The latest developments in the sustainability space, a broad term that can include areas such as protection of rights, labour standards, governance and ethical dilemmas in investing, as well as environmental protection.

Finnfund, EVF
Finland-based Finnfund, a development financier and impact investor, has signed a $15 million senior loan agreement with Vietnam’s EVF General Finance, a non-bank financial institution, which lends to small and medium-sized enterprises.

By expanding access to finance for underserved businesses, EVF, which was established on 2008, is contributing to financial inclusion and sustainable economic growth in Vietnam. 

"We are delighted to support EVF, a strong partner for expanding access to finance for small and medium-sized enterprises in Vietnam, particularly women-led businesses,” Antti Partanen, investment manager at Finnfund, said. “Through this financing, we can support both financial inclusion and inclusive economic growth in Vietnam.”

Each year, Finnfund deploys between €200 ($226.9) million to €300 million into 20 to 30 companies in developing countries. It concentrates on digital infrastructure and solutions, clean energy, forestry, agriculture, and providing funding for SMEs through financial institutions. Finnfund’s investments, commitments, and investment decisions total about €1.2 billion. The company has about 100 employees based in Helsinki and Nairobi.

"Vietnam has set ambitious climate targets and will require significant investment to support its transition to a low-carbon economy. EVF has a growing green lending portfolio and is well positioned to finance businesses investing in renewable energy and energy-efficiency solutions. We believe the company can play an important role in channelling more financing towards sustainable growth in Vietnam," Partanen added.

Vietnam is continuing to attract international capital. Earlier this week, for example, Citigroup and Ho Chi Minh City Development Joint Stock Commercial Bank, aka HDBank, said they had agreed to expand banking and financial services under a new pact.

The Southeast Asian country's economic performance has risen to emerging market status, along with the rise of an affluent middle class which has piqued the interest of wealth managers and private banks. Banks, which are adding to teams that include Vietnam coverage, include HSBC and Switzerland's Bordier & Cie, for example.