The Asian Development Bank (ADB) has doled out a $25 million loan to Tien Phong Commercial Joint Stock Bank (TPB) to finance women-led small and medium-sized enterprises (WSMEs) in Vietnam, according to an announcement.
The project is also co-financed by DEG, the investment arm of German state-owned development bank KFW (DEG).
The funding, which is accompanied by a $750,000 technical assistance 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 analyze the underserved WSME market.
The grant is funded by the Women Entrepreneurs Finance Initiative (We-Fi). We-Fi is a collaborative partnership among 14 governments, 8 multilateral development banks, and other public and private sector stakeholders, hosted by the World Bank Group.
“We are very pleased to partner with TPB and We-Fi to support WSMEs, which are important channels to increase women’s participation in Viet Nam’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% of the country’s employment and generating 40% of gross domestic product. But their access to finance is still a challenge, with only 37% of WSMEs able to obtain loans from banks, according to a 2017 study.
In 2019, ADB received $20.19 million from the Women Entrepreneurs Finance Initiative (We-Fi) to support women-led small and medium-sized enterprises (WSMEs) in Vietnam and the Pacific.
Last October, ADB provided a $186 million loan to renewable energy firm Phu Yen TTP Joint Stock Company to develop a 257 megawatt (MW) solar power plant in southern Vietnam, marking the country’s first certified green loan.
Earlier, the bank doled out a $160.5 million loan to Dau Tieng Tay Ninh Energy Joint Stock Company to support its B.Grimm Vietnam solar power project.
Earlier this month, DEG, the investment arm of German state-owned development bank KFW, extended a $17.5-million loan to Nova Consumer Group, a Vietnam-based manufacturer of feed and medicine for farm animals.