IFC helped SMEs, farmers, and women in business in FY2023

IFC’s total commitments in Vietnam were close to $1.9 billion in the financial year ending June 2023 (FY2023), of which $520 million was in long-term finance. Investment and advisory schemes from IFC addressed several core challenges in Vietnam–from climate change and food security to trade barriers and the housing finance gap–helping local companies recover from the pandemic and navigate challenging internal and external environments.

The majority of the long-term funding increased lending to thousands of small- and medium-sized enterprises, including women-owned businesses, and supported lower and middle-income home buyers. IFC’s investments in BaF Vietnam Agriculture, a top livestock producer, and in retail operator GS25 helped strengthen agribusiness value chains and improve food security in the country.

IFC also provided over $1.3 billion in short-term trade and supply chain finance to local companies in Vietnam, particularly garments and textiles firms and agribusiness suppliers, enabling them to continue importing and exporting goods while protecting about 100,000 jobs.

In line with the government’s twin goals of becoming a high-income country by 2045 and achieving net-zero emissions by 2050, climate and sustainability have become a bigger focus for IFC engagements in Vietnam. To date, IFC has committed over $900 million in long-term finance to support climate-related projects in the country.

“As businesses gradually recover from the pandemic during ongoing global financial crises, it’s the right time for the private sector to embark on a more sustainable pathway of development. This not only makes a lot of sense from a business perspective, but will also help make the private sector a driving force for the country’s transition to a low-carbon economic growth model,” said Thomas Jacobs, IFC country manager for Vietnam, Cambodia and Laos.

IFC’s advisory scheme in Vietnam has focused on facilitating markets for ecologically minded businesses and building capacity for local firms to grasp opportunities in the climate space. For example, IFC is supporting the relevant ministries to develop policies that incentivise green projects and encourage private sector participation in the voluntary carbon market. IFC is also advising manufacturers in heavy industries including steel, cement, and plastics to adopt decarbonisation solutions in their production processes.

In addition, IFC supports the State Securities Commission of Vietnam to promote the adoption of environmental, social and governance (ESG) standards and practices and to enforce ESG requirements among market players. This will help leverage the capital market to tackle climate change through green and sustainable finance.

Across the Asia-Pacific region, IFC committed a record $11 billion to 108 projects in FY2023, a 10 per cent on-year increase. This comprised $4.7 billion in long-term financing from its own account, $3.4 billion in mobilisation, and $2.9 billion in short-term trade and supply chain finance to facilitate trade flows.

IFC to support Vietnam's transition to a low-carbon economic growth model The International Finance Corporation (IFC) – a member of the World Bank Group – announced on May 11 that it will support Vietnam to transit to a low-carbon economic growth model.

IFC and BaF sign investment agreements On February 23, the strategic partnership announcement and signing ceremony of investment agreements between the International Finance Corporation (IFC) and BaF Vietnam Agriculture JSC took place at Vinpearl Landmark 81.

IFC investments to strengthen agribusiness value chain The International Finance Corporation (IFC) is initiating two new investments in Vietnam's retail and agribusiness sectors. These investments are aimed at strengthening the agribusiness value chain and ensuring food security, while stimulating job creation, and fostering competitiveness on the country.

IFC launches greenhouse gas emissions inventory and reporting manual Companies in Vietnam will find it easier to log and report their greenhouse gas (GHG) emissions thanks to the manual published by the International Finance Corporation (IFC).