Page 136 - Ebook HTKH 2024

rely on modern institutions and governance, advanced science and technology, high-
quality human resources, in line with the international context and domestic conditions.

In addition, to contribute to the implementation of the National Strategy on Green
Growth, on June 7, 2022, the Prime Minister approved the Project on Circular Economy
Development in Vietnam in Decision No. 687/QD-TTg. Accordingly, it is affirmed that
“Proactively developing a circular economy is inevitable” to contribute to “promoting
the realization of the National Strategy on Green Growth for the period 2021 - 2030,
with a vision to 2050”. Promoting the application of the circular economy model will
promote the greening of economic sectors. The goal set for 2025 is that circular economy
projects will initially come into implementation and promote economic, social,

technological and environmental efficiency; contribute to the recovery of renewable
resources, reduce energy consumption, increase the proportion of renewable energy in
total primary energy supply, forest coverage rate, increase the rate of waste recycling,
increase the localization rate of agricultural, forestry, fishery and industrial export
products. By 2030, circular economy projects will become a major driving force in
reducing primary energy consumption, have the capacity to self-sufficient in most or all

of the energy demand based on renewable energy, and increase the rate of forest
coverage rate. In addition, the circular economy model also supports the development
of a green lifestyle, encourages waste sorting and promotes sustainable consumption.
The Law on Environmental Protection, promulgated by the National Assembly on
November 17, 2020, took effect from January 1, 2022. The State Bank of Vietnam issued
Circular 17/2022/TT-NHNN dated December 23, 2022 on environmental risk
management in credit granting activities, effective from June 1, 2023. This is a

mandatory regulation for credit institutions to manage environmental risks in credit
granting activities for groups of investment projects with the risk of adverse impacts on
the environment, as specifically stipulated in the Law on Environmental Protection and
Decree No. 08/2022/ND-CP dated January 10, 2022 of the Government. The
implementation of the Circular demonstrates a strong message about the responsibility
of the banking sector for environmental protection, enhancing the risk management

capacity of credit institutions in the face of environmental risks and climate change,
bringing Vietnamese banking activities closer to international standards and practices
on ESG practices and sustainable finance, while improving credit quality, safety and
efficiency of banking operations.
3. Achievements in promoting green credit growth
3.1. Achievements
It can be said that the long-term strategic unity for green growth in Vietnam is the
foundation for building and developing specific policies for each industry/sector. For
the banking industry, activities are built on the basis of implementing assigned tasks in
the Strategy and Plan for implementing the green growth strategy; complying with the

provisions of the Law on the State Bank and the Law on Credit Institutions, but still

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