The Japan International Cooperation Agency (JICA) signed a loan agreement with the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) on December 19, 2025, in Ha Noi, according to a press release by JICA. The agreement covers a $50 million USD loan under the Private Sector Investment Finance scheme. The financing targets the Rural Micro, Small, and Medium-sized Enterprise Support Program in the Socialist Republic of Vietnam.
The JICA loan is one component of a broader syndicated financing arrangement. The package also includes a $120 million USD facility from the Asian Development Bank (ADB) and a $80 million USD facility from commercial lenders. Together, these facilities form a coordinated financing structure directed at Vietnam’s MSME sector.
The project aims to support sustainable economic growth in Vietnam by providing long-term financing through BIDV to expand lending to micro, small, and medium-sized enterprises. A particular focus is placed on enhancing financial access for MSMEs in rural areas, where funding constraints remain a significant challenge. Of the $50 million USD JICA loan component, $30 million USD is dedicated to MSMEs in rural areas, while the remaining $20 million USD is allocated for general MSME lending.
The program is structured to channel all JICA funds through BIDV as the borrower. This approach positions BIDV as the primary intermediary for directing capital toward underserved enterprises across Vietnam’s rural regions. The allocation reflects a deliberate effort to address geographic disparities in access to finance within the country.
The project contributes to three UN Sustainable Development Goals: Goal 1 (No Poverty), Goal 2 (Zero Hunger), and Goal 17 (Partnerships for the Goals). By targeting rural MSMEs specifically, the program addresses both poverty reduction and food security alongside broader development partnership objectives. The agreement marks a concrete step in expanding financial inclusion for smaller enterprises operating outside Vietnam’s urban centers.
