Standard Chartered Vietnam has provided a $25 million Transition Trade Finance facility to support Tung Ho Steel Vietnam in their environmentally friendly, scrap-based steel production, marking a significant step towards sustainability in the steel industry.
Standard Chartered Vietnam has just announced the approval of a Transition Trade Finance facility worth $25 million to provide support for Tung Ho Steel Vietnam Corporation Limited.
This ground-breaking collaboration marks a first for both Standard Chartered in Asia and Tung Ho Steel, as the working capital will facilitate the company's continued procurement of scrap steel for their environmentally friendly Electric Arc Furnace (EAF) production process.
Tung Ho Steel Vietnam, a subsidiary of Tung Ho Steel Enterprise Corporation, the top EAF-based steel producer in Taiwan, has been at the forefront of sustainable steel production since its establishment in 2016. Tung Ho Steel utilises scrap metal as raw material, with more than 95 of their production relying on recycled steel.
By employing electric furnaces over traditional blast ones, Tung Ho Steel has significantly reduced its energy consumption and estimates it has seen a remarkable 75 per cent reduction in CO2 emissions. EAFs emit only a quarter of the CO2 generated by conventual blast furnaces.
Nguyen Thuy Hanh, deputy general director and head of Corporate, Commercial, and Institutional Banking at Standard Chartered, said, “The credit extension for Tung Ho Steel is part of our commitment to clients that we will help raise sustainable financing and support their climate ambitions. Standard Chartered strives to be a key contributor to the sustainable development of Vietnam and continues to work closely with our clients and stakeholders to provide finance to where it matters most.”
Huang Bing Hua, Tung Ho Steel’s president, said, “We aspire to become a leader in EAF steel refining. We have been conducting greenhouse gas (GHG) emission inventories, participating in voluntary carbon reduction programmes, and proactively disclosing GHG management strategies since 2003."
"We are proud that this Transition Trade Finance facility is one of the very first in the region, underscoring our strong commitment to sustainability in our manufacturing process. We look forward to working closely with Standard Chartered as we seek to accelerate sustainability practices in our organisation and industry,” Hua added.
| ||The significance of Vietnam for US businesses and why they should take notice |
Vietnam has gone from being a frontier economy in ASEAN to a flourishing, cost-effective, and industrial nation. Firms and investors that are looking for new markets to grow, source, or manufacture their products – especially in Asia – should consider Vietnam’s long-term potential and stay updated on its opportunities.
| ||Standard Chartered Vietnam partners with MISA to launch digital financing for SMEs |
Standard Chartered Vietnam announced the launch of its strategic partnership with MISA JSC on April 14, witnessed by the management teams from both companies, clients, and journalists. This first-in-market partnership offers unsecured invoice financing facilities to small- and medium-sized enterprises (SMEs) in Vietnam with a highly competitive interest rate and straight-forward process.
By Nhat Minh