Agreements signed with two local banks to support importers and exporters.
The Asian Development Bank (ADB)’s Trade Finance Program and two Vietnamese’s banks – the Ho Chi Minh Development Bank and the Saigon-Hanoi Commercial Bank - have signed agreements enabling the program to provide guarantees of up to $100 million a year to support trade finance in Vietnam.
According to Mr. Steven Beck, ADB’s Head of Trade Finance, under these agreements the ADB and the two banks will support exporting and importing companies, including small and medium-sized enterprises (SMEs). “This agreement will help create economic growth and jobs,” he added.
ADB’s Trade Finance Program has been operating in Vietnam since 2009. The new agreements add to nine existing bank partnerships under the program. Since 2009 the program has conducted 4,303 transactions, supporting $6.5 billion in trade in Vietnam.
“Seventy-five per cent of the support is related to SMEs,” Mr. Eric Sidgwick, ADB Country Director in Vietnam, said, adding that Vietnam is one of the program’s most active and important markets and that signing these agreements adds to its significant record of support for trade in the country.
The program’s loans and guarantees will be complemented by workshops and seminars to increase knowledge and expertise on trade finance, resulting in more support to exporting and importing companies in Vietnam.
Since 2009 the program has supported more than 6,000 SMEs across the region, through some 10,000 transactions valued at over $20 billion in sectors ranging from commodities and capital goods to medical supplies and consumer goods.