Ho Chi Minh City, April 12, 2024 – United Overseas Bank (Vietnam) Limited (UOB VIETNAM) has just signed a Green Trade Finance Facility Agreement with Ben Tre Import Export Joint-Stock Corporation (BETRIMEX). This marks an important milestone signifying the mutual commitment of the two entities towards promoting sustainable production and business activities.
The short-term trade finance credit that represents the first collaboration in green finance and other sustainable facilities between UOB VIETNAM and BETRIMEX - Vietnam's leading manufacturer of coconut products.
To secure this financing, BETRIMEX successfully navigated UOB VIETNAM's rigorous green credit approval process, which focuses on assessing compliance with ESG principles (Environmental, Social, and Governance) of the enterprise.
This financing will enable BETRIMEX to import or purchase raw materials and domestic goods to produce with products organic certifications including Fairtrade certified products. This certification ensures that manufacturers meet stringent requirements for social, environmental, and economic responsibility, particularly in areas such as Safe working conditions, Environmental protection, Sustainable livelihoods, Community development funds, and a connection between the buyer with farmer for social purpose.
"The application of strict international standards such as Fairtrade will enable BETRIMEX to contribute more actively to the environment and community, especially in ensuring the livelihoods of coconut growers. This will promote the sustainable development of Vietnam's agriculture industry, creating greater economic value. UOB Vietnam is proud to accompany businesses on this important journey through sustainable trade finance activities. We are also actively building up our pipeline of customers who are looking for green financing to help in their sustainability transition," shared by Mr. Lim Dyi Chang, Head of Commercial Banking, UOB Vietnam.
Vietnam ranks 4th in the Asia-Pacific region in terms of total export value of coconut and coconut products (*), with export turnover surpassing 900 million USD in 2023 according to statistics from the General Department of Customs.
Coconut trees provide a source of income for approximately 390,000 Vietnamese farming households. Beyond their direct economic value, coconut trees play a significant role in combating climate change, with one hectare of coconut trees capable of filtering 70-75 tons of CO2 per year. In the context of Vietnam's commitment to achieving net-zero greenhouse gas emissions by 2050, the economic value of coconut trees is expected to increase through the sale of carbon credits.
"The potential for the coconut industry remains vast as market demand for coconut products continues to rise, and there is still untapped value from coconut trees. With coconut trees now recognized as a key industrial crop, the coconut industry is expected to receive increased attention and support, leading to more sustainable development and new opportunities," stated BETRIMEX Chairlady. Collaborating with UOB through the Green Trade Finance Facility Agreement marks a new milestone in Betrimex's journey towards sustainable development. We hope that BETRIMEX and UOB Vietnam will continue to accompany each other in achieving our common goal of promoting practices in circular economy and sustainable development." added Ms. Dang Huynh Uc My, BETRIMEX Chairlady.
As industry leaders, both BETRIMEX and UOB VIETNAM have clear strategies for transitioning to emissions balance and share a vision and direction in their sustainable development strategies.
From left to right, in the center position: Mr. Lim Dyi Chang, Head of Commercial Banking, UOB Vietnam, and Ms. Dang Huynh Uc My, Chairlady of BETRIMEX.
UOB VIETNAM, as the leading bank in the Asia region, has committed to achieving net-zero carbon emissions across its business by 2050. The bank has achieved positive results in decarbonizing its current loan portfolio, with emissions intensity 7-14% lower than target reference pathways across six key carbon-intensive sectors, contributing nearly 60% of the entire portfolio loans of UOB VIETNAM.
As a leading enterprise in the production and export of coconut products, with an impressive output of nearly 40 million liters/kilograms (in 2023) and presence in 70 countries, Betrimex focuses on business operations, raw material development, production, and supply chain towards the goal of "zero-waste". Continuously innovating and maximizing the diverse and promising value chain of coconuts, Betrimex aims to enhance the economy for farmers as well as drive overall industry development.
BETRIMEX is constantly striving to find optimal solutions to enhance the coconut value chain, while simultaneously maintaining harmonious relationships with the environment and local farming communities. The success of the 10,000-hectare organic coconut plantation project for farmers is evidence of the green commitment that Betrimex is pursuing. Currently, the company is aiming to scale up the organic farming model, developing organic raw material areas up to 15,000 hectares by 2025. Additionally, Betrimex supports long-standing cooperatives that have achieved Fairtrade certification, providing access to millions of dong in Welfare Fund annually to improve infrastructure, education, healthcare, and more for local farming communities.
This green credit underscores UOB VIETNAM's efforts to provide diverse support to various sectors throughout the economy. Previously, UOB VIETNAM had granted credit to 17 renewable energy and clean energy projects, along with 7 green industry projects, as of the fourth quarter of 2023.
Across the region, UOB VIETNAM's green finance portfolio reached 44.5 billion SGD by the end of 2023, exceeding the bank's target of 30 billion SGD in green and sustainable financing by 2025.
UOB VIETNAM commenced operations in Vietnam three decades ago and remains dedicated to long-term investment in this promising market. Over the past three years, UOB VIETNAM has bolstered the registered capital from 3 trillion VND to 8 trillion VND. Recently, UOB Vietnam was honored as one of the Top 10 Best Foreign Invested Enterprise in Vietnam organized by VNEconomy for the 2023-2024 period. This recognition stems from its endeavors to attract foreign investment capital into Vietnam, thereby fostering job creation and making positive contributions to the country's economic development.
(*) According to Vietnam Coconut Association