The transformation towards a green economy in Vietnam has now become a crucial necessity for businesses, not merely an environmental responsibility commitment. According to Hoang Thi Dieu Thuy, Senior Director of HSBC Vietnam, extreme climate change and global energy price fluctuations have forced companies to optimize their operations to be more economically efficient while remaining environmentally friendly.
In an effort to respond to pressures from investors, supply chain partners, and consumers, business actors are required to be more transparent regarding their carbon footprint and operational practices. However, Thuy cautioned that funding for this transition cannot rely solely on long-term investment loans. Businesses require a more dynamic and flexible financing strategy to balance infrastructure investment needs with daily working capital requirements.
HSBC suggests a combined financial instrument approach, where green loans can be utilized for specific projects such as renewable energy installations, while sustainability-linked loans provide operational flexibility with measurable KPI targets. Additionally, trade financing solutions also play an essential role as a 'lubricant' for the smooth flow of goods and capital during the daily transition process.
A fundamental step for companies is building a consistent data collection system, ranging from energy bill records to waste management. Although it does not have to be as elaborate as large-scale ESG reports, systematically arranged data will make it easier for companies to formulate realistic and financially measurable 12 to 24-month transformation plans.
To minimize the risk of 'greenwashing' and enhance the trust of funding institutions, companies are advised to conduct third-party verification of their sustainability data. Furthermore, strengthening internal governance is necessary so that every sustainable development metric can be accurately monitored and accounted for in all corporate financial documents.
On the other hand, the role of government is considered vital in providing clear regulations regarding market standards and green taxonomy. Lessons from countries like Singapore and Indonesia show that synchronized data infrastructure and a robust verification ecosystem are key catalysts in creating a competitive and sustainable business environment on the global stage.
