$1.3 bln HSBC fund to bolster sustainable growth in Vietnam

HSBC has raised around $1.3 billion to support Vietnamese businesses in making long-term investments and transforming their business models in a green and sustainable manner.

Tim Evans, CEO of HSBC Vietnam, made the statement at a recent meeting with Deputy Governor of the State Bank Pham Thanh Ha.

HSBC Vietnam on January 25 announced its commitment to arranging up to $12 billion in sustainable financing for Vietnam and the local corporate sector by 2030. This aims to support the country’s aspiring climate goals and COP26 commitment to become a net-zero economy by 2050.

The bank has to date implemented more than 10% of the credit package, the CEO stated.

Evans also mentioned HSBC's aid to major agencies, like assisting the Ministry of Finance with bond issuance for a green economy, and backing the Ministry of Natural Resources and Environment with its green portfolio and emissions neutralization.

The deputy governor affirmed HSBC’s credit package as a practical resource to help Vietnam advance toward a net-zero target, in line with the banking sector's strategy.

"The State Bank is actively working with international financial institutions to mobilize financial resources toward a green economy and sustainable growth," he said, adding that the central bank aims to expand green credit to more than the current 5% of total national credit.

The bank agreed to assist international credit institutions and foreign-invested banks in Vietnam in receiving foreign aid and concessional loans to finance green projects, in line with government laws.

HSBC has expressed its willingness to share experiences and practices with the central bank, raising awareness of green growth/credit, as well as supporting Vietnam's participation in international banking networks.

The creditor in early April revised down Vietnam’s GDP forecast from 6.5% to 6.2% due to the impacts of the global fuel shortage. In May, it predicted Vietnam’s inflation may be well under control at 3.7% this year, below the central bank’s target of 4%.