2024 marked a transformative year for MUFG in Vietnam, characterised by dynamic innovation, a steadfast commitment to sustainability, and robust international engagements - all of which bolster economic resilience, contributing to the broader economic sustainability of cities.
Recognising the crucial role foreign banks play in helping businesses in Vietnam navigate the fast-changing business landscape, MUFG has advanced trade finance and facilitated capital flows. These efforts have not only reinforced MUFG’s position as one of the leading financial institutions in sustainable finance but also solidified its commitment to fostering the country’s long-term growth.
MUFG’s presence in Vietnam spans a century dating back to 1920, when its predecessor Yokohama Specie Bank established the first Japanese bank in Ho Chi Minh City. In appreciation of the support MUFG has received in Vietnam, the bank gathered 200 guests for an evening of gratitude, which celebrated bank’s century-long journey in Vietnam, acknowledging MUFG’s rich history and its successes, while reaffirming ambitions to build a shared, sustainable future for both the bank and the country.
ESG footprints with diverse products
MUFG concluded 2024 on a high note, mirroring Vietnam's adept navigation through the cyclical storm of slower-than-expected global growth. MUFG in Vietnam was poised to meet the first target of its mid-term business plan and, as it approaches 2025, is poised to accelerate its progress to establish itself as the leading foreign bank in Vietnam by the end of FY2026.
In alignment with the country’s transition to a low-carbon economy, MUFG has strategically embraced sustainability as a core business theme, launching numerous initiatives to showcase the bank’s expertise in sustainable finance.
Recognising the market's need for blended and sustainable financing solutions and the increasing pressure on corporations to advance their sustainability journeys, MUFG has developed a comprehensive suite of innovative financial products that integrates environmental, social, and governance (ESG) factors, including deposits, loans, derivatives, and advisory services.
As one of the pioneering foreign banks to introduce innovative solutions including sustainable deposits for social projects and green deposits, MUFG successfully attracted over $175 million in total transaction volume in 2024. The bank also witnessed a significant increase in successfully executed ESG-driven deals - such as social loans, green loans, and green trade finance - with corporate clients, from a spectrum of industries.
In December, MUFG closed its first sustainability-linked loan with a well-established player in the logistics industry. To further support clients in their decarbonisation management, MUFG also partnered with Zeroboard to help companies calculate and visualise their greenhouse gas emissions across operations and supply chains.
Sustainability advocacy and policy engagement
Striving to be the banking partner of choice within the sustainability ecosystem, MUFG hosted its signature sustainability event, MUFG NOW in Hanoi in May 2024. More than 150 business leaders, industry experts, and policymakers assembled to discuss critical ESG issues and collective responses to the challenges and opportunities of sustainable development in the Asia-Pacific region. This relentless effort and proactive approach underscore MUFG’s position as one of the leading sustainable finance banks in Vietnam and the region.
Furthermore, MUFG has taken an active role in policy engagement by working closely with regulatory and industry stakeholders to establish policies that tackle sustainability issues. Its partnership with the Institute of Strategy and Policy on Natural Resources and Environment further solidifies the bank’s stance.
As set out in the partnership, the two entities will collaborate to advance sustainability development and promote a circular economy via knowledge sharing and render of technical assistance in order to achieve the national goal of net-zero emissions by 2050.
In 2024, MUFG assumed the chairmanship of the Banking Working Group under the Vietnam Business Forum - a high-level policy dialogue platform between foreign credit institutions and government agencies in Vietnam - marking the first instance of a non-US/EU bank chairing the group. This achievement is further testament to the exceptional efforts MUFG has made in supporting the development of Vietnam’s banking sector over the years.
Over the course of the chairmanship, MUFG has been working closely with various departments of the State Bank of Vietnam and government ministries on critical regulations.
MUFG has also held the chairmanship of the Japanese Chamber of Commerce in Ho Chi Minh City, representing over 1,000 member companies, and serving as a vital voice for the Japanese business community in the city, since April 2024. The bank’s focus has been on enhancing the investment environment and creating a more favorable climate for investors.
To that end, MUFG has fostered connections between Japanese and Vietnamese businesses and engaged in dialogue with Vietnamese authorities to address investor challenges while aligning the interests of Japanese companies with local communities. MUFG continues to support the strategic bilateral relations between the two countries, contributing to the socioeconomic development of Ho Chi Minh City.
Serving the community
With a firm belief that ESG is a crucial factor for achieving sustainable growth, MUFG has engaged in numerous projects that reflect its genuine commitment to these issues. In 2024, it partnered with the Ministry of Natural Resources and Environment to organise MUFG Green Day, during which bank employees planted 500 trees in Hanoi and Long An province, aiding local reforestation and environmental preservation efforts.
Embracing the national spirit of unity during September’s Typhoon Yagi, MUFG donated VND1 billion ($41,600) to the Vietnam Fatherland Front to support relief activities and reconstruction efforts, reaffirming our dedication to empowering a brighter future for both the environment and society.
Prestigious recognition for relentless efforts
MUFG has collaborated with various Vietnamese government agencies to promote initiatives that foster a sustainable, vibrant, and resilient society. Complementing the bank’s community and business efforts are its dedication to information and knowledge sharing and technical assistance in support of Vietnam’s ambition to achieve decarbonisation by 2050.
Notably, MUFG is the only foreign bank to have received the prestigious recognition as one of the Top 10 Sustainable Businesses in Vietnam in the field of Trade and Services, on the Corporate Sustainability Index 2024 published by The Vietnam Business Council for Sustainable Development, under the leadership of Vietnam Chamber of Commerce and Industry.
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MUFG staff planted 300 trees in Long An province in October |
Moving forward in 2025
Great change and transformation awaits Vietnam’s banking industry in 2025, with further innovation evolutions in sustainable finance, new ways of facilitating foreign investment, and collaboration among local and foreign banks in store.
The banking sector will also face stronger calls from stakeholders for greater compliance and risk management, while navigating intensifying competition that could reshape Vietnam’s business landscape.
Looking ahead, as one of Vietnam’s leading foreign banks and trusted partner of choice for corporates, MUFG is determined to continuously innovate and invest in sustainability, enhance its relationship with the Vietnamese government, and seize the right opportunities to create long-lasting impact for its clients, partners and colleagues in Vietnam.
Source: VIR
