HSBC provides first green trade facility in Vietnam’s seafood industry

HSBC Vietnam has entered an agreement to provide green trade financing to Vinh Hoan Corporation, marking the first ever green facility that the former has arranged for the latter and for the seafood sector.

To receive the short-term green trade loan to support its working capital for sustainable seafood production, Vinh Hoan and its subsidiaries have gone through HSBC’s stringent credit approval and management process for sustainable financing, the bank said in a statement on Thursday.

The green facility must also meet the high standards listed under the international Green Loan Principles, jointly issued by the London-based Loan Market Association and Asia Pacific Loan Market Association.

Given its vast advantages, the Vietnamese seafood sector accounts for nearly one quarter of agriculture GDP and is the world’s third largest exporter by turnover, and the fourth largest by output, said HSBC.

However, Vietnam’s strengths in seafood industry might diminish rapidly as Vietnam is one of the five countries most vulnerable to climate change.

“Dealing with climate change and protecting our economy from its impacts, including the seafood industry, is a priority for HSBC in Vietnaml” said Ahmed Yeganeh, head of wholesale banking, HSBC Vietnam.

Nguyen Ngo Vi Tam, CEO of Vinh Hoan, boasted that said her company’s pursuit of circular economy model in aquaculture production for years and Best Aquaculture Practices (BAP) are the catalysts that backed their access to HSBC’s green trade financing.

Vinh Hoan (HoSE: VHC) earned a consolidated net profit of VND808.32 billion ($31.92 million) on revenue of VND9,329 billion in the first three quarters of this year, down 4.8% and up 22% year-on-year, respectively.

VHC shares were up 1.1% at VND74,800 ($2.95) apiece at the break on Thursday.