Swedfund provides a loan of US$25 million to Vietnam Prosperity Joint Stock Commercial Bank (VP Bank). It aims to reach SMEs and create more jobs. This is Swedfund’s first direct investment in the financial sector in Vietnam.
The financing of SMEs in Vietnam is very important, given that they account for 98 percent of all companies in Vietnam and as much as 40 percent of the country’s GDP.
Swedfund’s loan of US$25 million is expected to support private sector growth, socio-economic development, and green financing in line with Swedfund’s goals and ambitions. In addition, the loan will give the Bank’s access to long-term financing, which is very much needed in a market characterized by a lack of liquidity for SMEs in particular.
Through the investment in the bank, Swedfund enables financing primarily for small and medium-sized companies and can thus contribute to the development of the country through financial inclusion and growth, said Jane Niedra, Head of Financial Inclusion at Swedfund.
Vietnam is one of the fastest growing countries in Southeast Asia that has an ambition to become a high-income country by 2045 and CO2-neutral by 2050. It is therefore important that the financial sector in the country is strengthened and that private companies have the opportunity to grow.
Swedfund’s loan is part of a syndicate with other international development financiers led by International Finance Corporation (IFC).
Founded in 1993, Vietnam Prosperity Joint Stock Commercial Bank is the eighth largest bank in Vietnam with US$24 billion in assets under management. The bank offers a full range of banking services, including to the SME segment. The bank reaches around 19 million customers through 250 branches as well as through its digital banking services.
