ADB provides additional trade support for Viet Nam

The Asian Development Bank’s (ADB) Trade Finance Program (TFP) and Orient Commercial Bank (OCB) signed a $10 million loan agreement to further support trade in Viet Nam.

“We look forward to our continued partnership with OCB, especially with this additional trade finance assistance,” said Santosh Pokharel, TFP’s Relationship Manager for Viet Nam.

“ADB is one of our significant strategic partners. With this agreement, we continue to promote competitive financing and provide responsive services to our trade clients,” said Nguyen Dinh Tung, Chief Executive Officer of OCB.

Since 2010, TFP has supported $9.1 billion in trade through 7,624 transactions covering both guarantees and direct funding in Viet Nam, 72% of which is related to small and medium-sized enterprises. TFP works with 13 commercial banks in Vietnam.

OCB is one of the leading banks in Viet Nam, with a focus on supporting export and import activities. Effectiveness, sustainability, and risk management are top priorities of OCB. Applying international standards since September 2017, OCB is the first Vietnamese bank to announce the completion of implementing Basel II project. OCB is rated B2 by Moody’s, the highest rating among Viet Nam’s joint stock commercial banks.

TFP, backed by ADB’s AAA credit rating, provides guarantees and loans to over 200 partner banks to support trade, enabling more companies throughout Asia to engage in import and export activities. With dedicated trade finance specialists and a 24-hour response time, the program has established itself as a key partner in the international trade community, providing fast, reliable, and responsive support to fill gaps in the region’s most challenging markets. TFP complements its financial support with a regular series of workshops and seminars to increase knowledge and expertise in trade finance products and operations, risk management, and fraud prevention.

Since 2009, ADB’s TFP has supported more than 12,000 small and medium-sized businesses across developing Asia—through over 16,600 transactions valued at over $30 billion—in sectors ranging from commodities and capital goods to medical supplies and consumer goods. In 2017, TFP supported approximately $4.5 billion in trade through 3,505 transactions.

Original source: ADB
Published on 13 April 2018