Cathay United Bank Ho Chi Minh City Branch (CUB HCM) marked its 20th anniversary in Vietnam with a year-long celebration, starting with a landmark environmental, social, and governance (ESG) seminar that gathered over 80 industry leaders to advance sustainable business. Held under the theme “Better Together,” the seminar titled, “ESG: Challenges and Practices for Sustainable Development” highlighted how ESG criteria are increasingly shaping global business strategy. It provided industry stakeholders with practical insights and strategic guidance to navigate the evolving sustainability landscape. As a commercial bank under Cathay Financial Holdings – one of Asia’s leading financial institutions – CUB actively partners with businesses transitioning towards sustainability. In 2015, it became the first Taiwanese bank to adopt the Equator Principles, aligning financed projects with international environmental and social risk management standards and laying a solid foundation for sustainable development. Michael Wen, executive vice president of CUB, emphasised, "Cathay United Bank aims to support our clients in navigating the evolving ESG landscape by providing insights into global and local trends, regulatory developments and practical implementation approaches. Vietnam’s rapid economic growth presents both opportunities and challenges in sustainability, and collaboration among businesses, financial institutions, and policymakers is key to driving meaningful change." Michael Wen, Executive Vice President of Cathay United Bank Nguyễn Hoàng Nam, ESG leader at PwC Vietnam, highlighted the ongoing challenges for domestic small and medium-sized enterprises (SMEs), “Approximately 39% of businesses have never heard of ESG, and over 60% are unaware of relevant regulations. Key barriers include financial constraints, a lack of clear legal guidance and limited ESG implementation capacity.” He urged companies to invest in internal ESG training, build reliable reporting data systems, seek green finance partnerships, and engage with industry associations to learn best practices. Practical models and industry best practices Despite the challenges, ESG implementation in Vietnam has made encouraging progress. The Vietnamese Government launched the Green Growth Strategy 2021–2030. The forum also 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. IDICO Industrial Park has introduced greener practices in heavy industry, such as rooftop solar systems and wastewater reuse, while investing in social housing to attract quality workers. Schneider Electric, with a Net Zero target by 2050, is developing clean technologies such as clean electricity and grid decarbonisation to reduce its carbon footprint. Partnering with Vietnamese businesses for sustainability By 2024, CUB had received nearly 90 prestigious awards for achievements in asset management, digital innovation and ESG practices, including a top 20% ranking in the Financial Supervisory Commission’s sustainable finance ratings. Guided by its vision of positioning Vietnam as its “second home,” CUB has strengthened ESG development across the country. The branch partnered with the Asian Development Bank (ADB) to finance Vietnam’s largest onshore wind power project in Ninh Thuận province, with a total investment of $107 million. CUB HCM has launched a green loan programme through capital expenditure (CapEx) financing to support eco-friendly projects. Factories under this initiative were the first in Northern Vietnam to receive the international LEED green building certification. VJ Lu, general manager of CUB HCM said, “Throughout today’s seminar, we’ve looked at real challenges and practical solutions for ESG and sustainable development. Whether it was energy transition, strategy, or real business stories—it all comes down to one thing: working together. Collaboration really is key if we want to drive long-term change.” As the opening event of CUB’s 20 years anniversary celebration in Vietnam, the seminar reaffirmed the bank’s commitment to connecting people, ideas and solutions. Embracing the message “Better Together”, CUB underscores that ESG is not a solitary path but a shared responsibility, requiring collaboration across the enterprise–finance–community ecosystem to move further, together.
