HSBC Vietnam to arrange US$12 billion to green Vietnam
VOV.VN - In support of the Vietnam Government’s aspiring climate goals and COP26 commitment to become a net zero economy by 2050, HSBC Vietnam has announced its commitment to arranging US$12 billion of direct and indirect sustainable financing for Vietnam and corporate sector in Vietnam by 2030.
The bank, in its letter to the Government of Vietnam, has expressed its plan to financially and expertly back corporates’ promising and critical green and sustainable projects in Vietnam, which play a vital role in decarbonizing the country’s economy.
This forms part of HSBC’s broader net zero pledge to help customers transition their business models and decarbonise by prioritising US$750 billion to US$1 trillion in finance and investment by 2030. According to HSBC’s report “Tackling the next crisis”, Ho Chi Minh City is among many cities in Asia (besides Mumbai, Shanghai, Bangkok and Jakarta) that are being increasingly threatened by rising sea levels.
World Bank also warned that Vietnam is one of the top five countries likely to be affected by climate change, adding the forecast that climate change will reduce the country’s national income by up to 3.5% by 2050.
For Vietnam to reach its net zero target by 2050 it needs to significantly invest in renewable energy and green infrastructure. HSBC has seen a huge surge in its activity as sustainability in Asia shifted gear in 2021. It is a key goal for HSBC Vietnam to help to build a thriving and resilient future for Vietnam and its business community.
“The Vietnamese Government has clear ambitions to tackle climate change through both green finance and technology transfer. These commitments give the private sector more confidence to borrow and invest”, Tim Evans, CEO of HSBC Vietnam.
HSBC Vietnam will mobilise funds from local and international financial markets to provide a wide range of sustainable solutions in green finance, debt finance, supply chain, trade, green deposits and investment products. HSBC incorporates prudent risk assessment and international green finance standards in providing these solutions.
“We have received positive feedback together with explicit guidance from the Vietnamese Government to work together with a number of ministries and the State Bank of Vietnam to help arrange green funding for Vietnam” Tim Evans added.
“With the Government’s dedicated support and direction, the readiness of corporate and individual clients in Vietnam and HSBC’s significant international knowledge and experience in sustainable finance, I am very confident that together we can all make a material difference to Vietnam’s ambitions to combat climate change,” he noted.
HSBC Vietnam has a track record supporting critical green and sustainable projects in Vietnam, which all contribute to decarbonizing the country’s economy.
These projects include the first green loans for green certified buildings, funding for Duy Tan Plastics Recycling Factory in 2020, a dual green financing that consists of a term loan to REE Solar Energy to finance their investment into rooftop solar energy solutions, and a trade finance facility to REEPRO for importing rooftop solar equipment in 2020.
