Boosting access to greenbacks for green growth

10:38 | 25/04/2019 Economy

(VEN) - The Ministry of Industry and Trade’s Vietnam Trade Promotion Agency (VIETRADE) and the International Trade Center (ITC), a joint agency of the World Trade Organization and the United Nations, have teamed up to launch a project aimed at bolstering trade for sustainable development (T4SD) in Vietnam. One of the project’s highlights is to create financial resources to help businesses renovate technology and production in accordance with green development.

boosting access to greenbacks for green growth

Technology investment helps businesses develop on a sustainable basis

According to Dr. Nguyen Bao Thoa, Vietnam Hub-lead for project Trade for Sustainable Development (T4SD), the domestic business community is now interested in sustainable development based on meeting green standards. Almost all enterprises participating in the project believe that green or sustainable growth is very practical, while 79 percent seek training in marketing and positioning sustainable products, especially exports, in foreign markets, Thoa said.

However, businesses find it difficult to access investment to satisfy their large capital demand. They may need from several million to tens of millions of US dollars to change all their technology and industrial processes. Therefore, assisting enterprises to access finance is important to help them reach sustainable development. Such targeted capital not only helps them change production technology but also improve green production and green growth capability and environmental awareness of their labor force.

Thoa said the project offers training in green growth, and while it does not directly provide capital, it helps businesses access capital from financial institutions to improve and apply green technology. For example, the Ministry of Science and Technology currently has 31 programs for which enterprises meeting certain standards can apply. The State Bank of Vietnam (SBV) has also adopted a green financial strategy that will enable capital access once green enterprise criteria are fixed. Some 30 commercial banks are willing to provide green finance, Thoa said.

Using green, sustainable or organic products has become an inevitable trend worldwide over the past decade. VIETRADE head Vu Ba Phu said the Ministry of Industry and Trade and ITC will commercialize products that tend to be sustainable or are based on sustainable development criteria to help the domestic business community catch up with this trend through the project.

The project will provide technical assistance and sustainable solutions for businesses through ITC tools; directly assist enterprises in meeting green production and trade standards, especially in export activities; and assist enterprises to access green finance to implement sustainable activities and position products in foreign markets.

The project Trade for Sustainable Development (T4SD) is being implemented in 2019 and 2020. The ITC will consider

extending the project based on its achievements.

Viet Nga & Hoang Lan