Vietnam has committed to achieving net-zero emissions by 2050. As renewable energy infrastructure expands rapidly and international standards become increasingly stringent, green finance is emerging as a key focus for the business community. In an interview with VnExpress, Mr Abdul Raof Latiff shared how DBS is supporting Vietnamese enterprises in overcoming bottlenecks on their journey to access green capital and implementing ESG initiatives.
What opportunities does Vietnam’s shift towards renewables and its net zero 2050 commitment create for investors and businesses?
Vietnam is entering a critical transition phase, as renewable energy accounts for an increasingly larger share of the energy mix, alongside the country’s pledge to reach net-zero emissions by 2050. This context is opening up opportunities to attract investment flows, particularly foreign direct investment (FDI), while creating new growth areas for sectors such as renewable energy, green infrastructure, sustainable agriculture, and water management.
From a financial perspective, businesses that proactively pursue green transformation, enhance data transparency, and strengthen ESG governance will have an advantage in accessing long-term, lower-cost capital and integrating more deeply into global value chains.
In your view, what are the primary reasons Vietnamese businesses hesitate to transition to more sustainable practices or invest in green projects?
From our experience working with enterprises, one of the difficulties is a lack of awareness and expertise about ESG principles, their benefits and how to implement them effectively.
In addition, the upfront costs of green projects are often high, while the lack of clear payoffs for investors makes small and medium-sized enterprises hesitant to transition.
Most importantly, the biggest challenge lies in data verification. To qualify for green credit, businesses need accurate data to demonstrate their ESG commitments. However, collecting and measuring data, especially Scope 3 emissions across the supply chain, can be particularly complex for companies. Many companies struggle to gather and track such metrics from their suppliers. Data transparency is therefore the key to unlocking green capital; without transparent and verifiable data, the door to affordable international funding becomes narrower.
With those difficulties, what solutions does DBS offer to help Vietnamese businesses gradually and effectively access green capital?
We focus on partnering with businesses to build transition roadmaps that match each stage of their development. DBS offers two main financing options. The first is green loans for projects with clearly defined use of proceeds, such as renewable energy or green buildings. The second is sustainability-linked financing, where loan terms are tied to the borrower's achievement of pre-defined Sustainability Performance Targets (SPTs). If these targets are met, the company can benefit from more preferential interest rates. This approach encourages continuous environmental improvement rather than short-term or one-off “green” efforts.
Beyond capital, DBS also provides advisory on financing structures, supports businesses in aligning with international standards, and applies digital solutions to simplify documentation, reporting, and real-time cash flow tracking. This helps companies enhance transparency, better manage risks, and meet increasingly stringent requirements from global investors and markets.
“Green finance” is now a focus of many banks. What is DBS’s competitive advantage in this area?
As a bank with deep roots in Asia, and with comprehensive and specialised coverage of 14 global industries, DBS possesses a nuanced understanding of the region's environmental challenges and opportunities, allowing for tailored sustainable finance solutions. Our experience in supporting large-scale renewable energy projects—such as geothermal and offshore wind in other Asian markets—can be readily adapted and applied to promising renewable energy market in Vietnam.
How does the bank ensure that capital truly flows into genuinely green projects and avoid the risk of greenwashing?
We utilise a comprehensive framework, primarily guided by international guidelines such as the Green Loan Principles (GLP), and various taxonomies such as the ASEAN Taxonomy and the Singapore-Asia Taxonomy. Every project must meet clearly defined technical criteria with quantitative thresholds, for example on emissions intensity or energy efficiency.
At the same time, DBS maintains a clear list of excluded sectors, such as fossil fuel infrastructure or environmentally harmful production models. This approach helps minimise greenwashing risks and ensures that environmental impacts are measurable and verifiable.
In the short to medium term, which sectors in Vietnam does DBS prioritise for green financing?
Renewable energy remains a major focus, including solar and wind power. Beyond that, we see strong potential in sustainable infrastructure, responsible agriculture, water management and supply chains.
In Vietnam, we have already participated in several flagship projects supporting the energy transition and Vietnam’s pathway to a low-carbon economy. These include being a key sustainable financing partner for SP Group and Sembcorp Industries in Vietnam, channelling syndicated green loans totalling USD 120 million to their joint ventures and subsidiaries.
We are also particularly attuned to the evolving landscape and have observed that the food and agriculture, technology and automotive sectors are progressively demonstrating a commitment and proactive approach to adopting more sustainable practices. These sectors are driving a demand for green financing solutions that we are well-equipped to provide and actively facilitate.
For example, we supported a global agricultural commodities company in implementing sustainable working capital financing, improving supply chain transparency and enhancing farmers’ incomes. In another instance, we supported an automotive client in expanding their distribution network for hybrid vehicles, enabling them to promote a shift towards sustainability.
Building on these efforts, we will continue to expand financing for energy transition projects, sustainable agriculture, and green technologies. Our goal is to become a strategic partner that provides not only capital, but also knowledge and advisory solutions, helping Vietnamese businesses build long-term resilience and integrate more deeply into global value chains.
Beyond supporting clients, how does DBS fulfil its own social responsibility and green commitments?
We start with our own operations. DBS’ Paper Reduction Programme, for instance, aims to reduce paper consumption by 5% annually across core markets. Carbon reduction and social responsibility criteria are also integrated into our procurement processes. Through the DBS Foundation initiatives and other philanthropic and corporate social responsibility activities, we focus on driving impact beyond banking to support and engage the communities we operate in.
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