The Asian Development Bank (ADB) has completed a $100 million loan agreement with Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) to increase funding for smaller enterprises in Vietnam. The capital deployment focuses specifically on micro, small, and medium-sized enterprises (MSMEs), with a particular emphasis on women-owned businesses.

Acting as the lead arranger and co-coordinator alongside Standard Chartered Bank (Singapore) Limited, ADB also gathered 29 commercial banks to raise a further $621 million. This collaborative effort increases the total capital pool available to HDBank. The deal aims to enhance the presence of HDBank in international capital markets while showcasing how development banks can organise private investment to back inclusive financial frameworks throughout the Asia-Pacific region.

Lending through this financial facility will assist the medium-term and long-term operations of HDBank. The bank must allocate at least 40% of the core ADB loan directly to women-led firms. HDBank will distribute the funds to qualifying businesses under its sustainable finance guidelines. Smaller companies represent a vital economic pillar in Vietnam, making up more than 97% of all registered corporate entities, generating roughly 36% of total jobs and contributing 40% of the national gross domestic product.

Shantanu Chakraborty, ADB Country Director for Viet Nam, said: “Strengthening access to finance for MSMEs, particularly women-owned businesses, is essential for inclusive and resilient growth in Viet Nam. ADB’s partnership with HDBank will help channel much-needed capital to underserved enterprises and support broader participation in economic opportunities.”

Despite their economic importance, smaller companies in Vietnam frequently encounter hurdles when seeking formal credit due to limited collateral options, brief credit histories and high risk perceptions among lenders. To address this, the project includes technical assistance from ADB to create specialised credit options and aid sustainable corporate expansion. HDBank has established a significant commercial presence in Vietnam, focusing on retail and consumer services alongside its digital banking operations.

Nguyen Huu Dang, Chief Executive Officer of HDBank, said: “ADB’s support will enable HDBank to further expand access to finance for MSMEs and deepen our commitment to supporting women-owned businesses. This partnership underscores our continued focus on inclusive growth and sustainable finance.”