IFC has awarded the “Best GTFP issuing bank in East Asia and the Pacific” to Vietnam International Commercial Joint Stock Bank
This award, aimed at honouring banks which obtained significant achievements under the global trade finance programme (GTFP), helps to expand and improve local banks’ trade finance capacity for exporters and importers in emerging markets, including Vietnam.
“The award recognises the bank’s (VIB) efforts in covering payment risk in granting trade financing to Vietnam’s small- and medium-sized enterprises, many of which have been struggling with a liquidity shortage in a tough economy,” said Simon Andrews, IFC regional manager. “Our continued support to VIB underscores IFC’s long-term commitment to fostering the development of the Vietnamese financial market and individual banks.”
Along with this event, IFC has also expanded a trade finance line for VIB to $80 million under GTFP. Accordingly, after only more than a year of joining the programme, this is the third time VIB has had its trade finance line expanded. Previously, IFC increased the trade line for VIB from $30 million to $50 million in February 2012.
Until November 2012, the total disbursement amount for VIB via IFC’s guarantees reached $125 million. Thanks to this, the bank has financed hundreds of local importers and exporters in different sectors.
“Trade line expansion and the award well reflect IFC’s recognition of the achievements and success which we have obtained in financing the import and export sector in general and in the GTFP in particular during the past years. This is the basis for VIB to continue further improving our capacity to make better contributions to development of customers and enhance our reputation in the international market,” said Duong Thi Mai Hoa, chief executive officer of VIB.
In addition to IFC, VIB has also worked closely with Asian Development Bank (ADB) and the Netherlands Development Finance Company (FMO) under the trade finance programme (TFP). In 2010, VIB was rated by ADB as a bank which operated positively and efficiently among the participating banks in the TFP in Asia.
Since its inception in 2005, the GTFP has issued more than 13,000 guarantees totaling $20 billion to banks for trade-related payment obligations of their financial-institution clients in emerging markets. In fiscal year 2012, IFC provided $2.9 billion to support trade in the world’s poorest countries, and 79 per cent of all guarantees went to small and medium enterprises.