ADB and BIDV on December 12 signed a 300-million-USD loan agreement to support the growth and productivity of SMEs in Vietnam (Source: VNA)Hanoi (VNA) – The Asian Development Bank (ADB) and the Joint StockCommercial Bank for Investment and Development of Vietnam (BIDV) on December 12signed a 300-million-USD loan agreement to support the growth and productivityof small- and medium-sized enterprises (SMEs) in Vietnam.
Thefacility is comprised of a senior unsecured A loan of 200 million USD providedby ADB and a B loan of 100 million USD provided by 12 commercial lenders,divided into a three-year tranche and a five-year tranche.
GeneralDirector of ADB’s Department of Private Sector Operations Michael Barrow saidthat ADB’s partnering with BIDV – the largest lender to the country’s SMEsector – will boost lending to smaller businesses, who often find it challengingto gain financial access.
BIDV’sefforts to make SME lending a key strategic priority is aligned with ongoingendeavours by ADB and the Vietnamese Government to improve access to financefor SMEs, thereby contributing to inclusive economic growth, he added.
Thefacility will support SMEs in Vietnam and also reaffirm BIDV’s partnership withADB in achieving poverty reduction, economic growth, regional integration, and environmentalprotection, said Chairman of BIDV’s Board of Directors Phan Duc Tu.
Heaffirmed that the loan symbolises the long-term cooperation between ADB andBIDV for sustainable development in Vietnam.
SMEsaccount for most of Vietnam’s businesses, contributing around half of totalemployment and 40 percent of gross domestic product. Despite their significantcontributions to the economy, SMEs still encounter numerous obstacles thatinhibit their economic potential, including lack of access to the financeneeded to expand.
In recentyears, BIDV has increasingly served the SME segment with positive results. Asof the end of June 2018, BIDV had 250,000 SME customers, almost 40 percent of allSME customers in Vietnam. Its lending portfolio to SMEs reached over 240trillion VND (approximately 10.4 billion USD), giving it the largest share ofSME lending among the banks nationwide.
Theloan will make ADB the first development finance institution to providelong-term lending to BIDV. ADB will work with BIDV to maximise the positive socialand environmental impacts of the assistance by implementing an environmentaland social management system.
Digitalfinance will be promoted through the introduction of new digital products toreach financially underserved populations in rural areas, including SMEs ownedby women. –VNA
Thefacility is comprised of a senior unsecured A loan of 200 million USD providedby ADB and a B loan of 100 million USD provided by 12 commercial lenders,divided into a three-year tranche and a five-year tranche.
GeneralDirector of ADB’s Department of Private Sector Operations Michael Barrow saidthat ADB’s partnering with BIDV – the largest lender to the country’s SMEsector – will boost lending to smaller businesses, who often find it challengingto gain financial access.
BIDV’sefforts to make SME lending a key strategic priority is aligned with ongoingendeavours by ADB and the Vietnamese Government to improve access to financefor SMEs, thereby contributing to inclusive economic growth, he added.
Thefacility will support SMEs in Vietnam and also reaffirm BIDV’s partnership withADB in achieving poverty reduction, economic growth, regional integration, and environmentalprotection, said Chairman of BIDV’s Board of Directors Phan Duc Tu.
Heaffirmed that the loan symbolises the long-term cooperation between ADB andBIDV for sustainable development in Vietnam.
SMEsaccount for most of Vietnam’s businesses, contributing around half of totalemployment and 40 percent of gross domestic product. Despite their significantcontributions to the economy, SMEs still encounter numerous obstacles thatinhibit their economic potential, including lack of access to the financeneeded to expand.
In recentyears, BIDV has increasingly served the SME segment with positive results. Asof the end of June 2018, BIDV had 250,000 SME customers, almost 40 percent of allSME customers in Vietnam. Its lending portfolio to SMEs reached over 240trillion VND (approximately 10.4 billion USD), giving it the largest share ofSME lending among the banks nationwide.
Theloan will make ADB the first development finance institution to providelong-term lending to BIDV. ADB will work with BIDV to maximise the positive socialand environmental impacts of the assistance by implementing an environmentaland social management system.
Digitalfinance will be promoted through the introduction of new digital products toreach financially underserved populations in rural areas, including SMEs ownedby women. –VNA
VNA
