Under an agreement signed on Novermber 14 by HSBC Vietnam and Vinh Hoan Corporation (Vinh Hoan), the former will provide green trade financing to the latter.

This marks the first ever green facility that HSBC Vietnam has arranged for Vinh Hoan, and also for the seafood sector in the country, demonstrating its support for the Vietnamese seafood producer on their sustainability journey.

As a tropical country with long coastline covering over 2,600km and home to more than 1,300 seafood species, Vietnam owns all advantages and potentials for the prosperous seafood sector. The industry accounts for nearly one quarter of agriculture GDP, while Vietnam’s seafood industry is the world’s third largest exporter by value, and the fourth largest by volume.

However, Vietnam’s strengths in seafood industry might rapidly diminish, as Vietnam is warned to be one out of the top five countries likely to be adversely affected by climate change.

“Dealing with climate change and protecting our economy from its impacts, including the seafood industry, is a priority for HSBC in Vietnam,” shared Mr. Ahmed Yeganeh, Head of Wholesale Banking, HSBC Vietnam. “It is central to our strategy to support corporates in Vietnam who have a clear sustainability vision and plan like Vinh Hoan.”

To receive the short-term green trade loan as a support for their working capital for sustainable seafood production, Vinh Hoan and its subsidiaries have gone through HSBC’s stringent credit approval and management process for sustainable financing. The green facility must also meet the high standards listed under the international Green Loan Principles, jointly issued by Loan Market Association and Asia Pacific Loan Market Association.

Ms. Nguyen Ngo Vi Tam, CEO of Vinh Hoan, shared that Vinh Hoan has pursued circular economy model in aquaculture production for years, which enables value chain optimization, waste minimization, and value creation from by-products and substandard products. "I hope this first step will pave the way for many more sustainable collaborations between both organisations in the upcoming time," she added.

This meaningful first deal in aquaculture sector has indicated HSBC’s efforts in its green commitment while supporting Vietnamese corporates in different industries, including real estates, renewable energy, data centre, recycled plastics, recycled papers, etc. in their green transition journeys. It also underlines HSBC’s strong sustainable banking product line that can satisfy increasingly different and sophisticated requirements from businesses.