HO CHI MINH CITY, VIETNAM - Media OutReach - 12 May 2022 - On May 11, IFC and Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) have signed a Memorandum of Understanding (MoU) to become strategic partners, supporting small and medium enterprises (SMEs) to scale up finance and participate in the global supply chains, including financing the high-tech agricultural chain.
The event took place on the occasion of the visit to the United States of America of the Prime Minister of the Socialist Republic of Vietnam Pham Minh Chinh, who leading the Vietnamese delegation to attend the US – ASEAN Special Summit in Washington D.C (USA).
This cooperation is expected to help HDBank build its supply chain finance (SCF) portfolio of USD1 billion in the next 3 years; Accordingly growing its SCF portfolio – currently active in construction materials, agribusinesses sector, FMCG as well as supporting industries and downstream petroleum distribution.
IFC will assist HDBank to design an SCF strategy for agricultural sector, broaden its SCF products – especially supplier and distributor financing – and bring on board anchor firms along with their suppliers and distributors, among others.
"SCF that links buyers, suppliers, and financial institutions will efficiently support the trade cycles. IFC's timely support will enable local businesses to leverage emerging trade opportunities and improve their linkages to formal supply chains, contributing to Vietnam's economic growth," said Mr. Pham Quoc Thanh, HDBank's CEO.
"Small and medium enterprises are the backbone of the economy and being essential to Vietnam's goal of becoming a manufacturing hub in the region", said Stephanie von Friedeburg, Senior Vice President, Operations at IFC. "IFC's supports to domestic financial institutions as HDBank will contribute to increase SMEs' linkages with the global supply chains and open up the opportunities for development and job creation."
Previously, on April 14, 2022, IFC granted HDBank a trade finance limit of USD 40 million within the framework of the Global Trade Finance Program (GTFP) to enhance payment risk guarantee capacity in trade finance for domestic enterprises, mainly SMEs.
In 2021, IFC provided a long-term loan of USD70 million to HDBank to support renewable energy business. IFC also subscribed USD95 million to international convertible bond issued by HDBank to support increased lending to micro, small and medium enterprises. Currently, the total value of commitments and cooperation between IFC and HDBank has reached more than USD200 million and continuously increasing and developing in the coming time.
The issuer is solely responsible for the content of this announcement.