Thailand and Vietnam stand out in terms of installed hydro, solar and wind capacity. HSBC, as part of its plan to provide between $750 billion and $1 trillion in financing and investment for decarbonisation projects through 2030, has been breaking new ground in Vietnam. The bank has provided loans for a nationwide rooftop solar project and trade facilities to finance the import of solar equipment, green trade finance for a wind power project, and green credit for a plastic recycling facility.
“HSBC has been in Vietnam for more than 150 years, and we recognise there is huge potential in Vietnam’s renewable energy, and the wind energy sector in particular is opening more opportunities for both energy corporates, investors and financial institutions,” said Stephanie Betant, Country Head of Wholesale Banking, Vietnam, HSBC. “Given the country’s new commitment to having 75% of its energy come from renewable sources by 2045, there will be a lot of opportunity in the years ahead.”
There are similarly exciting opportunities opening up in electric vehicles (EV). Adoption has generally been slow but, once again, Vietnam is leading the way, accounting for 99% of electric two-wheelers sold regionally in 2020.11 Electric two-wheeler sales are on course to accelerate after 2025 as falling lithium-ion battery prices push down ownership costs.
In embracing EVs, countries grappling with future emissions targets have a multi-pronged opportunity to cut their carbon footprints and tackle soaring air pollution, improve energy security, and drive economic growth through the creation of an EV service ecosystem, from raw material production to charging networks and battery recycling.
“Countries such as Thailand and Indonesia with large vehicle manufacturing industries have an opportunity to establish themselves on the electric value chain,” said Wai Shin Chan, Global Head of Climate Change Centre and ESG Research, HSBC. “As electrified transport becomes the norm, there will be a lot of ancillary investment opportunities.”
Produced in partnership with Bloomberg Media Studios