Hanoi, Vietnam, March 17, 2009 —
IFC, a member of the World Bank Group, is helping Vietnamese banks manage
environmental and social risks by facilitating the sharing of knowledge
and experience among Chinese and Vietnamese banks and government representatives
regarding sustainable banking.
At a workshop jointly organized in Hanoi by IFC, the State Bank of Vietnam,
and the Viet Nam Banks Association, representatives of the Chinese government
and banks met with Vietnamese bankers to discuss China’s experience in
sustainable financing and innovative business models for energy efficiency.
“This workshop is a timely effort to raise local banks’ awareness and
understanding of risk management, including environmental and social risks,”
said Cat Quang Duong, Deputy Director of the Credit Department of State
Bank of Vietnam. “Lessons shared by colleagues from IFC and China will
help us improve our policy and practices.”
The workshop also introduced Vietnamese banks to IFC’s Performance Standards,
which have become globally recognized best practice for environmental and
social risk management. In addition, Vietnamese banks learned about innovative
business models for energy efficiency, such as the China Utility-based
Energy Efficiency Finance Program first introduced by Industrial Bank of
China. Participants also discussed the Equator Principles, a set of voluntary
guidelines for ensuring sustainability in project finance, based on IFC’s
Performance Standards.
“Investing in businesses that are financially, socially, and environmentally
sustainable over the long run is strategically smart and will guarantee
the sustainability of financial institutions’ own business model,” said
Greg Radford, IFC Director for Environment and Social Development. “The
achievements of the Chinese make a strong business case for sustainable
banking in emerging markets and show that environmental and social responsibility
goes hand in hand with commercial success, even in a time of financial
crisis.”
Duong Thu Huong, General Secretary of the Viet Nam Banks Association, said,
“The current challenge for Vietnam is maintaining sustainable growth and
effectively addressing environmental issues such as industrial pollution
and waste treatment. The financial sector can play an important role if
it adopts sustainable approaches in risk management and lending policy,
and proactively finances projects in new areas offering good economic,
environmental and social returns.”
IFC advises governments, private companies, and industry sectors on how
to grow businesses sustainably and create a healthy investment climate.
In Vietnam, IFC advisory services are delivered in partnership with Australia,
Canada, Finland, Ireland, Japan, New Zealand, the Netherlands, Norway,
Sweden, and Switzerland. For more information, visit www.ifc.org/mekong.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled $16.2
billion in fiscal 2008, a 34 percent increase over the previous year. For
more information, visit www.ifc.org.
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