The Bamboo Capital Group (HoSE: BCG) has announced its decision to invest in the establishment of BCG Eco, a company specializing in forestry, forest care, and seedling cultivation. The move is part of its strategic efforts to pursue sustainable development goals and seize significant opportunities in the promising carbon credit market.
BCG Eco will focus on forestry activities, forest care, and the cultivation of forestry seedlings. It has charter capital of VND20 billion ($800,580), with Bamboo Capital contributing VND5 billion ($200,120), or 25 per cent of the capital, and BCG Land, a subsidiary of Bamboo Capital, contributing 26 per cent. The investment comes from Bamboo Capital’s own funds. BCG Eco’s headquarters will be located alongside Bamboo Capital’s in Thao Dien ward, Thu Duc city, Ho Chi Minh City.
At the 2024 annual general meeting, Mr. Nguyen Ho Nam, Group Chairman and Chairman of the Strategic Council of BCG, said BCG is accelerating its ESG (environmental, social, governance) journey by implementing leading modern platforms to monitor, analyze, and evaluate carbon emissions across its member companies. Its sustainability reports are increasingly being held to higher and stricter standards, forming a crucial part of its green and sustainable development plan.
In line with the Group’s sustainable development strategy, BCG Eco was established to enhance environmental protection activities, tap into the potential of the carbon credit market, and promote ESG initiatives.
The carbon credit market is becoming an increasingly lucrative business sector globally, and Vietnam is following this trend. With the growing severity of climate change and environmental issues, countries and businesses are focusing more on reducing carbon emissions. At COP26, the Vietnamese Government committed to achieving net-zero emissions by 2050, creating significant opportunities for the development of a carbon credit market.
According to Decree No. 06/2022/ND-CP, which outlines the roadmap for the development and implementation of a domestic carbon market, Vietnam will focus on building regulations for managing and operating a carbon market to 2027. By 2028, a carbon credit exchange is expected to be operational. This will mark a critical milestone in Vietnam’s efforts to achieve its net-zero commitment, while also opening up substantial opportunities for pioneering businesses in carbon credit development and trading.
Vietnam’s forestry sector successfully sold 10.3 million forest carbon credits in 2023, equivalent to 10.3 million tons of CO2, through the World Bank. With a selling price of $5 per ton of absorbed carbon, the total value of the contract stood at $51.5 million. This highlights the significant potential of the carbon credit market.
Recognizing this potential, BCG Eco has thoroughly prepared to capitalize on opportunities in Vietnam’s carbon credit market. With strong backing from the Bamboo Capital Group and advice from experienced international partners, BCG Eco is leveraging this preparatory phase to build capacity and develop reforestation projects.
Additionally, BCG Eco aims to become an independent consultancy, offering comprehensive solutions to businesses seeking to participate in the carbon credit market, promote ESG initiatives, and expand sustainable development-related activities.
The establishment of BCG Eco is a key component of Bamboo Capital’s long-term strategy to drive sustainable development and create lasting value for shareholders, partners, and the community.
With the support of ongoing policy and regulatory developments, BCG Eco is poised to deliver significant economic and social value, contributing to Vietnam’s goal of achieving net-zero emissions by 2050.
In early August, the Bamboo Capital Group was recognized with a “Top 50 Outstanding Sustainable Development Enterprises in Vietnam 2024” award. The accolade reflects the company’s commitment to numerous sustainable development initiatives rooted in the three ESG pillars of environmental, social, governance, with a sustainable development strategy closely integrated with its business goals.
Beyond its sustainability efforts, Bamboo Capital’s business performance has shown strong results. In the first half of this year, the company reported VND2.1 trillion ($84.2 million) in net revenue, a 16 per cent increase year-on-year, and an after-tax profit of VND417 billion ($16.72 million), or more than double the figure in the same period last year.
As of the end of June, BCG’s total assets had grown by VND3.2 trillion ($128.1 million) since the start of the year, reaching VND45.31 trillion ($1.81 billion). Cash reserves saw a significant increase of 56 per cent, rising to VND1.18 trillion ($47.3 million), while short-term receivables climbed to VND14.872 trillion ($596.3 million).
BCG also recently increased its charter capital from VND5.334 trillion ($213.8 million) to VND8.002 trillion ($320.8 million).
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