Saturday, November 9, 2024 11:10:18 AM - Markets closed
VN-INDEX 1,252.56 -7.19/-0.57%
HNX-INDEX 226.88 -0.61/-0.27%
UPCOM-INDEX 92.15 -0.17/-0.18%
Green investment funds forecast to grow in Vietnam
vietnamnews - 9/30/2024 4:46:23 PM
 (0 ratings. You must sign in to rate.)
The United Vietnam ESG Equity Fund (UVEEF) of UOB Asset Management Vietnam (UOBAM Vietnam) is currently the first and only open-ended fund in the Vietnamese financial market that applies ESG standards to select investment stocks.
 
 
Sustainable investment capital in Vietnam is not currently developing as strongly as in other countries, but  Vietnam has great potential in attracting capital. Photo ocb.com.vn
 
 Though the green fund market is still in the early stages in Vietnam, it has begun to attract attention and promises to become an important part of the country’s green financial system.
 
In 2017 the Ho Chi Minh City Stock Exchange (HoSE) officially introduced the Vietnam Sustainability Index (VNSI), with the aim of determining sustainable development standards for listed companies and supporting institutional and individual investors in identifying businesses with green characteristics for investment.
 
However, the investment fund market in Vietnam currently does not have specialised funds that track the Vietnam Sustainability Index (VNSI index) or funds that focus entirely on green investment.
 
The United Vietnam ESG Equity Fund (UVEEF) of UOB Asset Management Vietnam (UOBAM Vietnam) is currently the first and only open-ended fund in the Vietnamese financial market that applies ESG standards to select investment stocks.
 
The fund, which was established in November 2022, selects stocks based on high ESG practice standards according to its own rating, along with fundamental factors and good business prospects. The fund does not invest in stocks in some industries, such as coal mining or coal-fired power, which have negative impacts on the environment.
 
Director of UOBAM Vietnam’s ESG division that manages the UVEEF, Truong Minh Hung, said as of April 2024, the net asset value of the UVEEF increased five and half times compared to the time of establishment in November 2022.
 
In 2023 - a year with many challenges for the economy as well as the Vietnamese stock market - the investment performance of the UVEEF was quite good compared to the market. The net asset value per fund certificate surged by 17.7 per cent, 5.5 per cent higher than the increase of the VN-Index. This growth rate put it in the top ten stock funds with impressive achievements in 2023, according to statistics from the open-ended fund distribution platform Fmarket. Hùng added that this is a positive signal that Vietnamese investors are increasingly paying attention to ESG factors and are interested in sustainable investment products.
 
A survey by Vietnam Plus also reports that stocks in the VNSI basket also appeared frequently in the investment portfolios of foreign funds investing in the Vietnamese stock market. It shows that the common point in the investment taste of the funds is gradually moving towards sustainable development, which will open up prospects for the development of specialised green investment funds in the future.
 
According to Hung, though sustainable investment capital in Vietnam currently does not develop as strongly as in other countries, Việt Nam has great potential to attract capital, thanks to a number of important factors.
 
Firstly, Hung said, the Vietnamese Government has made a strong commitment to promoting green transformation and investing in renewable energy, with the goal of achieving net zero emissions by 2050.
 
Secondly, awareness and interest in sustainable investment among consumers and investors are increasing, especially as Vietnamese businesses must meet high ESG standards set by international importers and markets.
 
In addition, Vietnam has received financial commitments from international organisations, such as the Just Energy Transition Partnership (JETP) agreement with the G7 that will finance US$15.8 billion to support the transition to a green economy and reduce greenhouse gas emissions.
 
Experts say that although green funds in Việt Nam have many favourable factors for growth, it is necessary for the domestic business community to participate in implementing ESG strategies and green growth goals to help the funds develop and promote their role as a driver of green capital.
 
According to representatives of UOB Vietnam, the main challenge when investing in ESG in the Vietnamese market is that many companies in the stock market are not fully aware of the importance of applying good ESG practices in business operations, so they have not allocated resources properly.
 
This results in limited information and data on ESG published by companies. Currently, companies are still not open in sharing information related to ESG, making it difficult to collect the necessary information.
 
Moreover, Vietnam still lacks independent assessment organisations to ensure the transparency and reliability of ESG reports. — VNS 
 
Read original article here

Read original article here

Newer News
10:01 Prices of raw materials surge, led by cocoa with a 6.3% increase
09:55 Dak Lak to carry out reforestation project worth over US$19 million
09:41 Nam Dinh unveils its seventh industrial park
09:37 Hanoi's 10-month export value tops $15.5 billion
09:30 EU is important VN partner for trade, green transformation: forum
08/11 Automotive support industry strives to become spare part supplier
08/11 Vietnam’s auto industry strives to reach global recognition
08/11 Vietnam Air Cargo Day 2024 Forum takes place for the first time in Hanoi
08/11 Bac Giang promotes service development to attract high-quality FDI
07/11 Foreign investment disbursement hits $19.58b in 10 months
Older News
30/09 As recovery continues, Việt Nam awaits further lift
30/09 5G will play key role in building a digital economy, experts say
30/09 Khanh Hoa draws Korean investors to green, sustainable industries
30/09 South Africa launches anti-dumping investigation on car and bus tyres from Vietnam
30/09 Vietnamese firms urged to focus on high-quality tea products
30/09 Rubber industry implements green growth to promote exports
30/09 Unprecedented opportunity for oil giants in offshore wind power
30/09 Businesses need to strengthen capacity for responding to trade defence lawsuits
27/09 Vietnam's wood exports rise, but challenges from market and natural disasters persist
27/09 Vietnamese, Slovenian trade agencies seal cooperation pact
 
Newsletter Signup
Top Stories
VCCI recommends mineral mining rights be granted through auction and bidding
Central bank works to raise interbank rates and ease forex market
Inflation a concern following salary increases
National Council for Sustainable Development established
Việt Nam, Cambodia look forward to $20 billion trade
Market Update
Last updated at 3:05:02 PM
VN-INDEX 1,252.56 -7.19/-0.57%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.