The Asian Development Bank (ADB) signed a US$25 million loan with Tien Phong Commercial Joint Stock Bank (TPB) to expand access to finance of women-owned and led small and medium-sized enterprises (WSMEs) in Vietnam.
|The loan is accompanied by a $750,000 technical assistance grant to help TPB better meet the needs of WSMEs. - Photo nguoiduatin.vn |
The project is also co-financed by DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG) for $25 million.
The loan is accompanied by a $750,000 technical assistance grant to help TPB better meet the needs of WSMEs. The grant will be used to build TPB’s capacity to lend to WSMEs, hire staff, and promote its services to female borrowers. It will also enable TPB to use digital systems to analyse the underserved WSME market. The grant is funded by the Women Entrepreneurs Finance Initiative (We-Fi).
“We are very pleased to partner with TPB and We-Fi to support WSMEs, which are important channels to increase women’s participation in Vietnam's economic development,” said ADB’s Director General for Private Sector Operations Suzanne Gaboury.
“COVID-19 has severely affected many businesses, and initiatives such as this loan and grant will support particularly underserved female borrowers by helping TPB develop systems and procedures to improve their access to finance.”
As of 2018, the majority of businesses in Vietnam are classified as small and medium-sized enterprises, supporting 38 per cent of the country’s employment and generating 40 per cent of gross domestic product. But their access to finance is still a challenge, with only 37 per cent of WSMEs able to obtain loans from banks, according to a 2017 study.
“ADB, DEG, and TPB’s goals are uniquely aligned especially in our mutual support of WSMEs,” said TPB’s Chief Executive Officer Nguyen Hung.
“We will continue to leverage our strength in digital banking to tailor products and services for WSMEs and plan to increase supply chain financing and support services, liquidity, and digital banking products to reach underserved customers.”
TPB is one of the leading joint-stock banks in Vietnam. It has robust digital platforms that help meet the needs of its retail and SME customers by offering innovative and customised products.
We-Fi is a collaborative partnership among 14 governments, eight multilateral development banks, and other public and private sector stakeholders, hosted by the World Bank Group.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members – 49 from the region.