At the signing ceremony. (Photo courtesy of IFC) As part of the agreement signed on March 20, IFC is providing a 40 million USD loanto SHB, which is the first step towards a total financing package of 120million USD. This funding will help SHB support local businesses and enhancetheir participation in the global supply chain. The investment from IFC isexpected to more than double the number of SME loans and outstanding loanvolumes for women-owned businesses by 2025.
Furthermore, more than one third of the funding will be solely targeted at women-ownedSMEs, with support from the Women Entrepreneurs Opportunity Facility (WEOF) andthe Women Entrepreneurs Finance Initiative (We-Fi), through a performance-basedincentive programme which encourages financial institutions to providefinancing to women-owned small businesses.
This is particularly important, as SMEs generate 40% of Việt Nam's grossdomestic product (GDP) and 50% of jobs, yet 62% of total SME financing needs gounmet. An IFC study estimates that Vietnam’s financing gap for SMEs isapproximately 21.7 billion USD.
Ngo Thu Ha, the CEO of SHB, believes that with timely supportpolicies, solutions, and capital flows such as this package from IFC, SMEs willbe able to unlock their potential, expand production, and pursue sustainabledevelopment.
"With support from IFC and international lenders, SHB will be able tofurther strengthen its solid foundation and buffer, grow stably andsustainably, and comply with international standards," Ha said.
IFC's Global Director of Goldman Sachs 10,000 Women, Charlotte Keenan, stated:"We are pleased to continue to empower female entrepreneurs to accelerategrowth and recharge their businesses through access to capital. We look forwardto supporting SHB as it expands lending to women-owned businesses in Vietnam."
Moreover, approximately one-fifth of the financing package will be on-lent toSMEs participating in supply chains. This complements IFC's ongoing advisorysupport to help SHB scale up its Supply Chain Finance (SCF) business, a newsegment in the local market which offers efficient and lower-cost financingsolutions to suppliers participating in supply chains.
"It's vital that smaller businesses and especially those owned by womenare supported and able to access the funding they need to grow and expand theirbusinesses. Our new partnership with SHB will help the bank strengthen its corebusiness of serving smaller enterprises and allow those businesses to benefitfrom financing to link in with global supply chains, a move that willultimately contribute to economic growth and job creation in Vietnam,"said Thomas Jacobs, IFC Country Manager for Vietnam, Cambodia, and Laos.
IFC is also working with international lenders to mobilise a 50 million USD financingpackage to further improve SHB's capacity in SME lending. Additionally, a 75million USD trade guarantee line under IFC's Global Trade Finance Programme(GTFP) is expected to be provided to SHB in the coming months. IFC will alsoadvise SHB to improve its risk management and environmental, social, andgovernance (ESG) standards./.
"With support from IFC and international lenders, SHB will be able tofurther strengthen its solid foundation and buffer, grow stably andsustainably, and comply with international standards," Ha said.
IFC's Global Director of Goldman Sachs 10,000 Women, Charlotte Keenan, stated:"We are pleased to continue to empower female entrepreneurs to accelerategrowth and recharge their businesses through access to capital. We look forwardto supporting SHB as it expands lending to women-owned businesses in Vietnam."
Moreover, approximately one-fifth of the financing package will be on-lent toSMEs participating in supply chains. This complements IFC's ongoing advisorysupport to help SHB scale up its Supply Chain Finance (SCF) business, a newsegment in the local market which offers efficient and lower-cost financingsolutions to suppliers participating in supply chains.
"It's vital that smaller businesses and especially those owned by womenare supported and able to access the funding they need to grow and expand theirbusinesses. Our new partnership with SHB will help the bank strengthen its corebusiness of serving smaller enterprises and allow those businesses to benefitfrom financing to link in with global supply chains, a move that willultimately contribute to economic growth and job creation in Vietnam,"said Thomas Jacobs, IFC Country Manager for Vietnam, Cambodia, and Laos.
IFC is also working with international lenders to mobilise a 50 million USD financingpackage to further improve SHB's capacity in SME lending. Additionally, a 75million USD trade guarantee line under IFC's Global Trade Finance Programme(GTFP) is expected to be provided to SHB in the coming months. IFC will alsoadvise SHB to improve its risk management and environmental, social, andgovernance (ESG) standards./.
VNA
