HSBC Vietnam commits $12 billion to the green development of Vietnam

January 25, 2022 | 17:23
In support of the government’s aspiring climate goals and COP26 commitments to become a net zero economy by 2050, HSBC Vietnam has announced to arrange up to $12 billion of direct and indirect financing for Vietnam and the corporate sector by 2030.
HSBC Vietnam commits $12 billion to the green development of Vietnam

The bank, in its letter to the government, has expressed its plan to financially back corporates’ promising and critical green and sustainable projects in Vietnam, which play a vital role in decarbonising 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 $750 billion to $1 trillion in finance and investment by 2030.

According to HSBC, Ho Chi Minh City is among many cities in Asia (besides Mumbai, Shanghai, Bangkok, and Jakarta) that are increasingly threatened by rising sea levels. The 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 per cent 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 gears in 2021. It is a key goal for HSBC Vietnam to help build a thriving and resilient future for Vietnam and its business community.

Tim Evans, CEO of HSBC Vietnam said, “The 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.”

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 government to work together with several ministries and the State Bank of Vietnam to help arrange green funding for Vietnam," added Evans. “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 we can all make a material difference to Vietnam’s ambitions to combat climate change,” he said.

Sustainable debt issuance reached $1.2 trillion globally in the first nine months of 2021. Asia-Pacific accounts for 19 per cent of this, and HSBC research shows there is more demand from issuers to come.

By HSBC

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