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IFC has partnered with HD Bank in Vietnam to fund SMEs

International Finance Corporation (IFC) has partnered with Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) to help Vietnamese small and medium-sized enterprises access innovative financing, join the global supply chain and enter new markets. We are expanding and supporting the promotion of the Vietnamese economy. .. This collaboration is expected to help HDBank build a $ 1 billion SCF portfolio by 2025.

The move is a memorandum of understanding (MoU) in Washington, DC aimed at strengthening supply chain finance (SCF) for small and medium-sized enterprises (SMEs) in the country between IFC and HD Bank, Vietnam’s leading private retail bank. Following the signature and sightings of. ).

Lack of working capital is an important constraint for Vietnamese local enterprises, especially SMEs, which make up about 98% of all enterprises. Innovative financing, such as SCF, creates early cash flow for suppliers and distributors by converting accounts receivable and inventories into immediate cash, enabling low-cost financing. It is relatively new in Vietnam and reaches most small businesses. Mortgage-backed loans continue to be the main source of funding for SMEs. As a result, the share of receivables and inventories registered as collateral for movables in Vietnam is only about 30%, significantly lower than that of more developed markets, IFC said in a media release.

IFC has partnered with HCM City Development Joint Stock Commercial Bank (HDBank) to help Vietnamese SMEs access innovative funds, join the global supply chain, expand into new markets and the Vietnamese economy. We support the promotion of. This collaboration is expected to help HDBank build a $ 1 billion SCF portfolio by 2025.

“Supply chain finance, which connects buyers, suppliers and financial institutions, effectively supports the trade cycle. With IFC’s timely support, local businesses can take advantage of new trade opportunities and collaborate with formal supply chains. Will improve and contribute to Vietnam’s economic growth. ” HD Bank CEO Thanh Pham.. “This will help HDBank to emphasize value chain financing, expand its anchor client base, and further help realize its vision of becoming the top bank in the country, with a focus on SMEs and retail banking. Agricultural chains are us, especially high-tech and green agriculture. “

At the beginning of April, IFC provided HDBank with a $ 40 million trade finance line under the Global Trade Finance Program. This enhances the lender’s ability to cover payment risks when granting trade finance to local businesses, primarily SMEs. HDBank is the latest Vietnamese bank to participate in this program since it was launched in Vietnam in 2007. This allowed Vietnam’s participating banks to issue more than 1,700 guarantees worth more than $ 8 million to support local exporters and importers, especially during COVID-19. .. It eases the liquidity constraints of your business and protects thousands of jobs.

“SMEs are the backbone of Vietnam’s economy and essential to Vietnam’s ambition to become a regional manufacturing hub,” he said. Stephanie von Friedeburg, Senior Vice President of Operations at IFC.. “Support for local financial institutions like HDBank helps Vietnamese SMEs link to the global supply chain and access opportunities to grow and create jobs.”

IFC’s technical support for HDBank is part of a multi-year program in collaboration with the Swiss Economic Secretariat (SECO) to develop SCF businesses for regulators, regional banks, and non-bank institutions. Provides detailed advisory services. Vietnam contributes to the expansion of market integration and supports the growth of the domestic SME sector.

Fiber2Fashion News Desk (KD)



IFC has partnered with HD Bank in Vietnam to fund SMEs

Source link IFC has partnered with HD Bank in Vietnam to fund SMEs

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