Press release -
$25 million investment in Vietnam to create jobs
Swedfund provides a loan of USD 25 million to Vietnam Prosperity Joint Stock Commercial Bank (VP Bank). It aims to reach small and medium-sized companies and create more jobs and is Swedfund's first direct investment in the financial sector in Vietnam.
The financing of small and medium-sized enterprises in Vietnam is very important, given that they account for 98 per cent of all companies in Vietnam and as much as 40 per cent of the country's GDP.
Swedfund's loan of USD 25 million is expected to support private sector growth, socio-economic development, and green financing in line with Swedfund's goals and ambitions. In addition, the loan will give the Bank’s access to long-term financing, which is very much needed in a market characterized by a lack of liquidity for SMEs in particular.
- Through the investment in the bank, Swedfund enables financing primarily for small and medium-sized companies and can thus contribute to the development of the country through financial inclusion and growth, says Jane Niedra, Head of Financial Inclusion at Swedfund.
Vietnam is one of the fastest growing countries in Southeast Asia that has an ambition to become a high-income country by 2045 and CO2-neutral by 2050. It is therefore important that the financial sector in the country is strengthened and that private companies have the opportunity to grow.
Swedfund's loan is part of a syndicate with other international development financiers led by International Finance Corporation (IFC).
About Vietnam Prosperity Bank
Founded in 1993, Vietnam Prosperity Joint Stock Commercial Bank (VP Bank) is the eighth largest bank in Vietnam with USD 24 billion in assets under management. VP Bank is a systemically important bank listed on the Ho Chi Minh Stock Exchange and is headquartered in Hanoi. The bank offers a full range of banking services, including to the SME segment. The bank reaches around 19 million customers through 250 branches as well as through its digital banking service Network.
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About Swedfund
Swedfund is Sweden's development finance institution with the mission to contribute to poverty reduction through sustainable investments in developing countries. Our investments in the private sector contribute to a growing number of jobs offering decent working conditions and increases access to essential products and services like electricity and healthcare. Climate and gender are themes that permeates our investment process.
Swedfund invests in energy & climate, financial inclusion and increased access to capital for micro, small and medium-sized companies as well as healthcare and digitalization.
We are part of Swedish development corporation, and we measure and report all our results. As a state-owned company, Swedfund is managed by the Ministry of Finance. We are financed through reflows from the portfolio and capital injections from the development assistance budget. The return from the portfolio finances our operations and we reinvest reflows from our portfolio in new projects, i.e. we recycle our capital injections.
For more information: please visit www.swedfund.se/en| www.edfi.eu
