economic sectors and developing products and services so as to support enterprises in stimulating green growth.

2. Main tasks

2.1. Reviewing, modifying and completing banking and credit institutions supportive of green growth objectives

a) Developing the direction for green growth in the banking sector, including:

- Reviewing and adding green credit - banking contents to the strategy for development of the banking sector by 2020.

- Developing schemes for green banking growth in Vietnam.

b) Completing suitable mechanisms and policies that are supportive of green growth objectives, including:

- Reviewing and incorporating environmental protection requirements into credit extension policies and regulations of credit institutions for customers.

- Reviewing, researching and formulating regulations/guidelines for credit institutions to evaluate environmental and social risks from credit extension.

2.2. Improving capacity of the banking system for green banking - credit implementation

a) Organizing training to improve capacity of credit institutions and individuals participating in developing and deploying green banking - credit mechanisms, policies, programs and products, including:

- Organizing training course, seminars and conferences on topics related to green credit - banking in Vietnam for officials of the State Bank and credit institutions.

- Organizing surveys/field trips to countries that possess advanced green financial - banking policies and activities to enrich knowledge and exchange experience with international organizations regarding matters related to development and deployment of green credit - banking policies.

- Periodically providing technical consultancy on development and deployment of green banking development strategies, green credit policies and green loan programs suitable to Vietnam’s circumstances.

- Assisting scientific research on and implementation of topics of service to development of green credit - banking strategies and policies.

b) Educating officials, public employees and workers of the banking sector on the roles and objectives of the national green growth strategy; raising their awareness on effective and economical use of energy and natural resources and environmental protection in daily life and public procurement; enthusiastically participating in “green lifestyle”, “green consumption” and environmental protection movements.

c) Mobilizing resources from international financial institutions and bilateral and multilateral sponsors to improve financial capacity of credit institutions implementing green credit, including:

- Taking charge in negotiating, concluding and cooperating in implementation and acceleration of disbursement from supporting projects of international organizations via the banking system so as to introduce programs and policies for climate change such as solutions for urban environmental issues, support for low-carbon agriculture, development of secondary cities, biodiversity conservation, improvement of quality and safety of biogas and agricultural products.

- Focusing on disbursement from sponsorship programs for small and medium enterprises to enable credit institutions to grant loans for investment in development to theses enterprises according to the objectives of the national green growth strategy.

- Proactively cooperating with bilateral and multilateral sponsors; cooperating with relevant bodies in developing new programs and projects with international financial institutions interested in sponsoring environmental and climate change matters so as to search for new financial resources for credit institutions to carry out green financial - banking activities and formulate financial - banking services of service to green growth in enterprises.

2.3. Providing solutions for developing green banking - credit products and enabling enterprises to achieve green growth

a) Encouraging and focusing loan capital from banks on business and investment projects and plans to enable industries/fields to mitigate and adapt to climate change, including:

- Developing and deploying loan programs to facilitate growth of green economic sectors (such as green industry, green agriculture, green energy; use of eco-friendly equipment and technologies and pollution prevention and control).

- Devising solutions and incentive policies to enable credit institutions to sponsor green economic sectors.

b) Developing modern banking services that employ high technology and eco-friendly technologies to facilitate green growth, including:

- Producing new and modern payment forms and methods that employ high technology and eco-friendly technologies to ensure consistency and favorable conditions, and to facilitate non-cash payment, limit cash payment and reduce cash circulation in the market.

- Formulating plans on pilot implementation of modern payment forms and methods that are easy to use and suitable to the conditions of rural and remote areas in a number of localities, contributing to new rural development in a manner that incorporates the eco-friendly lifestyle.

2.4. Green banking - credit promotion

- Organizing specialized seminars/open conferences to promote and discuss green credit - banking policies.

- Proactively promote policies, programs and actions of the banking sector for the national green growth strategy via the website of the State Bank of Vietnam, mass media and other forms of communications.

- Establishing a platform for storage of green banking data, including an online database for green financial - banking news, events, documents and printed materials.

3. Funding

Funding sources for implementation of the Plan are specified in the Prime Minister’s Decision No. 403/QD-TTg dated March 20, 2014 approving the national green growth action plan for the 2014 - 2020 period.

4. Implementation

4.1. The Department of Credit for Economic Sectors shall take charge and cooperate with relevant units in organizing the performance of the tasks specified in this Plan.

4.2. Affiliates of the banking system shall internally implement the contents of this Plan in a proactive manner.

4.3. For the units assigned the tasks specified in the list of prioritized tasks in the Appendix enclosed therewith, they shall send periodical reports on progress, achievements, difficulties and solutions regarding the implementation of the Plan to the Department of Credit for Economic Sectors before December 31 of every year so that a compiled report can be promptly submitted to the Governor of the State Bank.

APPENDIX

LIST OF PRIORITIZED TASKS
(Enclosed with the Decision No. 1552/QD-NHNN dated August 06, 2015 by the Governor of the State Bank)