Sustainable Investing Takes Root in Vietnam

The United Vietnam ESG Equity Fund (UVEEF), launched in November 2022 by UOB Asset Management Vietnam, is Vietnam's first open-ended fund incorporating ESG principles for stock selection. The fund has experienced significant growth, with its net asset value increasing 5.5 times as of April 2024. This success, including a 17.7% surge in net asset value per fund certificate in 2023 amidst challenging economic conditions, demonstrates the growing appeal of ESG-focused investments in Vietnam. The UVEEF employs a proprietary ESG rating system to evaluate companies across various factors. These factors include: greenhouse gas emissions, energy and water usage, waste management, labor practices, community engagement, and board diversity. The fund aims to invest in companies that demonstrate both sustainability and growth potential by combining these ESG criteria with financial performance metrics.