JICA, BIDV announce 50 million USD loan to support rural MSMEs

The program is part of JICA’s Private Sector Investment Finance initiative.

The announcement follows the signing of the loan agreement in late 2025, marking a new milestone in financial cooperation between the two sides. The JICA loan forms part of a 120 million USD syndicated financing package, co-arranged with the Asian Development Bank (ADB) and other commercial banks.

JICA, BIDV announce 50 million USD loan to support rural MSMEs. (Photo for illustration)

A key highlight of the program is its targeted capital allocation to address limited access to finance in rural areas. Under the agreed structure, BIDV will earmark 30 million USD from the JICA loan specifically for rural MSMEs, while the remaining 20 million USD will support MSMEs more broadly.

The focus on agriculture - the backbone of the rural economy - would help farmers and small business owners enhance productivity, create local employment, and improve sustainable incomes.

Senior representatives from JICA, ADB, BIDV, the Canadian Embassy in Vietnam, and co-financing partners attended the announcement ceremony. Participants expressed confidence that the program will improve access to finance for MSMEs, particularly those operating in agriculture.

The initiative also contributes to the implementation of the United Nations Sustainable Development Goals, including poverty reduction and food security.

Source: VNA