The Duy Tan Plastics Corporation and HSBC Vietnam on July 8 signed a green credit deal to build a factory producing renewable plastics.
The first phase of Duy Tan’s factory project located in Long An Province will require a total investment of US$63 million. It is expected to recycle used plastics bottles into plastic raw materials for the further production of plastic bottles.
Le Anh, head of Marketing of Duy Tan, said the factory is scheduled to launch the products in the local market in the fourth quarter of the year.
Plastic grains produced from the used plastic bottles will secure certification from the U.S. Food and Drug Administration, he added.
This is the first green credit from HSBC to a Vietnamese company, sourced from 100 billion USD the bank has committed to sustainable investment around the world to 2025.
Stephanie Betant, Country Head of Wholesale Banking at HSBC Vietnam, said the deal between HSBC and Duy Tan aims to reach the shared goal of sustainable financial growth in Vietnam.
Le Anh, Marketing Director at Duy Tan, said the factory, which will have an estimated capacity of producing 100,000 tonnes of products per year, will be the first in Vietnam to apply “bottles to bottles” renewable technology.
The green loan is being implemented in tandem with the national strategy on green growth of the Vietnamese Government and the green bank development plan of the State Bank of Vietnam.