Vietnam's Techcombank to fund $2B in ‘green’ projects this year

Environmental responsibility can go hand in hand with business growth.

Techcombank plans to issue $2b in green financing this year after releasing its green bond framework in December, where it outlined plans to fund projects that support the environment, the first private bank to do so in Vietnam.

The funding will support renewable energy projects, including solar and wind farms, as well as initiatives in sustainable agriculture and water resource management, said Thai Minh Diem Tu, chief marketing officer at Techcombank.

“We are proud to lead green financing in Vietnam,” she said. “Our goal is to contribute to a greener future for Vietnam by supporting projects that align with global sustainability standards.”

Rated “medium green” by S&P Global, the framework reflects the publicly listed Hanoi-based lender’s strong alignment with global sustainability benchmarks and supports the Southeast Asian nation’s transition to a greener economy.

The framework aligns with the International Capital Market Association's green bond principles, ensuring that proceeds are allocated to projects that deliver tangible environmental benefits. 

While the green bond framework is at the core of its sustainable financing, Techcombank itself practices sustainability in its operations, products, and communities as part of its holistic Environmental, Social, and Governance (ESG) strategy.

“Sustainability is at the core of our business transformation,” Tu said. “By reducing the environmental impact of our operations, we show that environmental responsibility can go hand in hand with business growth.”

Techcombank’s operational sustainability is reflected in its flagship offices in Hanoi and Ho Chi Minh City, which are certified LEED Gold. These buildings are designed to cut energy consumption by 26%.

Techcombank also introduced the Visa Eco debit card in 2024, which is part of its ESG-focused financial products. The card lets holders track and offset their carbon footprint based on their spending.

Through the Visa Eco Card, customers can track their emissions by sector, offset them through local environmental protection projects, and contribute to sustainable development.

Techcombank supports financial literacy programs and fosters health and social cohesion through events like the Ho Chi Minh City International Marathon. The marathon’s seventh edition last year drew more than 18,000 participants.

“Our participation in the marathon reflects our belief in the power of sports to unite people, promote healthy living, and boost the local economy,” Tu said. “This event is a key part of our social commitment, strengthening the bank’s contribution to Vietnam’s development.”

Techcombank’s green bond framework was developed with advisory support from the Global Green Growth Institute (GGGI).

“Partnerships with GGGI allow us to bring global expertise into our local sustainability strategy,” Tu said. “We believe that strong partnerships are key to achieving long-term sustainability.”

“As a leading bank, we have a unique opportunity to influence positive change. By embedding sustainability into our core business strategy, we are helping to shape the future of banking in Vietnam,” she added.