Established in 1993, Vietnam Prosperity Joint-Stock Commercial Bank ("VPBank") is one of the largest private banks in Vietnam. It has a particular focus on retail and SME customers, supporting segments of the economy usually underserved in terms of banking services, through its nationwide network of agencies and specialized centers for small and medium sized business segment.
Supporting climate-friendly projects and SMEs
30% of the loan, amounting to USD 15 million, will be dedicated to the development of VPBank's portfolio of climate-friendly projects and energy efficiency loans. Due to greenhouse-gas emissions, Vietnam is one of the most carbon intensive countries in the East Asia and Pacific region. This project, in alignment with the Agence Française de développement (AFD) Group's "100% Paris Agreements" objective, will increase financing for climate mitigation in Vietnam, addressing the country’s significant need on this issue.
70% of the loan, amounting to USD 35 million, will be dedicated to supporting VPBank’s SME financing activity. This operation should have a positive impact on SMEs' access to bank credit and services, in the context of financing deficit for SMEs in the country. By supporting small businesses activities, it will also contribute to supporting local employment. The project will hence contribute to SDGs No. 8 Decent work and economic growth, and No. 13 Climate action.
"Vietnam is a strategic country for Proparco and the AFD Group, due to its importance in South East Asia and the challenges it is facing, first and foremost climate change. This operation with a new leading bank partner enables Proparco to reach Vietnam's financial sector, and to support the country's productive sector as well as green lending market to meet climate challenges." - Magali Roux, Proparco’s Regional Director in Southeast Asia.