The move marks an important milestone in the mutual commitment of the two entities towards promoting sustainable production and business.

The short-term trade finance credit is the first collaboration in green finance and other sustainable facilities between UOB Vietnam and Betrimex, Vietnam's leading manufacturer of coconut products.

To secure financing, Betrimex successfully navigated UOB Vietnam's rigorous green credit approval process, which focuses on assessing compliance with the ESG principles (environmental, social, and governance) of the enterprise.

The financing will enable Betrimex to import or purchase raw materials and domestic goods to produce with products of organic certifications, including Fairtrade certified products.

This certification ensures that manufacturers meet stringent requirements for social, environmental, and economic responsibility, particularly in areas such as safe working conditions, environmental protection, sustainable livelihoods, community development funds, and developing connections between buyers and farmers.

"The application of strict international standards such as Fairtrade will enable Betrimex to contribute more actively to the environment and community, especially in ensuring the livelihoods of coconut growers. This will promote the sustainable development of Vietnam's agriculture industry, creating greater economic value," said Lim Dyi Chang, head of Commercial Banking at UOB Vietnam. "UOB Vietnam is proud to accompany businesses on this important journey through sustainable trade finance activities. We are also actively building up our pipeline of customers who are looking for green financing to help in their sustainability transition."

Vietnam ranks fourth in the Asia-Pacific in terms of the total export value of coconut and coconut products, with export turnover surpassing $900 million in 2023, according to the General Department of Customs.

"The potential for the coconut industry remains vast as market demand for coconut products continues to rise, and there is still untapped value from coconut trees. With coconut trees now recognised as a key industrial crop, the coconut industry is expected to receive increased attention and support, leading to more sustainable development and new opportunities," said Dang Huynh Uc My, Betrimex chairman.

"Collaborating with UOB Vietnam through the green trade finance facility agreement marks a new milestone in Betrimex's journey towards sustainable development. We hope that Betrimex and UOB Vietnam will continue to accompany each other in achieving our common goal of promoting practices within the circular economy and sustainable development," she added.