HDBank holds ground among Việt Nam’s top sustainable businesses for 5th straight year

HDBank has been named among Việt Nam’s Top Sustainable Companies this year for a fifth consecutive year by the Việt Nam Chamber of Commerce and Industry. Photo courtesy of HDBank

HCM CITY — HDBank, the Hồ Chí Minh City Development Joint Stock Commercial Bank, continues to spearhead environmental, social, and governance (ESG) initiatives, a key metric in appraising business sustainability.

The bank is a pioneer in promoting green finance and green transformation to achieve long-term sustainable development, which in particular helps it reduce costs and offer effective business resources to all economic sectors.

Over the past decade, HDBank has bolstered its financial prowess and operational efficiency, implementing comprehensive Basel III standards.

In a recent address at COP 28, Prime Minister Phạm Minh Chính underscored Việt Nam’s commitment to achieving net-zero emissions by 2050.

The World Bank estimates that by 2040 Việt Nam will require an additional investment of US$368 billion, roughly 6.8 per cent of GDP, per year for climate resilience and a net-zero emissions road map.

Despite Việt Nam’s nascent stage in climate finance there are ample opportunities for credit institutions to delve into and harness climate finance products.

Deputy governor of the State Bank of Vietnam, Phạm Thanh Hà, emphasised at a recent forum that green growth and sustainable development are pivotal trends embraced by nations worldwide.

Việt Nam is one of the countries grappling with environmental issues and heavily impacted by climate change, which adversely affect economic development and people’s lives, he said.

“The banking industry plays an important role in promoting the circular economy by offering financial products and services to individuals, households and businesses, and supporting business activities and investments that have a positive impact on the environment and society.”

Recent data indicates that in 2017-22 green credit by the banking system to various sectors grew at an annual average rate exceeding 23 per cent.

As of June 30, 2023, it had reached nearly VNĐ530 trillion, or 4.2 per cent of total credit in the economy.

The lending is primarily concentrated in renewable energy (45 per cent) and green agriculture (31 per cent) of the 12 sectors the State Bank of Vietnam wants lending focused on.

Greenhouse gas emissions

HDBank received the award for Best Bank for Sustainable Development Vietnam at the 2023 Global Banking and Finance Review Awards. Photo courtesy of HDBank

HDBank is committed to curbing carbon emissions through tangible actions, including employee awareness campaigns and community engagement.

By 2022 it had disbursed over VNĐ11 trillion for green conversion projects and high-tech agriculture.

Recognising carbon credits as a vital commodity in reducing greenhouse gas emissions, HDBank has been a trailblazer in the green credit realm since 2018.

It has inked cooperation agreements with esteemed foreign partners such as the International Finance Corporation (IFC), DEG (a subsidiary of the German investment and development bank KFW Group), Proparco of France, and programmes of the Asian Development Bank (ADB) and the World Bank.

Recently HDBank and IFC signed a memorandum of understanding to support small and medium-sized enterprises in scaling up finance and participating in global supply chains, including financing the high-tech agricultural supply chain.

Since 2018 HDBank has financed green projects in Việt Nam, delivering optimal financial solutions that align with sustainable values and environmental protection.

In 2019 it won the “Green Deal Award” from ADB, a pioneering accolade for Việt Nam.

The bank has also been bestowed with the “Best Bank for Sustainable Development Vietnam” award at the 2023 Global Banking and Finance Review Awards.

It also clinched a spot among the country’s Top Sustainable Companies chosen by the Vietnam Chamber of Commerce and Industry for a fifth consecutive year, having met all 130 criteria in the Corporate Sustainability Index. — VNS

In 2019 HDBank received the “Green Deal Award” from the Asian Development Bank, Việt Nam’s first ever winner of this honour. Photo courtesy of HDBank