Promoting Green Finance and Digital Transformation in the Finance Sector of Viet Nam and Germany

Deutsche Bundesbank Executive Board Member Burkhard Balz and SBV Deputy Governor Nguyen Kim Anh signing the MoU on 13th April 2023.

The Viet Nam-Germany partnership in building a sustainable finance sector in Viet Nam has been taken to a next level, with the signing of an MoU on cooperation between the Deutsche Bundesbank and the State Bank of Viet Nam (SBV) on 13th of April 2023 in Frankfurt am Main, Germany. This is one of key outcomes of a recent delegation from the SBV’s visit to Germany, headed by Deputy Governor Nguyen Kim Anh, as part of the activities of the GIZ Macroeconomic Reforms/ Green Growth Programme commissioned by BMZ.

“The MoU marks an important milestone by opening up a new phase of fruitful cooperation between SBV and the Deutsche Bundesbank”, SBV Deputy Governor Nguyen Kim Anh said at the signing ceremony. By entering this new agreement, the two central banks are committed to an extended scope of collaboration in green finance and digital transformation in finance sector, alongside of existing cooperation in traditional central bank operations. Both Deutsche Bundesbank and SBV recognised GIZ’s role in the process of MoU preparation and expected GIZ’s continued support by pulling together Bundesbank’s and other German experiences and expertise in response to SBV’s needs. Ultimately, this will help both central banks in contributing to greening global financial system and fulfilling Viet Nam and Germany’s Net-Zero commitments.

The SBV delegation learned about the actual role and priorities of the Bundesbank in green finance, sustainable development and Net-Zero commitment. They also gained insights into the activities within the Network for Greening the Financial System. The counterparts exchanged about the existing policies and future outlook in promoting green banking and green credit in Viet Nam and Germany.

On a visit to the Deutsche Bundesbank University of Applied Sciences in Hachenburg, the SBV delegates learned about how sustainable finance and digitalization are incorporated into the education of future staff of the German Central Bank. “The dual study model and curriculum of this university can be adopted by SBV and Banking Academy of Viet Nam to meet the need for sustainable finance and digitalization education for banking sector in our country,” said Mr. Kim Anh.

The study programme of SBV delegation at Deutsche Bundesbank was fruitful and met the expectations from both counterparts, as acclaimed by Mr. Balz in Vietnamese “Đi một ngày đàng học một sàng khôn” (travel broadens the mind).