HSBC Vietnam has announced its commitment to arranging up to US$12 billion of direct and indirect sustainable financing for Viet Nam and the corporate sector in the country by 2030.

The bank, in its letter to the Government, expressed its plan to financially and expertly back corporates’ promising and critical green and sustainable projects in Viet Nam, 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.

For Viet Nam to reach its net zero target by 2050 as committed at the 26th UN Climate Change Conference of the Parties (COP26) in the UK last year, it needs to significantly invest in renewable energy and green infrastructure.

“The Vietnamese Government has clear ambitions to tackle climate change through both green finance and technology transfer,” said Tim Evans, CEO of HSBC Vietnam. “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 Vietnamese Government to work together with a number of ministries and the State Bank of Vietnam to help arrange green funding for Viet Nam,” added the official.

HSBC Vietnam has a track record supporting critical green and sustainable projects in Viet Nam, which all contribute to decarbonising the country’s economy, including the first green loans for green certified buildings, financed Duy Tan Plastics Recycling Factory in 2020, a dual green financing includes a term loan to REE Solar Energy to finance their investment into rooftop solar energy solutions, and a trade finance facility to REEPRO for importing rooftop solar equipment in 2020. — VNS