The grant will improve Tien Phong Commercial Joint Stock Bank's capacity to lend to women-owned and led small and medium-sized enterprises, hire staff, and promote its services to female borrowers.

The Asian Development Bank (ADB) signed a US$25 million loan with Tien Phong Commercial Joint Stock Bank (TPB) to expand access to finance of women-owned and led small and medium-sized enterprises (WSMEs) in Vietnam.
Electronic production at Katolec Vietnam in Quang Minh Industrial Park, Me Linh District. Photo: Pham Hung |
The project is also co-financed by DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG) for $25 million.
The loan is accompanied by a $750,000 technical assistance grant to help TPB better meet the needs of WSMEs. The 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 are very pleased to partner with TPB and We-Fi to support WSMEs, which are important channels to increase women’s participation in Vietnam'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.
“ADB, DEG, and TPB’s goals are uniquely aligned especially in our mutual support of WSMEs,” said TPB’s Chief Executive Officer Nguyen Hung. “We will continue to leverage our strength in digital banking to tailor products and services for WSMEs and plan to increase supply chain financing and support services, liquidity, and digital banking products to reach underserved customers.”
TPB is one of the leading joint-stock banks in Vietnam. It has robust digital platforms that help meet the needs of its retail and SME customers by offering innovative and customized products.
We-Fi is a collaborative partnership among 14 governments, eight multilateral development banks, and other public and private sector stakeholders, hosted by the World Bank Group.
Other News
- Hanoi eyes comprehensive development in 2023: Mayor
- EU, Germany fund to enhance public financial management in Vietnam
- Vietnam proposed 30% cut in land lease in 2023
- Vietnam's foreign reserves to return to US$100-billion mark by year-end
- Vietnam’s 2023 GDP growth forecast at 7.2%: Standard Chartered
- Gold of high interest for Vietnamese investors to combat inflation
- Vietnam's finance ministry waives taxes worth over US$2 billion in 2022
- Vietnam's credit growth expands nearly 13% in 2022
- C.bank urges tightened credit management in high-risk fields
- Vietnam banks' ratings on positive trajectory: Fitch
Trending
-
Vietnam spends US$9 billion on oil imports in 2022
-
Hanoi makes people and businesses the center of digitalization
-
Tet in the eyes of foreigners in Hanoi
-
Hanoians show passion for flowers
-
Vietnam’s tourism forecast to strongly rebound in five years
-
Admiring 2,023 feline statuettes made by Hanoi artist
-
Overseas Vietnamese eagerly await Tet and spring
-
Switzerland to support Vietnam’s transition to green economy
-
Foreign ambassadors experience Vietnamese Tet in Duong Lam Village