On May 25 in Hanoi, the Vietnam Bank for Agriculture and Rural Development (Agribank) and the French Development Agency (AFD) officially signed the Climate Finance Credit Facility Agreement, marking a new step forward in international financial cooperation to promote green growth and sustainable development in Viet Nam.

The event was attended by Mr. Olivier Brochet, Ambassador Extraordinary and Plenipotentiary of the French Republic to Viet Nam; Mr. Dao Xuan Tuan, Director General of the Foreign Exchange Management Department of the State Bank of Viet Nam; and Mr. Julien Seillan, AFD Country Director in Viet Nam. On Agribank’s side, the event was attended by Mr. To Huy Vu, Secretary of the Party Committee and Chairman of Agribank’s Board of Directors; members of the Board of Directors and the Board of Management; and senior representatives of relevant units.

Speaking at the signing ceremony, Mr. Olivier Brochet, Ambassador Extraordinary and Plenipotentiary of the French Republic to Viet Nam, emphasized that this is the first climate finance credit facility without a Government guarantee that AFD has extended to Agribank. Beyond its financial significance, this partnership marks a new development in cooperation between France and Viet Nam in sustainable finance and green transition. The Ambassador expressed his confidence that the signing ceremony would pave the way for more ambitious cooperation between the two countries in green finance, climate and energy transition.

Mr. Olivier Brochet, Ambassador Extraordinary and Plenipotentiary of the French Republic to Viet Nam, delivers remarks at the signing ceremony

On Agribank’s side, Mr. To Huy Vu, Secretary of the Party Committee and Chairman of Agribank’s Board of Directors, emphasized that green growth and sustainable development have become a consistent orientation for Viet Nam in its new stage of development. In this context, green credit and green finance are identified as important instruments to realize the country’s climate commitments.

According to the Chairman of Agribank’s Board of Directors, as a key State-owned commercial bank serving agriculture, farmers and rural areas, Agribank is fully aware of its responsibility as a “bridge” in channeling international capital from development partners such as AFD to people, enterprises and green production models. Agribank is committed to managing and using the funding effectively, transparently and for the intended purposes, with priority given to renewable energy projects, smart agriculture, clean agriculture, low-emission production models and climate change adaptation.

Mr. To Huy Vu, Secretary of the Party Committee and Chairman of Agribank’s Board of Directors, delivers remarks at the signing ceremony

“Today’s signing ceremony is not only an agreement on funding, but also a convergence of major visions for a greener world and for Vietnamese agriculture to develop in a sustainable, circular and inclusive direction. Agribank is committed to making its utmost efforts so that this cooperation will deliver practical results and become a model for international cooperation in climate finance in Viet Nam,” Mr. To Huy Vu emphasized.

Representing AFD, Mr. Julien Seillan, AFD Country Director in Viet Nam, stated that through this climate finance credit facility, AFD reaffirms its desire to accompany major financial institutions in Viet Nam in their transition towards a more sustainable and more resilient financial system, aligned with Viet Nam’s climate goals.

Mr. Julien Seillan, AFD Country Director in Viet Nam, affirms AFD’s desire to accompany major financial institutions in Viet Nam in their transition towards a more sustainable financial system

Immediately after the remarks, representatives of the two sides, Mr. Julien Seillan, AFD Country Director in Viet Nam, and Mr. Doan Ngoc Luu, Deputy General Director of Agribank, signed the Climate Finance Credit Facility Agreement in the presence of leaders of relevant agencies, partners and representatives of relevant units.

Mr. Julien Seillan, AFD Country Director in Viet Nam, and Mr. Doan Ngoc Luu, Deputy General Director of Agribank, sign the Climate Finance Credit Facility Agreement

The cooperation between Agribank and AFD is considered significant for both the economy and the Bank’s development strategy.

For the economy, the climate finance credit facility contributes to diversifying financial resources for projects aimed at reducing greenhouse gas emissions and enhancing resilience to the impacts of climate change, particularly in key sectors such as agriculture and rural development.

Overview of the signing ceremony

Delegates pose for a commemorative photo

For Agribank, this is an important milestone as the Bank has, for the first time, successfully accessed medium- and long-term direct foreign funding without a Government guarantee. This step not only reflects Agribank’s financial capacity and reputation in the international market, but also enhances the Bank’s flexibility in managing its funding structure, gradually affirming its leading role in green finance in Viet Nam.

Through cooperation with AFD, Agribank continues to translate its sustainable development orientation into concrete action, expand its capacity to mobilize international resources for green growth, and affirm its commitment to accompanying the Government, the business community and people on the journey towards green transition, climate change adaptation and the development of modern and sustainable Vietnamese agriculture.

Kylie Nguyen