HSBC provides sustainability-linked trade facilities to Vietnam's leading modern grocery chain Bach Hoa Xanh

HSBC Vietnam has provided short-term sustainability-linked trade facilities to Bach Hoa Xanh Trading JSC, one of Vietnam’s leading modern grocery chains owned by Mobile World Investment Corporation (HoSE: MWG).

The facilities will support Bach Hoa Xanh’s working capital requirements, network expansion, and delivery of its sustainability roadmap, the bank said in a release on Monday.

"This is the second ESG-linked facility structured by HSBC for MWG Group, reflecting continued momentum in sustainable trade finance in Vietnam," HSBC Vietnam stated.

Bach Hoa Xanh operates a nationwide network of more than 3,000 stores, providing essential products, differentiated offerings, and convenient shopping experiences. The company has also implemented initiatives to reduce its environmental footprint, including efforts to optimize energy use.

Tim Evans, CEO and head of banking, HSBC Vietnam, said: "This transaction shows how sustainability-linked structures can be applied in a practical way to trade facilities that support day-to-day business activity.

"HSBC has worked with MWG for nearly two decades, and this facility supports our strategy to provide scalable sustainability-linked balance sheet solutions for leading local corporates. We’re pleased to support Bach Hoa Xanh as its primary international banking partner as it progresses its growth plans and sustainability ambitions.”

Vu Dang Linh, CEO of Mobile World Group, said as Bach Hoa Xanh continues to expand its store network and strengthen operations, the group is equally focused on delivering measurable progress against its sustainability roadmap.

"HSBC Vietnam’s sustainability-linked trade facilities support our working capital needs while linking financing terms with our performance against agreed ESG metrics. We value HSBC Vietnam’s close partnership in setting robust, meaningful KPIs, and we’ll keep advancing initiatives such as optimizing energy use across our operations,” he added.

Bach Hoa Xanh recorded revenue of VND13.1 trillion ($497.87 million) in the first quarter of 2026, up 19% from a year earlier, driven primarily by fresh food and FMCG sales.

The chain opened 280 new stores during January-March, with around 18% located in northern Vietnam and 14% in the central region. The rapid pace underscores its determination to meet its target of opening 1,000 new stores in 2026.

Bach Hoa Xanh in early May opened its first store in Hanoi, marking entry into one of the country’s most competitive consumer markets.

The first outlet was launched in Yen Tang village in Da Phuc commune on the outskirts of Hanoi, close to neighboring Bac Ninh province where the retailer already operates 12 stores.

Despite entering a metropolitan area with nearly nine million residents, Bach Hoa Xanh management said the company intends to prioritize expansion in provinces surrounding Hanoi rather than directly challenging entrenched urban competitors in the city center.