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Two more local banks join ADB’s trade finance program

Tu Hoang
Friday,  May 26,2017,00:09 (GMT+7)
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Two more local banks join ADB’s trade finance program

Tu Hoang

<p align="left" class="SGTOSummary"> HANOI &ndash; The Asian Development Bank&rsquo;s (ADB) Trade Finance Program (TFP) on May 24 signed agreements with two more Vietnamese banks to provide guarantees of up to US$50 million annually via these two institutions for trade finance in Vietnam.</p> <p> By joining this program, An Binh Joint Stock Bank (ABBank) and Tien Phong Commercial Joint Stock Bank (TPBank) will gain financial support to help Vietnamese enterprises expand trade with international partners.</p> <p> &ldquo;Trade and trade finance are critical to the global and regional economy, in particular to small and medium-sized enterprises and job creation,&rdquo; said Steven Beck, ADB&rsquo;s head of trade finance, in a statement released on May 24.</p> <p> &ldquo;Our program aims to help Vietnam and Vietnamese businesses expand trade opportunities, increase competitiveness, and promote trade-led inclusive growth.&rdquo;</p> <p> Cu Anh Tuan, chief executive officer of ABBank, said the cooperation with the TFP will not only bring higher business efficiency, but also create an opportunity for the bank to affirm its brand in the banking and financial market.</p> <p> &ldquo;The signing of the TFP marks the start of a positive development and close relationship between ADB and ABBank in developing our banking services,&rdquo; Tuan said. His bank is given an annual trade finance limit of US$20 million from the regional lender.</p> <p> ABBank, with chartered capital of VND5,319 billion (about US$234 million), has an extensive network of 164 transaction offices in 34 cities and provinces nationwide.</p> <p> Meanwhile, ADB&rsquo;s trade finance program also pledged a limit of US$30 million for TPBank.&nbsp;</p> <p> &ldquo;The guarantee limit from ADB shall be used to support Vietnamese small and medium-sized enterprises to optimize their businesses, so they can contribute to Vietnam&rsquo;s economic growth,&quot; said Nguyen Hung, chief executive officer of TPBank.</p> <p> TPBank is one of the most dynamic commercial banks in Vietnam with total assets of around VND106,000 billion (about US$4.6 billion), about 4,000 employees, and an extensive network of 55 branches and transaction offices in Vietnam.</p> <p> With more than 1.5 million individual and corporate customers, TPBank has been asserting its position as a sustainable and healthy bank in Vietnam.</p> <p> To date, TFP has supported US$8.2 billion in trade through 5,814 transactions covering both guarantees and direct funding in Vietnam. Out of TFP&rsquo;s total transactions in Vietnam, 67% are related to small and medium-sized enterprises.</p> <p> TFP is currently working with 11 banks in Vietnam and, with the May 25 signing, this will increase to 13 banks.&nbsp;The TFP, backed by ADB&rsquo;s AAA credit rating, provides guarantees and loans to over 200 partner banks to support trade, enabling more companies throughout Asia to engage in import and export activities.</p> <p> With dedicated trade finance specialists and a 24-hour response time, the program has established itself as a key partner in the international trade community, providing fast, reliable, and responsive support to fill gaps in the region&rsquo;s most challenging markets.</p> <p> Since 2009, TFP has supported more than 9,200 small and medium-sized businesses across developing Asia, through over 13,000 transactions valued at over US$25.5 billion, in sectors ranging from commodities and capital goods, to medical supplies and consumer goods.</p>
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