Written by: Basant El-Farmawy
Nam A Bank announced a strategic partnership with the Vietnam-Switzerland Economic Forum 2026, aimed at enhancing the financing of energy transition and sustainable development projects, coinciding with the announcement of the Free Trade Agreement between Vietnam and the European Free Trade Association. This forum provides an important platform for connecting governments, financial institutions, companies, and academics to promote bilateral cooperation and sustainable development.
The role of green finance in energy transition
During intensive working sessions at the forum, participants reviewed ways to develop the financial ecosystem and cross-border capital flows. Banking sector representatives emphasized that financing is no longer the biggest obstacle to energy transition, given that international climate funds are already flowing through local banks to support environmental projects in the renewable energy and clean technology sectors.
Challenges of investment project readiness
Vo Hoang Hai, Deputy General Director of Nam A Bank, pointed out that the biggest challenge lies in the readiness of projects to obtain funding, rather than the availability of funds themselves. He explained that World Bank estimates suggest Vietnam needs an additional $368 billion by 2040 to achieve its net-zero goal, nearly half of which must come from the private and international sectors through various financing channels.
Criteria for evaluating sustainable energy projects
The banking official identified five key factors that credit committees rely on to evaluate energy projects, including full legal compliance with land and licensing, payment mechanisms and cash flow from long-term power purchase agreements, technical performance based on certified equipment and contractors, investor capability and operational experience, as well as environmental and social risk management according to international standards.
This partnership comes to enhance the role of banks in integrating global green capital into the development path of the Vietnamese economy, confirming the ongoing commitment to implementing green banking models and achieving long-term sustainability goals through broad international cooperation.
