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| The ADB-BIDV package will provide sub-loans to agribusinesses engaged in sustainable agricultural production, climate adaptation, and resource efficiency. (Illustrative photo: VNA) |
Hanoi (VNA) – The Asian Development Bank (ADB) and the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) have signed a 250 million USD syndicated financing package to promote sustainable agriculture in Vietnam and support women-owned small- and medium-sized enterprises (WSMEs).
According to ADB, to realise its goal of becoming one of the world’s top 15 agricultural exporters by 2030, Vietnam will need substantial capital, estimated at nearly 100 billion USD. The newly signed 250 million USD loan package represents part of the solution to this challenge.
The financing package is a joint effort by multiple international institutions, with ADB acting as the lead arranger. It comprises 100 million USD from ADB’s ordinary capital resources; 20 million USD from the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA); a 50 million USD syndicated parallel loan from Japan International Cooperation Agency; and a 80 million USD syndicated commercial parallel loan from several other banks.
The package will provide sub-loans to agribusinesses engaged in sustainable agricultural production, climate adaptation, and resource efficiency. It will also help BIDV develop new financial products that promote green and inclusive lending, enhance credit assessment for agriculture, and expand access to finance for WSMEs in rural areas.
The financing is accompanied by technical assistance that will strengthen BIDV’s capacity in environmental and risk management. It will enhance the skills of BIDV staff and clients to identify and capitalise on sustainable agriculture investment opportunities, and raise awareness of sustainable agriculture finance.
“This transaction represents an important milestone in ADB’s partnership with BIDV and in promoting climate-smart, inclusive growth in Vietnam’s agriculture sector,” said ADB Country Director for Vietnam Shantanu Chakraborty. “By blending commercial and concessional capital and providing technical assistance, this project will help strengthen BIDV’s capacity to serve farmers and agribusinesses, especially women entrepreneurs, while supporting Vietnam’s transition toward a green and resilient economy.”
BIDV Executive Vice President Pham Vu Thien Nga said BIDV will strengthen its support for customers in developing sustainable agricultural models and expand access to finance for women and business owners in rural areas, thereby contributing to the Vietnamese economy’s inclusive and resilient economic growth./.
