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Signed on December 19, the package targets women-owned small and medium-sized enterprises (SMEs) and includes $100 million from ADB’s ordinary capital resources, $20 million from the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA), a $50 million syndicated parallel loan from the Japan International Cooperation Agency (JICA), and an $80 million syndicated commercial parallel loan from Cathay United Bank, CTBC Bank Singapore Branch, and Taipei Fubon Commercial Bank, with ADB acting as mandated lead arranger and bookrunner to mobilise private capital into the SME sector.
“This transaction represents an important milestone in ADB’s partnership with BIDV and in encouraging 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 for farmers and agribusinesses, especially women entrepreneurs, while supporting Vietnam’s transition towards a green and resilient economy.”
Agriculture plays a vital role in Vietnam’s economy, employing about 45 per cent of the labour force. However, the sector faces challenges from fragmented production, limited technology adoption, and increasing climate risks. As Vietnam pursues its goal of becoming a top 15 global agricultural exporter by 2030, substantial investment – estimated at nearly $100 billion –will be needed to enhance climate resilience, reduce emissions, and maintain competitiveness.
The facility 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 utilise green and inclusive lending, enhance credit assessment for agriculture, and expand access to finance for WSMEs in rural areas.
“This partnership demonstrates our shared commitment to advancing Vietnam’s development goals,” said BIDV executive vice president Pham Vu Thien Nga. "Through the medium- and long-Term facilities with ADB, JICA and the commercial lenders, and together with concessional funding from CANPA, 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 inclusive and resilient economic growth of Vietnam’s economy."
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 – including female-run SMEs – to identify and capitalise on sustainable agriculture investment opportunities, and raise awareness of sustainable agriculture finance.
Through the Women Entrepreneurs Finance Initiative grant, the scheme will support the development of gender-responsive financial products, implementation of a sex-disaggregated management information system, and a gender assessment of BIDV’s corporate policies and services.
Established in 2024, CANPA is a trust fund managed by ADB, supported by a commitment of Can$360 million (approximately $261 million) from the government of Canada. The fund builds on the success of the Canadian Climate Fund for the Private Sector in Asia II and its predecessor CFPS. CANPA supports private-sector projects in Asia-Pacific that focus on climate and nature-based solutions, while also promoting gender equality.
Founded in 1957, BIDV is the largest bank in Vietnam in terms of total assets and is listed on the Ho Chi Minh Stock Exchange, with multiple subsidiaries, affiliates, and joint ventures. In 2019, KEB Hana Bank acquired a 15 per cent strategic stake in BIDV.
