As Vietnam needs $368 billion to reach its net zero goal by 2050, financial institutions play an extremely important role in mobilising capital to achieve this goal.
An increasing number of domestic and foreign financial institutions are adopting environmental, social, and governance (ESG) standards for their investment activities as well as channelling capital sources into sustainable business activities.
In addition, financial institutions also join forces to promote sustainable development in Vietnam. Accordingly, Standard Chartered Bank Vietnam, Prudential Vietnam, and Home Credit Vietnam have shaken hands towards the development of a sustainable future. This marks a pioneering partnership between three large corporations in the banking, insurance, and consumer finance industries.
Since its inception in Vietnam in 2008, Home Credit has pursued sustainable development. The strategy, coupled with the ESG policy, aims to cement business relationships with customers, communities, employees, and partners.
This lays the foundation for Home Credit to reap the rewards. The company serves more than 15 million customers and attracts 300,000 new visitors monthly, with more than 6,000 employees. It has formed a network of more than 11,000 retail partners while maintaining a bad debt ratio below the 3 per cent standard.
In addition to business development, Home Credit constantly invests in activities to improve corporate governance capabilities, protect the environment, and support the community towards sustainable development goals.
In Vietnam, Standard Chartered's history can be traced back to 1904, when the bank opened its first branch in Saigon. Standard Chartered has been acting as a strong partner on ESG and Sustainable Finance for its clients, with increasing focus on helping clients to decarbonise and transition. The Bank has expanded its sustainable finance asset books to over US$13 billion in 2022, representing a 30 per cent on-year growth.
With over 30 product variants for Sustainable Finance and a team of 100 specialists skilled in various areas of the sustainability practice, Standard Chartered is a reliable partner for clients at various stage of their journey in ESG confidently access the most innovative services and products in sustainable finance, transition finance, blended finance and on carbon markets.
In Vietnam, Prudential is committed to supporting the government to achieve the net-zero goal by 2050. Accordingly, Prudential has become one of the financial institutions acting under the Just Energy Transition Partnership.
On August 30, Prudential Group launched a new purpose statement, which reflects its mission to be the most trusted partner and protector for this generation and generations to come, by providing simple and accessible financial and health solutions.
Three companies have recently participated in the UK Festival themed "Sustainable Development" in Hanoi and Ho Chi Minh City in September. The UK Festival is taking place in Danang on October 16.
With a range of exciting activities, the festival offers a unique opportunity for viewers to explore the contributions and deep connections between the UK and Vietnam. Attendees can visit the festival's education pavilions, which showcase top academic programmes.
In addition, the two countries have also been developing cooperation in climate change response, sustainable development, and renewable energy.
Booths at the festival will show an array of British products hailing from popular retail, healthcare, and financial brands. Visitors can also learn more about the renewable energy projects and technologies that reflect the commitment of both nations to a greener, more sustainable future.
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