The Asian Development Bank (ADB) and the Joint Stock Commercial Bank for Investment and Development of Viet Nam (BIDV) have signed a $250 million syndicated finance package aimed at supporting sustainable, climate-resilient agriculture and improving access to finance for women-owned small and medium-sized enterprises (WSMEs) in Viet Nam.
The financing package includes $100 million from ADB’s ordinary capital resources and $20 million from the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA). It also comprises a $50 million syndicated parallel loan from the Japan International Cooperation Agency, alongside an $80 million syndicated commercial parallel loan provided by Cathay United Bank Co., Ltd., CTBC Bank Co., Ltd. Singapore Branch, and Taipei Fubon Commercial Bank Co., Ltd. ADB acted as the mandated lead arranger and bookrunner, structuring and syndicating the full debt package and mobilising private capital into Viet Nam’s SME sector.
“This transaction represents an important milestone in ADB’s partnership with BIDV and in promoting climate-smart, inclusive growth in Viet Nam’s agriculture sector,” said ADB Country Director for Viet Nam Shantanu Chakraborty. “By blending commercial and concessional capital and providing technical assistance, this project will help strengthen BIDV’s capacity to serve farmers and agribusinesses, especially women entrepreneurs, while supporting Viet Nam’s transition toward a green and resilient economy.”
Agriculture remains a key pillar of Viet Nam’s economy, employing around 45% of the labour force. Despite its importance, the sector continues to face challenges including fragmented production systems, low levels of technology adoption, and rising climate-related risks. Viet Nam has set a target of becoming one of the world’s top 15 agricultural exporters by 2030, a goal that will require almost $100 billion in investment to improve climate resilience, reduce emissions, and sustain competitiveness.
Under the facility, sub-loans will be extended to agribusinesses involved in sustainable production, climate adaptation, and improved resource efficiency. The programme will also support BIDV in developing new financial products that encourage green and inclusive lending, strengthen agricultural credit assessment, and widen access to finance for WSMEs in rural communities.
“This partnership demonstrates our shared commitment to advancing Viet Nam’s development goals,” said BIDV Executive Vice President Pham Vu Thien Nga. “Through the Medium and Long Term Facilities with ADB, JICA and the Commercial Lenders, together with concessional funding from CANPA, BIDV will strengthen its support for customers in developing sustainable agricultural models and expand access to finance for women and business owners in rural areas, thereby contributing to inclusive and resilient economic growth of Vietnam’s economy.”
The financing is accompanied by technical assistance to enhance BIDV’s environmental and risk management capabilities. Support will include skills development for staff and clients, including WSMEs, to identify sustainable agriculture investment opportunities and improve awareness of sustainable finance. Through a Women Entrepreneurs Finance Initiative grant, the project will also back gender-responsive financial products and systems.
Established in 2024, CANPA is a trust fund managed by ADB, supported by a commitment of Can$360 million from the Government of Canada. The fund builds on the success of the Canadian Climate Fund for the Private Sector in Asia II (CFPS II) and its predecessor CFPS. CANPA supports private-sector projects in Asia and the Pacific that focus on climate and nature-based solutions, while also promoting gender equality.
Founded in 1957, BIDV is the largest bank in Viet Nam in terms of total assets and is listed on the Ho Chi Minh Stock Exchange, with multiple subsidiaries, affiliates, and joint ventures. In 2019, KEB Hana Bank (Republic of Korea) acquired a 15% strategic stake in BIDV.
ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.
