Việt Nam"s second largest green bond issuer in 2021

The country alone issued total $1.5 billion of GSS in 2021, nearly 5 times higher than the value of $0.3 billion in 2020, maintaining stable growth for three consecutive years.

A wind power farm of Bạc Liệu Wind Power Plant. VNA/VNS Photo

The Climate Bonds Initiatives (CBI) and HSBC have just released the ASEAN Sustainable Finance - State of the Market 2021 report.

Along with other countries in the region, Việt Nam’s sustainable debt capital market has experienced strong growth in the past year.

The report showed that the sustainable debt markets in the six largest ASEAN economies - Singapore, Thailand, Indonesia, Malaysia, the Philippines and Việt Nam - continues to grow rapidly in 2021.

Issuance volumes of green, social and sustainability bonds (GSS) reached a record of US$24 billion, an increase of 76.5 per cent compared to $13.6 billion in 2020, while sustainability-linked debt surged 200 per cent over 2020 to $27.5 billion.

The growth rate is said to reflect the positive sentiment of the ASEAN region in allocating capital for the purpose of responding to the COVID-19 pandemic, and supporting sustainable economic growth amid climate change and low carbon emissions in the long term.

Việt Nam alone issued a total $1.5 billion of GSS in 2021, nearly five times higher than the value of $0.3 billion in 2020, which maintained stable growth for three consecutive years.

The majority of green bonds and loans in the country last year came from the transportation and energy sectors. Việt Nam is the second largest source of green debt issuance in ASEAN, after Singapore, according to the report.

The two largest transactions that account for most of Vietnamese GSS were $425 million of sustainability bonds with stock options from Vinpearl and a green loan worth $400 million from VinFast (value at the time of transaction announcement).

HSBC said that the country’s bond market has swelled over $70 billion in 2021. More than 80 per cent of the issuance was government bonds, while development banks were the second largest issuers.

At the end of 2020, the National Assembly passed the Law on Environmental Protection 2020 with some important amendments, including additional definitions, general requirements for green bonds and incentives for issuers. Việt Nam is also developing a classification system along with the law, which is expected to be enacted this year.

As Việt Nam announced its commitment to achieve net-zero emissions by 2050 at the COP26 conference, it will contribute to the stronger promotion of capital mobilisation through sustainable financial markets to accelerate the carbon emission reduction process.

Tim Evans, General Director of HSBC Việt Nam, said that all forms of sustainable finance aim toward the common goal of supporting Việt Nam realise its target of achieving carbon neutrality by 2050, as committed.

Although the sustainable financial market is growing in Việt Nam and ASEAN, the need to mobilise funds to mitigate and help countries adapt to climate change is still very high, Evans added. Fundraising will support the transition to a low-carbon economy that is essential to achieve the Paris Agreement goals and ease the severe impacts of climate change for the ASEAN region and worldwide.

However, experts also said that there is still a lot of work to be done for the ASEAN region to achieve the green growth target.

Some policies in the region have contributed to the rapid growth of sustainable finance in ASEAN and it is clear that awareness of climate risks has risen among both policy makers and investors, said Sean Kidney, CBI Director General.

Nevertheless, there is still a gap that needs to be filled soon. The sectors that emit a lot of emissions and find it difficult to change must quickly shift from "brown" to "green". These are activities, assets and projects related to energy, heavy manufacturing and agriculture.

"National initiatives such as Singapore's Green Financial Industry Taskforce (GFIT) are a good start. However, we need to act faster to get vulnerable regions like ASEAN less affected by the consequences of climate change," the CBI Director General said. VNS

Source: VNA
vietnamnews.vn

Related News

Vietnam’s exports to the U.S. near US$100 billion milestone

Vietnam’s exports to the U.S. near US$100 billion milestone

VCN - By the end of October, Vietnam's exports to the United States approached US$100 billion, reaffirming its position as Vietnam's largest export market.
Six export markets of billion growth

Six export markets of billion growth

VCN - Our country's key export markets maintained impressive growth momentum. In particular, six markets increased by US$1 billion or more.
Rice exports to China drop sharply

Rice exports to China drop sharply

VCN - While the amount of rice exported to Southeast Asian markets increased sharply, the results in the Chinese market were the opposite.
Cambodia Customs facilitates fastest movement of goods in transit

Cambodia Customs facilitates fastest movement of goods in transit

VCN – The General Department of Customs and Excise of Cambodia (GDCEC) facilitates goods in transit, prompting movement of goods within ASEAN, said by Mr. Kun Nhem – Minister Attached to the Prime Minister, Director General of the GDCEC on the sidelines of the 33rd ASEAN Directors-General of Customs Meeting.
Comment

Latest News

Personal income tax proposed for interest on some bank savings accounts

Personal income tax proposed for interest on some bank savings accounts

Instead of the current personal income tax exemption on interest from all individual bank savings accounts, the proposal would exempt tax only for low amounts of savings.
Banks set for aggressive bond issuance in 2025 to fuel growth

Banks set for aggressive bond issuance in 2025 to fuel growth

With a higher credit growth goal set by the SBV, banks are ramping up their efforts to secure funding through bond issuance.
Central bank cuts interest rate on bills for first time in 2025

Central bank cuts interest rate on bills for first time in 2025

According to data from the financial data provider Wichart, the SBV issued VNĐ19.6 trillion of bills in the past week. The interest rate on the bills decreased by 0.1 percentage point, from 4 per cent to 3.9 per cent on February 14.
Focusing on inspecting inventory of public assets at units with large and complex assets

Focusing on inspecting inventory of public assets at units with large and complex assets

VCN - According to Official Dispatch No. 1456/BTC-QLCS on inspecting the preparation and implementation of the General Inventory of Public Assets recently issued by the Ministry of Finance, the inspection of the inventory of public assets focuses on units with large asset scale and large number of inventory items, complex assets, and slow implementation progress.

More News

The government seeks approval for revised GDP, CPI targets

The government seeks approval for revised GDP, CPI targets

VCN - The Government submitted to the National Assembly for consideration and comments on adjusting the target for the growth rate of gross domestic product (GDP) to 8% or more; the average growth rate of the consumer price index (CPI) to about 4.5-5%.
Fiscal, monetary policies support demand stimulation, price stabilisation

Fiscal, monetary policies support demand stimulation, price stabilisation

These efforts, in conjunction with the implementation of monetary policies and other macroeconomic policies, aim to solve difficulties for businesses and the public, stabilise the macroeconomy, control inflation, ensure the balance of the economy, promote economic growth, and secure social welfare and people’s livelihoods.
Vietnam secures VND 157 billion from state enterprise divestment in 2024

Vietnam secures VND 157 billion from state enterprise divestment in 2024

VCN - The Ministry of Finance reported that in 2024, the divestment of state capital in 5 enterprises (F1) generated VND 157 billion from an initial value of VND 145 billion
Vietnam gears up for potential inflation impact in 2025

Vietnam gears up for potential inflation impact in 2025

VCN - For sound price management and inflation control, Deputy Prime Minister Ho Duc Phoc directed officials to vigilantly track both domestic and international market dynamics. The goal is to proactively develop flexible strategies and solutions, enabling a swift response to any emerging challenges.
VN’s credit conditions in 2025 expected to be stable

VN’s credit conditions in 2025 expected to be stable

The credit conditions for Việt Nam will stabilise in 2025, after improving substantially over the past year, the rating agency VIS is forcasts.
State revenue in first month of the year equal to 14% of the estimate

State revenue in first month of the year equal to 14% of the estimate

VCN - According to the Ministry of Finance, in January - the first month of 2025, the total state budget revenue is estimated at VND275.9 trillion, equal to 14% of the estimate; meanwhile, the total state budget expenditure is estimated at VND134.4 trillion.
Securities 2025 expects a breakthrough in scale and quality

Securities 2025 expects a breakthrough in scale and quality

VCN – The positive factors inherent in the macro economy and the Vietnamese stock market will continue to create the foundation for the market to maintain stability, good liquidity, and growth in both scale and quality in the new year of At Ty 2025, Chairwoman of the State Securities Commission Vu Thi Chan Phuong said.
Cash reserves in stock accounts at six-quarter low amid margin rise

Cash reserves in stock accounts at six-quarter low amid margin rise

These funds are readily available in investor accounts, but remained undeployed as of the year-end.
Five solutions for developing stock market in 2025

Five solutions for developing stock market in 2025

VCN - On February 5, 2025, at the Gong-beating ceremony to open the stock trading at the Ho Chi Minh City Stock Exchange (HOSE), Deputy Minister of Finance Nguyen Duc Chi introduced five solutions for comprehensive development of the stock market.
Read More

Your care

The system has not recorded your reading habits.

Please Login/Register so that the system can provide articles according to your reading needs.

Latest Most read
Personal income tax proposed for interest on some bank savings accounts

Personal income tax proposed for interest on some bank savings accounts

Instead of the current personal income tax exemption on interest from all individual bank savings accounts, the proposal would exempt tax only for low amounts of savings.
Banks set for aggressive bond issuance in 2025 to fuel growth

Banks set for aggressive bond issuance in 2025 to fuel growth

With a higher credit growth goal set by the SBV, banks are ramping up their efforts to secure funding through bond issuance.
Central bank cuts interest rate on bills for first time in 2025

Central bank cuts interest rate on bills for first time in 2025

According to data from the financial data provider Wichart, the SBV issued VNĐ19.6 trillion of bills in the past week. The interest rate on the bills decreased by 0.1 percentage point, from 4 per cent to 3.9 per cent on February 14.
Focusing on inspecting inventory of public assets at units with large and complex assets

Focusing on inspecting inventory of public assets at units with large and complex assets

VCN - According to Official Dispatch No. 1456/BTC-QLCS on inspecting the preparation and implementation of the General Inventory of Public Assets recently issued by the Ministry of Finance, the inspection of the inventory of public assets focuses on units
The government seeks approval for revised GDP, CPI targets

The government seeks approval for revised GDP, CPI targets

The Government submitted to the National Assembly for consideration and comments on adjusting the target for the growth rate of gross domestic product (GDP) to 8% or more
Mobile Version