The financing package supporting sustainable and climate-resilient agriculture in Viet Nam comprises 100 million USD from ADB’s ordinary capital resources; 20 million USD from the Canada Climate and Nature Fund for the Private Sector in Asia (CANPA); 50 million USD from a parallel syndicated loan by the Japan International Cooperation Agency (JICA); and 80 million USD from a parallel commercial syndicated loan provided by Cathay United Bank Co., Ltd., CTBC Bank Co., Ltd. – Singapore Branch, and Taipei Fubon Commercial Bank Co., Ltd. Acting as the lead arranger and official guarantor, ADB structured, coordinated, and arranged the entire debt package, thereby mobilising private capital for the SME sector in Viet Nam.
Shantanu Chakraborty, ADB Country Director for Viet Nam, said: “This transaction marks an important milestone in the partnership between ADB and BIDV, while advancing inclusive and climate-smart growth in Viet Nam’s agriculture sector. By combining blended commercial and concessional finance with technical assistance, the project will strengthen BIDV’s capacity to serve farming households and agribusinesses, especially women entrepreneurs, while supporting Viet Nam’s transition to a green and climate-resilient economy.”
Agriculture plays a critical role in Viet Nam’s economy, employing around 45% of the workforce. However, the sector faces major challenges, including fragmented production, limited application of technology, and increasing climate risks. To achieve its goal of becoming one of the world’s top 15 agricultural exporters by 2030, Viet Nam will require substantial investment, estimated at nearly 100 billion USD, to enhance climate resilience, reduce emissions, and maintain competitiveness.
The financing package will provide sub-loans to agribusinesses engaged in sustainable, climate-adaptive, and resource-efficient agricultural production. It will also support BIDV in developing new financial products, promoting green and inclusive credit, strengthening credit appraisal capacity for the agriculture sector, and expanding access to finance for women-owned SMEs in rural areas.
Representing BIDV, Pham Vu Thien Nga, Director of the Financial Institutions Department, stated: “This partnership reflects our shared commitment to advancing Viet Nam’s development goals. Through cooperation on a medium- and long-term loan with ADB, JICA, and a group of commercial financial institutions, together with concessional funding from the CANPA Climate Fund, BIDV will enhance support for customers in developing sustainable agriculture models, expand access to finance for women and rural business owners, and thereby contribute to inclusive economic growth in Viet Nam.”
The financing package is accompanied by technical assistance to strengthen BIDV’s capacity in environmental and risk management. This support will enhance the skills of BIDV staff and clients, including women-owned SMEs, to identify and capitalise on investment opportunities in sustainable agriculture, while raising awareness of sustainable agricultural finance. Through technical assistance from the Women Entrepreneurs Finance Initiative (We-Fi), the package will support the development of gender-responsive financial products, the implementation of gender-disaggregated management information systems, and gender assessments of BIDV’s policies and services.
