The Asian Development Bank (ADB) and the Joint Stock Commercial Bank for Investment and Development of Viet Nam have signed a $250 million syndicated finance package to support sustainable and climate-resilient agriculture and expand access to finance for women-owned small and medium-sized enterprises in Viet Nam, ADB announced.
The financing comprises $100 million from ADB’s ordinary capital resources, $20 million from the Canadian Climate and Nature Fund for the Private Sector in Asia, a $50 million syndicated parallel loan from Japan International Cooperation Agency, and an $80 million syndicated commercial parallel loan from Cathay United Bank, CTBC Bank Singapore Branch, and Taipei Fubon Commercial Bank. ADB structured, syndicated, and arranged the entire debt package as the mandated lead arranger and bookrunner, mobilizing private capital into Viet Nam’s SME sector.
“This transaction represents an important milestone in ADB’s partnership with BIDV and in promoting climate-smart, inclusive growth in Viet Nam’s agriculture sector,” said Shantanu Chakraborty, ADB Country Director for Viet Nam. “By blending commercial and concessional capital and providing technical assistance, this project will help strengthen BIDV’s capacity to serve farmers and agribusinesses, especially women entrepreneurs, while supporting Viet Nam’s transition toward a green and resilient economy.”
Agriculture employs about 45% of Viet Nam’s labor force but faces challenges from fragmented production, limited technology adoption, and increasing climate risks. As Viet Nam pursues its goal of becoming a top 15 global agricultural exporter by 2030, nearly $100 billion in investment 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 promote green and inclusive lending, enhance credit assessment for agriculture, and expand access to finance for women-owned SMEs in rural areas.
“This partnership demonstrates our shared commitment to advancing Viet Nam’s development goals,” said Pham Vu Thien Nga, BIDV Executive Vice President. “Through the Medium and Long Term Facilities with ADB, JICA and the Commercial Lenders, 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.”
The financing includes technical assistance to strengthen BIDV’s capacity in environmental and risk management. It will enhance the skills of BIDV staff and clients—including women-owned SMEs—to identify and capitalize on sustainable agriculture investment opportunities and raise awareness of sustainable agriculture finance. Through the Women Entrepreneurs Finance Initiative grant, the project 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 Can$360 million from the Government of Canada. The fund builds on the Canadian Climate Fund for the Private Sector in Asia II and its predecessor, supporting private-sector projects in Asia and the Pacific that focus on climate and nature-based solutions while promoting gender equality.
Founded in 1957, BIDV is Viet Nam’s largest bank by 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% strategic stake in BIDV.
