| Project Detail |
Project Name BIDV Supporting Sustainable Agriculture and Expanding Access to Finance for Women-Owned Small and Medium-Sized Enterprises Lending Project Project Number 57338-001 Borrower / Company Joint Stock Commercial Bank for Investment and Development of Vietnam Senior unsecured loan to BIDV for $100m of ADB OCR proceeds - 80% ($80m) will support green agriculture; and 20% ($20m) to expand access to finance for women-owned SMEs (WSMEs); up to $20m of concessional loan from CANPA for green agriculture, and $100m of parallel loans from commercial lenders to be arranged by ADB for onlending to WSMEs and SMEs in rural areas. Objectives and Scope Viet Nams agriculture sector is highly susceptible to natural hazards such as flash floods, landslides, drought, water scarcity, and desertification. The project aims to mitigate these risks by promoting sustainable farming practices. Domestic banks, including BIDV, lack the expertise and capacity to finance sustainable agriculture projects. The project will help facilitate long-term finance for sustainable agriculture, enabling BIDV to support agricultural producers and energy-efficient models. SMEs and WSMEs are crucial to Viet Nams economy, but face significant challenges in accessing finance with an estimated gap of $23.6 billion. The project will address the financing gap and support BIDV in developing sustainable finance products tailored to WSMEs, enhancing womens inclusivity, and increasing financing for these enterprises. The project aims to enhance financial access for SMEs and WSMEs by mobilizing up to $150 million through a parallel loan arrangement, with ADB acting as the lead arranger and bookrunner. JICA and regional commercial banks will contribute funding, supporting loans to SMEs, including those in rural areas, while showcasing ADBs role in mobilizing private and public resources for sustainable development. The Government of Viet Nams green growth strategy to achieve economic prosperity and environmental sustainability, strive toward a green and carbon-neutral economy, and contribute to reducing global warming Viet Nams Strategy for Sustainable Agriculture and Rural Development for 2021-2030, with a vision extending to 2050 to focus on resilient, green, low-carbon agricultural transformation The Government of Viet Nams strategy to ensure individuals and enterprises particularly low-income and vulnerable people and micro, small, and medium-sized enterprises to have access to basic financial products and services in a convenient way and at affordable prices |
