The MoU was signed in the presence of Prime Minister of Vietnam Pham Minh Chinh and Luxembourg Minister of Finance Yuriko Backes.

“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. In this context, I welcome the MoU on sustainable finance that the Luxembourg Stock Exchange has signed with Vietnam Exchange,” said Yuriko Backes, Luxembourg Minister of Finance.

Making sustainable finance global

The MoU places a specific focus on cooperation in the field of sustainable finance. The two institutions commit to working together to promote and develop sustainable finance activities in their respective markets, organise educational activities to strengthen sustainable finance knowledge among market participants and foster awareness among issuers and investors of ESG information disclosure and ESG disclosure standards.

“We are pleased to join forces with Vietnam Exchange and help advance the sustainable finance agenda in new markets. 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. Through LGX, we serve 260 issuers of sustainable debt instruments across different sectors and geographies. Our team of sustainable finance experts have built unique expertise in this field and are well placed to help VNX promote and develop sustainable finance initiatives in Vietnam,” commented Laetitia Hamon, Head of Sustainable Finance at LuxSE.

Fast development

Vietnam Exchange is a state-owned company based in Hanoi. It was established in August 2021, as a result of the merger of Ho Chi Minh Stock Exchange and Hanoi Stock Exchange. Vietnam Exchange and its subsidiaries operate three secondary markets for equity, fixed income and derivatives trading. The MoU with LuxSE is the first agreement of this kind entered into by Vietnam Exchange.

According to the IMF, from 1993 to 2014, Vietnam lifted 40 million people out of poverty. The country saw a strong economic growth in that period and reached lower middle-income status in 2010.

The development cooperation between Luxembourg and Vietnam started in 1993. Initially focused on economic development and poverty reduction, the focus is now on diversifying the fields of cooperation to also cover the financial sector, sustainable development and professional training. The MoU between LuxSE and VNX reflects this diversification into new areas of collaboration.

LuxSE has already been involved in a project related to sustainable finance in Vietnam. 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, and helped foster knowledge and build capacity with regards to the process of issuing sustainable debt instruments.