On Friday 9 December, during the official state visit by Vietnam prime minister Pham Minh, the Luxembourg Stock Exchange and the Vietnam Exchange signed a MoU on sustainable finance.
With a special focus on sustainable finance, the MoU has both parties commit to working together to promote and develop sustainable finance activities in their respective markets, organise educational activities and increase ESG information disclosure and standards.
“Sustainable finance needs to become a priority across international capital markets and as exchanges, we need to work together and share knowledge and experience to make this happen,” said Laetitia Hamon, head of sustainable finance at LuxSE.
Starting in 1993, Luxembourg and Vietnam’s development cooperation has shifted from one of economic development and poverty reduction to one which includes the financial sector, sustainable development and even professional training.
“Sustainable finance represents an opportunity to further strengthen economic and financial relations between Vietnam and Luxembourg. Thanks to its international financial centre and its expertise in sustainable investment and blended finance, Luxembourg can support Vietnam in its efforts to decarbonise its economy,” said Yuriko Backes, Luxembourg’s minister of finance.
The MoU with LuxSE is the first agreement of this kind entered into by the Vietnam Exchange and the second sustainable finance project Luxembourg and Vietnam have worked together on. Last year, in cooperation with the Global Green Growth Initiative, LuxSE’s sustainable finance experts provided trainings to around 50 representatives from selected public and private entities in Vietnam.
Interestingly, Luxembourg is currently the third largest European investor in Vietnam, with a total capital of $2.6 billion. Seeking the support and expertise of Luxembourg to establish an international finance hub in Ho Chi Minh City, the Vietnam government has also invited the Luxembourg government to increase investments in areas such as strategic infrastructure, digital transformation, renewable energy and pharmaceutical technology.
Together, both countries will promote a strategic green finance partnership and increase their efforts to meet the climate commitments made at COP26.
