In a collaborative effort to support inclusive economic development and climate resilience in Vietnam, FinDev Canada, the Japan International Cooperation Agency (JICA), and Sumitomo Mitsui Banking Corporation (SMBC) have jointly committed to a syndicated loan facility totalling USD 215 million for Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank).
This landmark financing agreement will enable HDBank, a key player in Vietnam’s banking sector, to expand its outreach and support across critical sectors including agriculture, rural development, and green finance. The investment also targets Vietnam’s micro, small and medium-sized enterprises (MSMEs), with a strong emphasis on women-led and women-owned businesses, as well as social housing initiatives for lower-income segments of the population.
As part of the facility, FinDev Canada will provide USD 75 million. A minimum of 40% of these funds will be channelled into strengthening agricultural development, with particular focus on helping retail clients and MSMEs operating along the agricultural value chains. These sectors often encounter difficulties in accessing modern financing mechanisms and technological solutions.
To advance women’s financial inclusion, at least 30% of FinDev Canada’s contribution will be allocated to MSMEs that meet 2X criteria – a global framework for gender-lens investing – and are either led or owned by women. This initiative aims to expand women’s participation in economic activities and support their leadership roles within Vietnam’s business landscape.
Vietnam remains particularly exposed to climate change, with growing risks from drought, flooding, and saltwater intrusion projected to impact national GDP by as much as 12% to 14.5% by 2050. In response to these concerns and aligning with the country’s climate goals for 2030, FinDev Canada will direct at least 30% of its loan portion towards climate finance initiatives. These projects will cover areas such as renewable energy deployment, improvements in energy efficiency, and wastewater treatment systems.
Paulo Martelli, Vice President and Chief Investment Officer at FinDev Canada, commented on the agreement, stating: “FinDev Canada is pleased to partner with HDBank, SMBC and JICA on this landmark facility – one of our first direct investments in Vietnam. This partnership reflects our shared ambition to support long-term development and amplify impact across the country. We recognize the critical role the financial industry plays in advancing economic growth, gender equality and climate action. By leveraging our combined resources and expertise, we are helping shape a more sustainable future.”
This multi-institutional loan arrangement signifies a concerted international approach to backing Vietnam’s developmental agenda while supporting global efforts toward the Sustainable Development Goals and climate commitments.
About FinDev Canada
FinDev Canada is Canada’s bilateral Development Finance Institution (DFI), supporting development through the private sector. We provide financing, investment, and blended finance solutions, as well as technical assistance and advisory, to promote sustainable and inclusive growth in emerging markets and developing economies (EMDEs), in alignment with the Sustainable Development Goals (SDGs) and Paris Agreement commitments.
About HDBank
Established in 1990, HD Bank is recognized as one of first joint stock commercial banks in Vietnam. With over 30 years of operation, HDBank is now one of the leading banks in the country and is expanding internationally. The bank provides comprehensive financial services to support MSMEs, farmers, and rural communities, fostering access to credit and promoting economic growth.
