Prudential Vietnam hosts 'Thematic Bonds and Transition Investment' workshop

“Back in March this year, the United Kingdom set out its vision for halving global emissions by 2030 and advancing the net-zero, climate resilience and nature positive economic transition globally. I think it is key that we recognise that this vision will not be achieved without partnerships. High impact, long-term partnership between countries – such as between the UK and Vietnam – and partnership between different fields – research, policy, and, of course, finance," said Tom Thornley, the British embassy Hanoi’s first secretary for Climate and Nature.

“In many ways, the UK and Vietnam are well aligned on climate. We have both set ambitious targets to reach net-zero by 2050, and the UK is eager to partner with like-minded countries globally. To do this, the UK has doubled its international climate finance to 11.6 billion pounds of funding between 2021 and 2026," he said.

Key stakeholders from the green bond market, as global non-profit, securities company, major local banks, rating agency and Prudential Vietnam’s asset management arm Eastspring took the opportunity of the workshop to share knowledge on the findings and best practices from markets in ASEAN, as well as information on the frictions, and barriers to accelerating the growth of the Vietnamese thematic/labelled bond market.

Chi Xiang Wong, senior ASEAN analyst from the CBI, an international organisation working to mobilise global capital for climate action, noted an increasing diversification of thematic issuance in the region.

He said that increasing interest has been observed from various stakeholders, including policymakers, regulators and the financial industry, with supportive efforts and initiatives on sustainable finance to accelerate the green growth of Vietnam.

"The CBI has seen various initiatives by policymakers – such as the guidance issued by the central bank on environmental risk management in credit extension activities, alongside a handbook commissioned by the securities regulator and prepared by CBI on how to issue thematic bonds in Vietnam," he said.

Ngo The Trieu, CEO of Eastspring Investments Vietnam, the asset management arm of Prudential, provided experience and case studies on sustainable ivestment journey.

He said that global ESG (environmental, social and governance)-focused funds attract new money inflows from investors and the growth prospect of ESG-focused funds was promising.

According to Trieu, the financing needs for climate actions in Vietnam will become significant soon, including great contributions from private financial sector resources.

"Prudential Vietnam has a key role to play to support the Vietnam government on the 2050 net-zero target. A critical aspect of supporting the transition towards a low-carbon economy is the investment of sustainable finance mechanisms in which green bonds are key," he said.

During his opening speech, CEO of Prudential Vietnam, Phuong Tien Minh said: “As a life insurer and the non-bank biggest asset owner in Vietnam, Prudential has a responsibility to our clients, the communities, and the environment in Vietnam. We consider the environment, society, and governance when making investment choices and uphold our fiduciary and stewardship obligations."

"Financing the transition to a net-zero future is a long-term journey that requires large-scale and cohesive inputs from the key Vietnamese financial sector players. The workshop is another step that Prudential would like to take to reinforce our interest in the sustainable development of the Vietnamese market,” Minh added.

The workshop participants had a productive session, where ideas and solutions of how to further develop the thematic/labelled bond market were generated.

The thematic/labelled bond market plays an important role in mobilising private capital to invest and fund the transition to net-zero in Vietnam.

Prudential Vietnam and partners are looking forward to working with the Vietnamese government to sustainably develop the thematic/labelled bond market to support the pathway to achieve the country's 2050 net-zero target.

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, together with Standard Chartered, HSBC and others.