HA NOI, VIETNAM (12 December 2018) — The Asian Development Bank (ADB) and Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) today signed a USD300 million loan agreement to support the growth and productivity of small and medium-sized enterprises (SMEs) in Vietnam. The agreement was signed by Director General of ADB’s Private Sector Operations Department Mr. Michael Barrow and BIDV’s Senior Executive Vice President in charge of the Board of Management Mr. Le Ngoc Lam.

Mr. Phan Duc Tu, BIDV’s Chairman of the Board of Directors said: “The facility is comprised of a USD200 million loan provided by ADB and a USD100 million loan arranged by ADB from 12 commercial lenders. This is the largest commercial loan ADB has provided to an Asian commercial bank so far, affirming the development finance institutions’ positive evaluation on Vietnam’s stability and economic growth as well as the trust in Vietnam’s banking operations in general and BIDV in particular. The facility will support SMEs in Vietnam and also reaffirms our partnership with ADB in achieving poverty reduction, economic growth, regional integration and environmental protection. The loan symbolizes the long-term cooperation between ADB and BIDV for sustainable development in Vietnam.”

“ADB’s partnering with BIDV, the largest lender to the country’s SME sector, will boost lending to businesses, which often find it challenging to gain access to finance,” said Mr. Barrow. “BIDV’s effort to make SME lending a key strategic priority is aligned with ongoing endeavors by ADB and the Government of Vietnam to improve access to finance for SMEs, thereby contributing to inclusive economic growth. The loan demonstrates ADB’s ability to catalyze long-term lending from commercial institutions to channel investments for development impact, said Mr. Barrow. Twelve commercial lenders from different countries have joined with ADB to provide the long-term lending facility.”

Addressing the signing ceremony, H.E. Mdm. Nguyen Thi Hong, Deputy Governor of the State Bank of Vietnam, congratulated the success of the facility and called for new cooperative opportunities which are even deeper and more effective for ADB, BIDV and commercial banks.

SMEs account for most of Vietnam’s businesses, contributing around half of total employment and 40% of gross domestic product. Despite their significant contribution to the economy, SMEs still encounter numerous obstacles that inhibit their economic potential, including lack of access to finance needed to expand.

In recent years, BIDV has increasingly served the SME segment with positive results. As of 30 June 2018, BIDV had 250,000 SME customers—almost 40% of total SME customers in Vietnam. Its lending portfolio to SMEs reached over VND240 trillion (approximately USD10.4 billion), giving it the largest share of SME lending among the country’s banks.

The loan will make ADB the first development finance institution to provide long-term commercial lending to BIDV. ADB will work with BIDV to maximize the positive social and environmental impacts of the assistance by implementing an environmental and social management system. Digital finance will be promoted through the introduction of new digital products to reach financially underserved populations in rural areas including SMEs owned by women.

About BIDV

Founded in 1957, BIDV is the largest commercial bank in Vietnam by total assets. As of November 2018, the bank’s total assets reached over VND1.25 quadrillion (equivalent to USD55 billion) with a network of over 1000 branches and transaction offices in Vietnam and worldwide. For the three consecutive years since 2016, BIDV has been the only bank in Vietnam to be honored with the award of ‘ADB’s Leading Partner Bank in Vietnam’. The Bank has also been awarded “Best SME Bank Vietnam 2018” by Global Banking and Finance Review (UK), “SME Bank of the Year” by Asian Banking & Finance (Singapore) and “Best SME Bank Vietnam 2018” by Alpha Southeast Asia.

About ADB

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 67 members—48 from the region. In 2017, ADB operations totaled USD32.2 billion, including USD11.9 billion in cofinancing.

For further information, please contact:

Financial Institutions Department

Bank for Investment and Development of Vietnam JSC.

Tel: (+84)24 2220 5544 (Ext: 7140).

Email: bandctc@bidv.com.vn

Website: www.bidv.com.vn