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ADB, LPBank sign financing package to support women entrepreneurs in Vietnam

Women's Tabloid News Desk
Women's Tabloid News Desk

The Asian Development Bank (ADB) has partnered with Lien Viet Post Bank (LPBank) to secure an $80 million financing package. The primary objective of this financial arrangement is to enhance access to capital for women-owned small and medium-sized enterprises (SMEs) across the country.

According to a statement released on Wednesday, the financing structure consists of a $30 million loan from ADB’s ordinary capital resources, complemented by syndicated parallel loans totaling $50 million. Notably, these parallel loans include $30 million from the Export-Import Bank of China (CEXIM) and $20 million from the ILX Fund, an asset manager based in Amsterdam that focuses on sustainable development goals in emerging markets.

As part of the agreement, ADB will assume the role of the mandated lead arranger and bookrunner for the entire financing endeavor. This collaboration aims to enable LPBank to innovate its product offerings and operational procedures specifically tailored to support women-owned SMEs (WSMEs).

Highlighting the broader impact of the initiative, Suzanne Gaboury, ADB’s director general for private sector operations, emphasized, “By providing access to finance and tailored advisory services, our partnership with LPBank will empower women entrepreneurs in Vietnam to thrive and contribute to the country’s economic growth.”

LPBank, represented by Vice Chairman Le Minh Tam, echoed this sentiment, underscoring the loan package’s potential to deliver effective financial solutions crucial for WSMEs, especially in the post-pandemic recovery phase. “This loan package has more potential to provide effective financial solutions for customers, and also shows the efforts in supporting WSMEs, especially where they are in need of capital to recover from the pandemic and further develop their businessness,” Tam stated.

The funding package also includes a $750,000 performance-based grant funded by We-Fi (Women Entrepreneurs Finance Initiative), designed to incentivize LPBank to broaden its services for female borrowers and implement advisory support programs tailored for WSMEs.

According to ADB, SMEs constitute 40% of Vietnam’s GDP and represent half of all employment opportunities in the country. Despite their significant economic contribution, access to commercial finance remains a persistent challenge for SMEs, particularly for female entrepreneurs who often encounter obstacles such as inadequate collateral, limited financial literacy, and perceived higher risks by financial institutions.

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