[Sector Committee Spotlight] Sustainable Finance Sector Committee

This week, EuroCham is excited to unveil a new interview-style format for our Sector Committee spotlight, which aims to provide in-depth insights from our experts.  We are pleased to kick off this series with a Sustainable Finance Sector Committee (SFSC) spotlight featuring Giandomenico Zappia, EuroCham Board Member and Chairman of  SFSC.

• Could you introduce your Sector Committee and your role? What are its primary objectives and how do you support European businesses in this sector?

The Sustainable Finance Sector Committee (SFSC) is the newest Sector Committee under EuroCham Vietnam, and I have the honour of serving as its first chairman. 

Our primary objective is to advocate for the development and growth of the sustainable finance sector in Vietnam. Vietnam’s sustainable finance market is nascent, with key enabling factors still in development. We are dedicated to accelerating this progress through policy research, government dialogue, capacity building via roundtables and conferences, and collaboration with ASEAN initiatives advancing the United Nations’ Sustainable Development Goals (SDGs). By leveraging European and regional expertise, we aim to drive Vietnam’s transition to a low-carbon, resilient, and sustainable economy. 

• Are there any specific policy issues or regulatory challenges that your Sector Committee is currently focused on addressing? Could you elaborate on these challenges and the actions the SC is taking to address them?

Our work spans five key verticals: green central banking, green commercial banking, capital markets, ESG standards and taxonomy, and sustainable corporate finance. For 2024, we will focus on three main advocacy and research topics: sustainable trade finance, ESG disclosure/taxonomy, and adaptation finance.

Our policy advocacy involves 3 key actions: (i) developing policy research and position papers on relevant topics, (ii) organising roundtable sessions to engage financial institutions, corporates, and the government and define key policy targets, and (iii) issuing official letters to relevant government offices (i.e. MOF, SBV, MONRE, MPI) with advocacy proposals.

Recently, we successfully hosted a Sustainable Trade Finance Roundtable, bringing together 40 prominent leaders from various sectors. Later this year, we will organise an event on ESG disclosure and green taxonomy, addressing the current lack of a common market language for ‘green’ or ‘sustainable’ definitions in Vietnam, so be on the lookout for our event. 

• Why should EuroCham members join this SC?

Joining our Sustainable Finance Sector Committee (SFSC) offers many key benefits: We focus on fostering policy advocacy and promoting regulations that create a more favourable business environment aligned with net zero goals. For this, members have access to our in-house research, which is a collaboration between SFSC and other reputable stakeholders, our monthly meetings for market updates and advocacy strategies, and join the community with top leaders in the sustainability field together with the Green Growth Sector Committee. This is crucial for companies looking to stay ahead in an increasingly sustainability-focused market.

We also provide invaluable networking and capacity-building opportunities. We have already hosted a successful roundtable and plan two more events in 2024 on ESG disclosure and adaptation finance. These events offer members direct access to key stakeholders and the latest insights into sustainable finance.

For this year, SFSC members are also given priority in becoming speakers at the upcoming Green Economy Forum and Exhibition 2024, happening on October 21 – 23. 

• Looking ahead, what are some emerging trends or developments in your sector that you believe will shape the business landscape in Vietnam?

Firstly, there is an increasing focus on ESG integration across investment activities, bank lending, and business practices. This shift is fundamental and will impact all sectors.

Secondly, we are seeing a growing demand for market transparency, particularly in ESG disclosure. There is mounting pressure to report on sustainability matters and climate-related risks, driving the adoption of global reporting frameworks.

The growth of sustainable finance products is another key trend. Green bonds and loans, along with social and sustainability-linked products, are gaining traction, though still at a limited scale compared to traditional markets.

Lastly, the advancement of policies and regulations, both within Vietnam and internationally, is shaping the landscape. As regulations evolve, particularly in the EU, we are seeing impacts on non-EU companies, including Vietnamese exporters.

Interested in joining Sustainable Finance Sector Committee?: Contact SC Coordinator Ngoc Anh anh.pham@eurochamvn.org