The project is also co-financed with USD 25 million from Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG).
The loan is accompanied by a USD 750,000 technical assistance grant to help TPB better meet the needs of WSMEs. The grant will be used to build TPB’s capacity to provide loans to WSMEs, hire staff, and promote its services to female borrowers.
In addition, it will enable TPB to use digital systems to analyze the underserved WSME market. The grant is funded by the Women Entrepreneurs Finance Initiative (We-Fi).
Director General for Private Sector Operations Suzanne Gaboury said, “We are very pleased to partner with TPB and We-Fi to support WSMEs, which are important channels to increase women’s participation in Vietnam's economic development.”
She added that the COVID-19 pandemic has severely affected many businesses, and initiatives such as this loan and grant will particularly support underserved female borrowers by helping TPB develop systems and procedures to improve their access to finance.
As of 2018, the majority of businesses in Vietnam are classified as small- and medium-sized enterprises, contributing 38% to the country’s employment and 40% to the GDP. However, according to a study conducted in 2017, their access to finance is still a challenge, with only 37% of WSMEs being able to obtain loans from banks.
According to TPB’s Chief Executive Officer Nguyen Hung, ADB, DEG, and TPB’s goals are uniquely aligned, especially in their mutual support of WSMEs. He added that the three units will continue to leverage their strength in digital banking to tailor products and services for WSMEs and plan to increase financing supply chain and support services, liquidity, and digital banking products to reach underserved customers.”
Translated by Tran Hoai