Global trends, local challenges
To mark two decades of operation in Vietnam, the Ho Chi Minh City branch of Cathay United Bank (CUBHCM) hosted the ESG seminar titled “ESG: Challenges and Practices for Sustainable Development”, reflecting the bank’s long-standing commitment to innovation and sustainability. As ESG considerations increasingly shape global business strategies, the event provided a platform for industry stakeholders to gain insights into evolving trends, regulatory updates, and practical ESG implementation.
A subsidiary of Cathay Financial Holdings, one of Asia’s leading financial institutions, CUB has long gone beyond traditional banking. In 2015, it became the first Taiwanese bank to adopt the Equator Principles, committing to internationally recognized environmental and social risk management standards. This foundation has positioned CUB as a trusted partner for businesses transitioning toward sustainability.
Michael Wen, Executive Vice President of Cathay United Bank, emphasized the bank’s role in helping clients navigate the ESG landscape through strategic guidance and deep local knowledge. “Vietnam’s rapid economic growth presents both opportunities and sustainability challenges,” He emphasized. “Collaboration between businesses, financial institutions, and policymakers is essential for driving meaningful, long-term change.”
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Michael Wen, Executive Vice President of Cathay United Bank, stresses the institution’s dedication to supporting clients in the ESG transition, noting that partnership is vital for meaningful impact on Vietnam’s sustainability. Photo courtesy of CUB |
During the seminar, Nguyen Hoang Nam, ESG Leader at PwC Vietnam, pointed out that ESG awareness remains limited among local businesses. “About 39% of Vietnamese SMEs have never heard of ESG, and over 60% are unaware of relevant regulations,” Nam noted. Barriers such as financial constraints, vague legal frameworks, and limited capacity continue to hinder progress.
He recommended companies invest in internal ESG education, develop strong data reporting systems, partner with green finance institutions, and connect with industry associations to learn best practices.
Practical models and best practices
Despite the obstacles, ESG implementation in Vietnam is gaining momentum. The government has introduced the Green Growth Strategy for 2021–2030, signaling a national push toward sustainable economic development. The forum also highlighted leading enterprises in ESG application and certification, including IDICO Industrial Park, Schneider Electric, Ares International Certification, Dan-D Foods, and Micro Electricity.
IDICO Industrial Park has implemented rooftop solar systems and wastewater reuse in its factories while investing in social housing to attract skilled labor. Meanwhile, Schneider Electric, which aims for net-zero emissions by 2050, is innovating in clean electricity and grid decarbonization to lower its carbon footprint.
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Cathay United Bank forum in HCMC featured representatives from leading companies in ESG execution and certification, including IDICO Industrial Park, Schneider Electric, Ares International Certification, Dan-D Foods, and Micro Electricity. Photo courtesy of CUB |
Partnering for sustainability
By 2024, Cathay United Bank had received nearly 90 prestigious awards for excellence in asset management, digital innovation, and ESG practices, reinforcing its status as a forward-thinking financial institution. Most recently, it ranked in the top 20% of the Financial Supervisory Commission’s sustainable finance ratings.
In line with its commitment to Vietnam as a “second home,” CUB has actively promoted ESG practices across the country. It partnered with the Asian Development Bank to finance Vietnam’s largest onshore wind project in Ninh Thuan Province, with a total investment of US$107 million.
CUBHCM has also rolled out a green CAPEX loan program to fund environmentally friendly development projects. The first-phase factories financed under this initiative were the first in northern Vietnam to receive LEED international green building certification.
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CUBHCM Head Lu Wei Chieh (L, 6th) emphasizes that they have looked at real challenges and practical ideas for ESG and sustainable development. Photo courtesy of CUB |
