Planet
This transaction will advance circular economy principles by scaling a resource-efficient pallet leasing model, reducing reliance on virgin plastics, cutting carbon emissions, and enabling manufacturing from secondary inputs.
| Company | PIDG |
| Sector | Manufacturing |
| Country | Viet Nam |
| Total Project Cost | USD 20 million |
| PIDG Commitment |
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| Dates of PIDG involvement |
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Viet Nam is a bank-centred economy with around 70 per cent of capital needed in the economy being financed by the banking system. The value of green bond issuances lags behind other Southeast Asian countries, with green bonds accounting for less than one per cent of the total bonds issued in the first half of 2025. The bond market needs development to support various sustainable infrastructure needs, including increasing manufacturing capacity.
PIDG, through GuarantCo, provided a payment default guarantee to support Binh Thuan Plastic Group Joint Stock Company (BPG)’s landmark seven-year bond issuance programme. This transaction represents Viet Nam’s first-ever credit-enhanced, certified green bond in the plastics sector, setting a new benchmark for climate-aligned financing and accelerating the country’s transition towards a circular economy.
Proceeds from an initial tranche will be deployed into the development of BPG’s new manufacturing facility in the Hung Yen Industrial Zone and into its recycled plastic pallet investment programme for leasing purposes. These investments are designed to scale sustainable manufacturing capacity and expand the circular use of recycled plastic materials across Viet Nam’s logistics sector.
This transaction will advance circular economy principles by scaling a resource-efficient pallet leasing model, reducing reliance on virgin plastics, cutting carbon emissions, and enabling manufacturing from secondary inputs.
This transaction represents Viet Nam’s first-ever credit-enhanced, certified green bond in the plastics sector, setting a new benchmark for climate-aligned financing and accelerating the country’s transition towards a circular economy.
Mobilising domestic institutional capital from Vietnamese insurance funds alongside sponsor financing, strengthening partnerships for sustainable development. Along with supporting an innovative green business model and catalysing the continued growth of Viet Nam’s green bond market.
Over 35 per cent of the new jobs created in construction and operation are expected to be for women.
