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BIZ GUEST

CELEBR ATING 120 YEARS IN VIETNAM

WHERE IT’S

NEEDED MOST

Nguyen Thuy Hanh, Deputy General Director, Head of Corporate,
Commercial and Institutional Banking, at Standard Chartered
Vietnam, spoke with VET about its e!orts in sustainable finance and
what benefits are on o!er.

PHOTO: STANDARD CHARTERED VIETNAM/ CCIB HEAD

% What trends are there in sustainable increasing interest among both domestic practices and attracting investment in such
finance around the world and what is and international investors on environ- ventures. Vietnam’s participation in inter-
its potential in Vietnam? mentally and socially-responsible investment national agreements and partnerships
Sustainable finance is continuing to opportunities. Additionally, the Vietnamese focused on sustainable development, such
gain momentum globally. We are seeing Government has demonstrated a commit- as the UN Sustainable Development Goals,
growing demand for environmental, social, ment to sustainability through initiatives has also helped create an appropriate envi-
governance (ESG) advisory services and such as the National Strategy on Green ronment for cooperation and investment in
for products such as green, social, and sus- Growth, providing an environment con- sustainable finance initiatives.
tainability-linked loans or bonds. Increas- ducive to the growth of sustainable finance. Vietnam has already recorded over $50
ingly, sustainability criteria are also being Vietnam also has abundant renewable million in renewable energy exposures and
integrated into mainstream financial prod- energy resources, such as solar and wind another $50 million in business banking
ucts. Regulatory frameworks and reporting power, which present attractive investment loans supporting access to finance, accord-
standards are evolving in parallel with this opportunities for sustainable finance projects. ing to Standard Chartered’s Sustainable
to promote transparency and accountability Rising consumer awareness on environ- Finance Impact Report 2022.
in sustainable finance initiatives. mental and social issues also increases Overall, with supportive policies, abun-
Accelerating sustainable finance in Viet- demand for sustainable products and services, dant renewable resources, and growing
nam holds significant potential, as there is encouraging business to adopt sustainability awareness, Vietnam is poised to harness
the potential of sustainable finance to drive
economic growth while addressing envi-
ronmental and social challenges.

% Some claim that a focus on ESG can
impact profitability. What are your
views on this? Will Standard Chartered’s
focus on sustainability as one of its four
strategic priority areas impact its prof-
its? If so, how can this be addressed?
ESG is not simply “nice to have”. Today,
it is a “hygiene” factor when conducting
business. This is because considering envi-
ronmental, social, and governance concerns
when making investment decisions can help
companies identify and mitigate risks that
go beyond traditional financial accounting.
By integrating sustainability into strategic
decision-making and making more envi-
ronmentally and socially-responsible invest-
ments, organizations can better manage

42 | VIETNAM ECONOMIC TIMES | MARCH 2024 en.vneconomy.vn