Hanoi (VNS/VNA)- The Asian Development Bank (ADB) signed a 25 million USD loan with Tien PhongCommercial Joint Stock Bank (TPB) to expand access to finance of women-ownedand -led small and medium-sized enterprises (WSMEs) in Vietnam. 

The project is alsoco-financed by DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH(DEG) for 25 million USD.

The loan is accompanied bya 750,000 USD technical assistance grant to help TPB better meet the needs ofWSMEs. The grant will be used to build TPB’s capacity to lend to WSMEs, hirestaff, and promote its services to female borrowers. It will also enable TPB touse digital systems to analyse the underserved WSME market. The grant is fundedby the Women Entrepreneurs Finance Initiative (We-Fi). 

“We are very pleased topartner with TPB and We-Fi to support WSMEs, which are important channels toincrease women’s participation in Vietnam's economic development,” said ADB’sDirector General for Private Sector Operations Suzanne Gaboury.

“COVID-19 has severelyaffected many businesses, and initiatives such as this loan and grant willsupport particularly underserved female borrowers by helping TPB developsystems and procedures to improve their access to finance.”

As of 2018, the majority ofbusinesses in Vietnam are classified as small and medium-sized enterprises,supporting 38 percent of the country’s employment and generating 40 percent ofgross domestic product. But their access to finance is still a challenge, withonly 37 percent of WSMEs able to obtain loans from banks, according to a2017 study. 

“ADB, DEG, and TPB’sgoals are uniquely aligned especially in our mutual support of WSMEs,” saidTPB’s Chief Executive Officer Nguyen Hung.

“We will continue toleverage our strength in digital banking to tailor products and services forWSMEs and plan to increase supply chain financing and support services,liquidity, and digital banking products to reach underserved customers.”

TPB is one of the leadingjoint-stock banks in Vietnam. It has robust digital platforms that help meetthe needs of its retail and SME customers by offering innovative and customisedproducts.

We-Fi is a collaborativepartnership among 14 governments, eight multilateral development banks, andother public and private sector stakeholders, hosted by the World Bank Group.

ADB is committed toachieving a prosperous, inclusive, resilient, and sustainable Asia and thePacific, while sustaining its efforts to eradicate extreme poverty. Establishedin 1966, it is owned by 68 members – 49 from the region./.