In Vietnam, Proparco supports HD Bank for its climate finance and gender equality projects

Proparco's first partnership with HD Bank goes back to August 2021, when it provided a five-year, $50 million credit facility to finance renewable energy projects in Vietnam.

The new loan of an equivalent amount is 70% dedicated to climate change financing projects and 30% to supporting women-owned businesses and compliance with the 2X Challenge program, an international initiative to promote gender equality.

Moreover, Proparco will assist the bank in improving its environmental and social risk management systems, enabling HD Bank to strengthen its relations with the world's leading financial institutions, particularly in the field of green finance.

Recognized for its contributions to the green economy, HDBank has received several awards, including the Green Deal Award and Best Green Financing in Vietnam from the Asian Banker Vietnam Excellence Awards.

Climate change: Vietnam at risk
Vietnam is highly vulnerable to natural hazards, whose impacts are and will be accentuated by the effects of climate change. The Global Climate Risk Index 2020 ranks Vietnam as the sixth country most affected by climate change. While most of Vietnam's commitments relate to adaptation measures, the 2020 Nationally Determined Contributions (NDC) announces emission reduction targets of up to 27%, thanks in particular to international financial support. France is one of the top four most active donors in Vietnam, anchoring its action at the heart of "Team Europe".

Gender equality: a national strategy
The main challenges facing women workers in Vietnam are in most cases associated with a lack of extensive professional networks, limited access to technology, a lack of time that can be allocated to education, training and professional careers. In fact, women in Vietnam suffer from limited access to bank credit financing, and therefore to land ownership. In addition, women-owned SMEs are more likely to be informal, small and clustered in low-productivity sectors, exposing entrepreneurs to greater risk in economic downturns.

In March 2021, Vietnam approved a strategy for gender equality covering the 2021-2030 timeframe. The targets are to (i) increase the rate of women in management positions and owning businesses (30% by 2030), (ii) promote the percentage of employed women (60% by 2030), (ii) reduce the share of women working in the agricultural sector (25% by 2030) and (iv) decrease the average time women spend on unpaid housework.

“With this new financing we are very pleased to extend our partnership with HD Bank, initiated in 2021”, said Raphaël de Guerre, Regional director for South East Asia at Proparco. “The bank plays a key role in providing financial support to green projects and SMEs, with a special focus on women-owned businesses in Vietnam”.