F88 to pilot new loan product for female entrepreneurs

On December 22, F88 Business JSC (F88) announced that it had been selected as one of the investee companies of Lendable to receive technical assistance (TA) from Australian Development Investments (ADI).

The TA aims to facilitate various initiatives of F88 to enhance gender equity and inclusion within the company, resulting in improved women’s representation in leadership roles, gender responsive products and services, and strong business performance.

This marks the inaugural collaboration between F88 and international partners to implement initiatives aimed at benefiting both employees and customers, including entrepreneurs. To bolster these endeavours, ADI has approved A$43,000 ($29,300) for the Vietnam-based lender to design and test loan products that are suitable for female customers; and to undergo company-wide gender equality in business training and update policies to enable women employees to rise into middle and senior management.

Through the Mennonite Economic Development Associates (MEDA) application of Gender Equality Mainstreaming Framework, F88 was able to identify areas for improvement and propose a TA plan to the ADI.

The financing gap for women-led micro, small- and medium-sized enterprises in Vietnam is around $6.2 billion according to the International Finance Corporation.

Despite women owning 21 per cent of formal enterprises in the country with earnings similar to those led by men, they face unequal access to capital, attributed to barriers like insufficient financial records, limited collateral, and the absence of tailored financial products.

F88's new loan products are designed for women in Vietnam ages 20 to 55 who own small businesses like shops, cafés, and retail stores. Eligible borrowers must have a stable business location and an aspiration to expand their business.

The loan has a repayment period of up to 18 months and attractive low-interest rates. For F88, the objective of this new loan product goes beyond profit; it aims to offer a financial solution that enables women to make financial decisions for their small enterprises and improve their management and leadership skills. Women borrowers can also build their self-confidence and esteem, and assets towards financial independence.

“The Australian government is proud to deploy technical assistance through Australian Development Investments to support a Lendable portfolio company to create pathways for women entrepreneurs to access finance. Developing products that suit women business owners is not just the right thing to do, but the smart thing. I look forward to seeing how F88 and other lenders expand their client base by tailoring products for the thousands of women-owned businesses in Vietnam,” said Majdie Hordern, First Secretary Development Cooperation of the Australian Embassy in Hanoi.

In the upcoming months, F88 is set to roll out a series of training programmes for all employees aimed at raising gender sensitivity and preventing gender-based discrimination and harassment. There will be initiatives that go beyond job-specific skills, focusing on developing management skills and various soft skills.

F88 will further enhance the potential of its female managers and executives. In 2024, F88 will take steps to amend specific policies, providing needed interventions, such as mentoring, coaching and training, for female employees to advance in their careers.

“In the last five years, since attracting investments from international funds, F88 has prioritised promoting gender equality. At present, 53 per cent of F88's employees are women, and almost 70 per cent fall within the 20 to 30 age range. Women occupy 45 per cent of managerial positions and around 20 per cent of executive roles," said Phung Anh Tuan, CEO of F88.

"F88's female customer base is now at 30 per cent, experiencing a notable 234 per cent growth in 2022 compared to the previous year. Being a partner of Lendable and ADI for gender equality initiatives is a major achievement for F88. This recognition indicates that F88's past efforts in the right direction are acknowledged and valued by the community for its commitment to social responsibility.”

Lienda Kavindele, head of Impact and ESG at Lendable said, “Lendable is pleased to support F88 as they embark on the launch of their gender-focused financial product in Vietnam."

"Recognising the importance of empowering low-income women entrepreneurs, F88's initiatives align with our shared vision for inclusive economic growth. We commend F88 for not only addressing external needs but also implementing internal gender equality programmes, demonstrating a commitment to positive change in both business and the workplace."

It is hoped that the collaboration and collective partnerships between F88, Lendable, MEDA and ADI will lead to valuable and recognisable gains and business growth for F88 in its bid to promote greater gender equality and inclusion.

F88 targets to go public in 2024 to reach $1 billion valuation Phung Anh Tuan, chairman cum CEO of F88 – a major pawnshop chain in Vietnam – revealed that the company is aiming for a market valuation of roughly $1 billion if its plan to go public in 2024.

F88 raises $50 million in Series C funding round F88 Investment JSC announced that it successfully raised a Series C investment of $50 million. The two main investors in this round are Vietnam-Oman Investment Fund and the Mekong Enterprise Fund IV.

F88 receives $50 million credit via Lending Ark Asia Financial services chain F88 has raised new credit valued at $50 million through Lending Ark Asia.