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Việt Nam ASEAN’s second largest green bond issuer in 2021

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

HÀ NỘI —  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.

Source: https://vietnamnews.vn/economy/1252301/viet-nam-aseans-second-largest-green-bond-issuer-in-2021.html

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Vietnam’s 2022 economic growth projected at 7%

Vietnam’s GDP is likely to expand by around 7 percent in 2022, much higher than 2.58 percent growth of 2021.

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Minister of Planning and Investment Nguyen Chi Dung made the above statement at the Cabinet meeting in Hanoi on July 4.

With this scenario, the economy needs to expand 9 percent in the third quarter and 6.3 percent in the last quarter this year, the minister said.

In the first half, the Southeast Asian country’s GDP accelerated to 6.42 percent growth compared to the optimistic scenario of 5,1-5,7 percent as figured out in the Government’s Resolution No. 01/NQ-CP, dated January 01, 2021 on major tasks and solutions for implementation of socio – economic development plan and state budget estimate for 2022. 

Especially, the GDP grew 7.72 percent in the second quarter, which is the fastest growth pace for April-June period since 2011.

Earlier, the World Bank predicted Vietnam’s 2022 GDP growth at 5.5 percent if the COVID-19 pandemic is controlled.

The projection is lower than the Vietnamese Government’s predictions at 6.5-7 percent, HSBC at 6.5 percent and Standard Chartered at 6.7 percent.

Source: https://e.nhipcaudautu.vn/economy/vietnams-2022-economic-growth-projected-at-7-3346528/

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Dragon Capital buys 2.1 million shares of Sacombank

Asset management company Dragon Capital has bought 2.1 million shares of HCMC-based Sacombank, increasing its stake in the bank to 6.09 percent.

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On June 29, two affiliated funds, CTBC Vietnam Equity Fund and Norges Bank, bought 2.3 million shares of the lender while a third, Samsung Vietnam Securities Master Investment Trust, sold 200,000 shares.

The value of the deal is estimated at VND47.5 billion (US$2.03 million) based on the share’s closing price last Wednesday.

Funds under Dragon Capital own 114.8 million shares or a 6.09 percent stake in the bank.

In March, Dragon Capital had raised its stake from 4.98 percent to 5.05 percent, after its largest fund, Vietnam Enterprise Investment Limited, bought 1.25 million shares.

Source: VnExpress

Source: https://e.nhipcaudautu.vn/companies/dragon-capital-buys-21-million-shares-of-sacombank-3346515/

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Vietnam targets 7% GDP growth this year: minister

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HANOI — Vietnam is aiming for economic growth of 7% this year, the country’s planning and investment minister said on Monday, higher than an official target of 6.0%-6.5% set previously.

To achieve this, year-on-year economic growth in the third quarter needs to be 9.0% and in the fourth quarter 6.3%, minister Nguyen Chi Dung also said during a government meeting.

Dung said Vietnam’s budget was in surplus, giving scope for fiscal policy to be used to support businesses and residents.

“Credit institutions will need to further cut their lending interest rates to reduce input cost pressure for businesses and for the economy,” he said.

Vietnam, a regional manufacturing hub, started lifting its coronavirus curbs late last year, allowing factories to resume full operations.

The economy is recovering after growing only 2.58% last year, the slowest pace in decades.

The Southeast Asian country reported GDP growth of 7.72% in the second quarter, backed by strong export growth, but warned of upward inflation pressure for the rest of the year. 

Source: https://tuoitrenews.vn/news/business/20220704/vietnam-targets-7-gdp-growth-this-year-minister/67932.html

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