With Vietnam’s strong commitment at the COP26 last November to reach net-zero by 2050, the development and investment in renewable energy projects are of strategic national importance. HSBC Vietnam today [February 15] is signing a Letter of Intent (LoI) for evaluating and providing financing solutions with a focus on sustainability with Trung Nam Group, one of the largest and most high-profile renewable energy players in Vietnam.
Overview of the signing ceremony.
The signing ceremony is witnessed by Alok Sharma, COP26 President, on the occasion of his visit to Vietnam and Gareth Ward, British Ambassador to Vietnam. The LoI marks another step in HSBC Vietnam’s execution journey of the commitment to arranging up to USD12 billion of direct and indirect sustainable financing for Vietnam and the corporate sector in Vietnam by 2030.
With Vietnam’s strong commitment at the COP26 last November to reach net-zero by 2050, the development and investment in renewable energy projects are of strategic national importance. According to the LoI, HSBC will partner with Trung Nam Group to evaluate and provide sustainable financing solutions for the development of Trung Nam Group’s renewable energy projects across Vietnam.
The support includes the bank’s consultation and technical support so the Group can access capital markets in Vietnam and internationally with a focus on sustainability. “The increased mobilization of private sector financing for green projects was a major success of November's COP26 summit. Today's agreement between HSBC and Trungnam Group unlocks $12 billion of sustainable financing for Vietnam, showing the vital role that the private sector can play in enabling the green transition. I urge Vietnam to take full advantage of international green financing, in order to realize the ambitious net-zero and clean energy pledges made by Prime Minister Pham Minh Chinh in Glasgow,” said Alok Sharma, COP26 President.
Tim Evans, CEO of HSBC Vietnam stressed the urgency to address the climate change issue. “The time is now. We are therefore looking to immediately implement the undertaking we made last month to actively support Vietnam’s commitments made following COP26. We are looking to work together with the Vietnamese Government and people in realizing their clear ambitions to tackle climate change through both green finance and technology transfer,” Tim said.
“We are privileged to work together with Vietnamese corporates to combat climate change. As one of the largest companies in the renewable energy sector in Vietnam, Trung Nam Group and HSBC have a shared ambition to help build a greener Vietnam. The signing ceremony today reaffirms the importance of collectively addressing climate change and shows that through collaboration we can all make a material difference to Vietnam both today and for future generations,” he added.
According to Nguyen Tam Thinh, Trung Nam Group’s Chairman, the collaboration between the the two sides will generate critical financial solutions, assisting the Company's future growth of strategic projects. “Trung Nam Group will increase its own capacity in renewable energy to 3.8GW and 1.5GW of LNG Power by 2025, while also fulfilling the Government of Vietnam's commitment at COP26,” he said.
According to the World Bank, Vietnam is one of the top five countries likely to be affected by climate change, which will reduce the country’s national income by up to 3.5% by 2050. The COP26 last November in Glasgow was considered the world’s best last chance for climate action.
Following up on Vietnam’s commitment at COP26, HSBC Vietnam made a commitment to arranging up to US$12 billion to green the country by 2030. The bank will mobilize 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.