HSBC signs deal for first green trade facility in Vietnamese seafood industry

HSBC’s first green trade facility in the Vietnamese seafood industry

This marks the first green facility that HSBC Vietnam has arranged for Vinh Hoan, and also for the seafood sector, demonstrating the bank's support for the Vietnamese seafood producer on its sustainability journey.

As a tropical country with a coastline covering over 3,000 km and home to more than 1,300 seafood species, Vietnam has the advantages and potential for a prosperous seafood sector. The industry accounts for nearly one quarter of agricultural GDP, while Vietnam’s seafood industry is the world’s third largest exporter by turnover, and the fourth largest by output. However, Vietnam’s strengths in the seafood industry could rapidly diminish, as Vietnam is one of the top five countries likely to be adversely affected by climate change.

“Dealing with climate change and protecting our economy from its impacts, including the seafood industry, is a priority for HSBC in Vietnam," shared Ahmed Yeganeh, head of wholesale banking at HSBC Vietnam. “It is central to our strategy to support corporates in Vietnam who have a clear sustainability vision and plan like Vinh Hoan. As a strategic partner with a relationship spanning 24 years, HSBC is delighted and proud to be accompanying Vinh Hoan in its pursuit of a circular economy, transforming and inspiring others to join the green transition.”

To receive short-term green trade loans to support working capital for sustainable seafood production, Vinh Hoan and its subsidiaries have gone through HSBC’s stringent credit approval and management process for sustainable financing. The green facility must also meet the high standards listed under the international Green Loan Principles, jointly issued by Loan Market Association and Asia Pacific Loan Market Association.

Nguyen Ngo Vi Tam, CEO of Vinh Hoan, said, “Vinh Hoan’s pursuit of a circular economy in aquaculture production for years, which enables value chain optimisation, waste minimisation, and value creation from by-products and substandard products, as well as our international certifications from the Aquaculture Stewardship Council, and Best Aquaculture Practices, are the catalysts that backed our success to achieve HSBC’s green trade financing. I hope this first step will pave many more sustainable collaborations between both organisations.”

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