Nam A Bank and the Global Climate Partnership Fund (GCPF) signed a cooperation agreement on 19/11 to research and develop a climate change adaptation finance framework in Vietnam. Under the agreement, the two parties will focus on the agriculture sector, which is heavily impacted by climate change. From 2026, Nam A Bank and GCPF will collaborate to build and test adaptation finance products. These products aim to help farmers and agricultural businesses increase resilience to impacts such as drought and saltwater intrusion, while supporting investment in irrigation technology, water management, and innovative adaptation solutions.

Mr. Tran Khai Hoan, board member and acting general director of Nam A Bank, and Ms. Carolin Gassner, chairperson of GCPF, signed the memorandum of understanding. *Photo: Nam A Bank*

A representative from Nam A Bank stated that agriculture is a key sector in the bank's sustainable development strategy. The cooperation aims to develop financial solutions suited to Vietnam's climate conditions and meet the urgent adaptation needs of the agricultural sector. A GCPF representative added, "Nam A Bank is a long-standing partner of GCPF in Vietnam, with an outstanding track record in climate finance. This is an important foundation for both parties to continue exchanging expertise and implementing many future projects."

This cooperation takes place as Vietnam promotes green finance, aiming for net zero emissions by 2050. This encourages commercial banks to expand green credit and develop products supporting climate change adaptation. Additionally, the establishment of the Ho Chi Minh City International Financial Center is a significant milestone, expected to attract international capital flows, especially green capital.

Globally, adaptation finance faces a large capital gap. Developing countries need approximately 387 billion USD annually for climate adaptation solutions, nearly 20 times the available capital. Most capital flows still prioritize emission reduction, making it difficult for many adaptation projects to access long-term funding.

A Nam A Bank representative further explained that adaptation finance is an urgent need, especially with Vietnam's commitment to the Net Zero target by 2050. This cooperation strengthens Nam A Bank's "Digital" and "Green" sustainable development strategy, while facilitating increased professional exchange and deeper cooperation with international partners.

The two parties are expected to collaborate on researching the climate change adaptation finance framework from 2026. *Photo: Nam A Bank*

Previously, in September, the bank organized the international conference "Unlocking International Green Capital Markets - Promoting Sustainable Development and Financial Inclusion in Vietnam" to foster climate finance cooperation. To date, the bank has mobilized nearly 200 million USD in international capital for sustainable development projects; GCPF alone has disbursed over 40 million USD. The bank also implemented an environmental and social risk management system (ESMS) according to IFC standards and is one of the first entities to announce completion of Basel III standards in Vietnam.

GCPF is managed by responsAbility Investments AG, an impact asset manager investing in climate finance, financial inclusion, and sustainable food, contributing to United Nations development goals. Nam A Bank and GCPF have cooperated since 2018 to deploy capital for green credit programs. After a long period of cooperation, GCPF considers the bank one of its most successful implementing partners in Vietnam.

Minh Ngoc