ACB spends 2,000 billion VND in Green/Social Credit for businesses

In early 2024, ACB officially launched a 2,000 billion VND Green/Social Credit package with many incentives for businesses with production and business plans that benefit the environment and society.

The Green/Social Credit package not only provides important additional capital from banks to businesses in the market but also a way for ACB to develop sustainably with customers and partners; the bank industry development strategy with the task of developing green credit - green banking set by the State Bank (SBV).

The ACB Green/Social Credit Package is built based on the categories and criteria of the Green/Sustainable Finance Framework, advised and guided by the International Finance Corporation (IFC) to ensure compliance with international regulations but still consistent and consistent with the bank's internal processes. The green/sustainable finance framework follows the Green Bond Principles and Sustainable Bond Principles established by the International Capital Markets Association (ICMA) and the Green/Sustainable Lending Principles established by the Loan Market Association (LMA).

ACB will prioritize credit financing for businesses with production and business plans in the green or social categories. Accordingly, businesses in the eligible green category include:

Renewable energy (solar power).
Efficient use of energy.
Green building.
Pollution control and prevention.
Clean transportation (including hybrid vehicles).
Sustainable water management and wastewater treatment.
Sustainable management of the living environment, natural resources and land use.

For the social category, qualified and women-owned businesses demonstrating progress and equal empowerment will receive priority access to capital from ACB.

Implementing the goal of green/social credit growth with a limit of VND 2,000 billion, ACB also supports businesses by offering preferential interest rates of only 6%/year for short-term and long-term loans. Loans also have the option to maintain incentives for up to 24 months and have early repayment fees waived/reduced. In addition, businesses can also optimize costs and increase business efficiency when using the financial solution "ACB 0 fee" for account services, cash flow management, international money transfer or granting credit by way of L/C Letter of Credit, Guarantee, Export Contract Financing,...

Mr. Ngo Tan Long, Deputy General Director of ACB - said: "The Green/Social Credit Program with outstanding incentives is a comprehensive financial solution proactively provided by ACB to businesses. We are ready to accompany businesses moving towards sustainable development. In the long term, we will promote green capital according to ACB's ESG implementation strategy."

With the newly implemented Green/Social Credit package, ACB will have standards for evaluating and monitoring capital use to ensure capital is used for the right purpose, bringing benefits to businesses when choosing according to the direction of sustainable development, and ACB itself will have a "net" to screen businesses that have good impacts on the environment and society to continue accompanying.

On the pioneering journey of implementing ESG, ACB has integrated sustainable development strategies into business activities. It is known that ACB is developing a green/sustainable bond framework and will announce it shortly. The goal is to increase green capital to finance green projects in Vietnam and create conditions for businesses to have more choices and opportunities to expand production and business sustainably.

In 2023, ACB was the pioneer bank in Vietnam to publish its report on sustainable development (ESG) and carry out environmental protection activities to inspire and spread a sense of responsibility for the living environment to shareholders, partners, customers and the community.