On 25 May in Hanoi, the Vietnam Bank for Agriculture and Rural Development (Agribank) and the French Development Agency (AFD) officially signed a Climate Facility Agreement, marking a significant milestone in international financial cooperation for green growth and sustainable development in Vietnam.

The signing ceremony was attended by H.E. Olivier Brochet, Ambassador Extraordinary and Plenipotentiary of France to Vietnam; Mr. Dao Xuan Tuan, Director General of the Foreign Exchange Management Department under the State Bank of Vietnam; and Mr. Julien Seillan, Director of AFD Vietnam. Representing Agribank were Mr. To Huy Vu, Secretary of the Party Committee and Chairman of the Members’ Council, together with members of the Board of Members, the Executive Board, and leaders of relevant divisions.

In his remarks at the signing ceremony, Ambassador Olivier Brochet emphasized that this is the first climate facility extended by AFD to Agribank without a Government guarantee. Beyond its financial significance, the partnership reflects a new phase of cooperation between France and Vietnam in sustainable finance and green transition. The Ambassador expressed confidence that the agreement would pave the way for broader and more ambitious cooperation between the two countries in green finance, climate action, and energy transition.

H.E. Olivier Brochet, Ambassador Extraordinary and Plenipotentiary of France to Vietnam, delivers remarks at the signing ceremony

Addressing the ceremony, Mr. To Huy Vu highlighted that green growth and sustainable development have become central pillars of Vietnam’s development strategy in the new era. In this context, green credit and sustainable finance play a pivotal role in delivering on the country’s climate commitments.

As the leading State-owned commercial bank serving agriculture, farmers, and rural development, Agribank recognizes its responsibility as a bridge connecting international development finance from partners such as AFD with local communities, businesses, and green production models. Agribank is committed to ensuring the transparent, efficient, and purpose-driven use of the facility, prioritizing renewable energy projects, smart and clean agriculture, low-emission production models, and climate adaptation initiatives.

Mr. To Huy Vu, Secretary of the Party Committee and Chairman of the Members’ Council of Agribank, addresses the signing ceremony

“This signing ceremony is not merely a financing agreement, but a convergence of shared aspirations for a greener world and a Vietnamese agricultural sector that is sustainable, circular, and inclusive,” Mr. To Huy Vu stated. “Agribank is committed to maximizing the effectiveness of this partnership and transforming it into a model for international cooperation in climate finance in Vietnam.”

Representing AFD, Mr. Julien Seillan reaffirmed AFD’s commitment to accompanying major Vietnamese financial institutions in their transition toward a more sustainable, resilient, and climate-aligned financial system.

Mr. Julien Seillan, Director of AFD Vietnam, reaffirms AFD’s commitment to supporting major Vietnamese financial institutions in their transition toward a more sustainable financial system

Following the official remarks, Mr. Julien Seillan, Director of AFD Vietnam, and Mr. Doan Ngoc Luu, Deputy Chief Executive Officer of Agribank, signed the Climate Facility Agreement in the presence of government representatives, partners, and stakeholders.

Mr. Julien Seillan, Director of AFD Vietnam, and Mr. Doan Ngoc Luu, Deputy Chief Executive Officer of Agribank, perform the signing ceremony for the Climate Facility Agreement

The partnership between Agribank and AFD is expected to deliver meaningful benefits for both Vietnam’s economy and Agribank’s long-term development strategy.

The climate facility will help diversify financial resources for greenhouse gas emission reduction projects and strengthen resilience against climate change, particularly in strategic sectors such as agriculture and rural development.

A panoramic view of the signing ceremony

Representatives of Agribank and AFD following the signing ceremony

For Agribank, the agreement represents a major milestone as the bank successfully secures medium- and long-term foreign financing directly from an international partner without a Government guarantee for the first time. This achievement not only underscores Agribank’s financial strength and credibility in international markets, but also enhances the bank’s ability to proactively optimize its funding structure and reinforce its leading role in green finance in Vietnam.

Through this partnership with AFD, Agribank has reaffirmed its commitment to supporting the Government, businesses, and communities in Vietnam’s green transition journey, spearheading the development of a modern, sustainable, and climate-resilient agricultural sector.

AFD – the French Development Agency – is France’s public development finance institution, providing financing, lending, and technical assistance for sustainable development programs and projects across numerous countries. In the environmental sector, AFD is recognized as one of the leading international development partners actively promoting green finance, supporting economies in their transition toward low-carbon development, strengthening climate resilience, and advancing sustainable development goals.

In Vietnam, AFD has partnered in a wide range of initiatives related to green growth, sustainable infrastructure, climate adaptation, low-emission transport, agriculture, and water resource management. Through its cooperation with Agribank, AFD serves as a strategic partner in providing medium- and long-term financing to support climate mitigation and/or adaptation efforts, thereby enhancing Vietnam’s ability to mobilize international resources for green projects, particularly in agriculture, rural development, low-emission production, and climate adaptation. The accompanying technical assistance program from AFD will serve as a key catalyst in helping Agribank strengthen its environmental and social risk management framework and further enhance its ESG strategy. This partnership lays a strong foundation for Agribank to reinforce its position as a leading green financial institution, spearheading the transformation of Vietnam’s agricultural sector toward a more sustainable, circular, and inclusive future.

Lê Thị Thu Hương - ĐCTC