Vietnam, Belgium to boost green finance cooperation

He said it is one of the tasks in the roadmap for green bond market development for the 2017-2020 with a vision to 2030.

At the meeting - Photo: VNA

Briefing the host about Vietnam’s macro-economic situation, he said Vietnam ran a trade surplus of 9.8 billion USD in the first five months of this year while foreign direct investment hit 10.86 billion USD, or 92.7% of that recorded in the same period last year.

About the outcomes of his working session with several Belgian corporations and enterprises, Phoc vowed to expedite and support Belgian investment plans in Vietnam.

He suggested the Belgian Government consider adjusting the ODA-funded projects in line with Vietnam's laws, reduce fees, extend the loan terms, and increase the amount of loans to Vietnam.

About the global minimum tax, the Vietnamese minister said Vietnam supports and is actively studying the tax for early enforcement. Hence, he wished that the Belgian Ministry of Finance and tax authorities would share their experience with Vietnam in the process.

Peterghem, for his part, stressed that Belgium's foreign aid contributions are showing success, and the projects continue to be highly effective. Concerning ODA loans and grants to Vietnam, the Belgian Government is making policy changes to continue the support, he said, hoping that Vietnam’s proposals will soon be resolved.

Belgium is ready to share experience and offer assistance to Vietnam in green finance, sustainable development and the global minimum tax, he said.

The two ministers wished that in the near future, both sides would strive to strengthen the bilateral cooperation mechanism between the two ministries.

During an earlier working session with Chairman of the Financial Services and Markets Authority (FSMA) and Chair of the International Organisation of Securities Commissions (IOSCO) Board Jean-Paul Servais, Phoc proposed several initiatives to boost bilateral cooperation, with the participation of the State Securities Commission of Vietnam (SSC) as an official member of IOSCO.

Vietnam wishes to receive support from the FSMA and IOSCO Board Chair to further expand assistance for the development of the Vietnamese stock market through activities such as information sharing, training and capacity building for SSC officials, and improvement of expertise in new financial products, digital assets, and digital applications, he said, adding that the FSMA or relevant IOSCO committees may share experience and provide technical assistance for the Vietnamese Finance Ministry and SSC in establishing a modern and effective market supervision system to early detect violation in the securities market.

The Vietnamese official also expressed the desire for Vietnam to host the IOSCO Annual Conference in the near future.

Servais, in reply, said Belgium is willing to share experience with the SSC. He also backed Vietnam’s bid to host the IOSCO Annual Conference and encouraged the country to submit its application for hosting the event.

He said he is highly impressed by the Vietnamese Government's action plan to develop the stock market to support economic growth, protect investors, encourage intermediaries and supervise financial products. These are crucial pieces of information that Belgium sees as opportunities to strengthen cooperation with Vietnam in this field.

Visiting the Brussels Stock Exchange, member of the Euronext – the European stock exchange group in the afternoon of the same day, Phoc sought Euronext’s support for Vietnam’s bourses in expertise, and connecting Belgian and European investors for green and eco-friendly projects in need of capital in Vietnam.

He proposed that Euronext and either the Hanoi Stock Exchange (HNX) or the Ho Chi Minh City Stock Exchange (HOSE) of Vietnam establish a framework for bilateral cooperation and carry out joint activities to operate the securities market. This includes connecting financial service organisations and investors from both regions.

During the visit, Phoc also held a working session with Francois Mitchell, CEO of the John Cockerill Group, which is investing in energy technology in Vietnam. The group aims to make its operation in Vietnam a core serving the Southeast Asian market and potentially the Northeast Asian market.

He asserted the host that Vietnam could fully meet and support the group's needs, including finding suitable partners to build factories and seek favourable locations in Vietnam for its future exports.