HANOI – The Asian Development Bank’s Trade Finance Program (TFP) and Vietnam-based HCMC Development Commercial Bank (HDBank) signed a credit agreement on Wednesday to bolster trade in the Southeast Asian country.
“We have had a relationship with HDBank since 2016 and we are pleased to be able to both deepen that relationship and further our commitment to boost trade in Vietnam,” stated ADB Relationship Manager for Vietnam Can Sutken.
“This credit agreement will enable HDBank to access trade finance from ADB, which is expected to support the import and export activities of our customers as well as further promote trade activities in Vietnam,” noted CEO of HDBank, Pham Quoc Thanh.
Since 2004, TFP has supported US$13.5 billion in trade in Vietnam through 13,530 transactions covering both guarantees and direct funding, nearly two-thirds of which supports small- and medium-sized enterprises (SMEs).
TFP works with 14 commercial banks in Vietnam.
Backed by ADB’s AAA credit rating, TFP provides guarantees and loans to over 200 partner banks to support trade, enabling more companies throughout Asia and the Pacific to engage in import and export activities.
Since 2009, ADB’s TFP has supported some 20,000 SMEs across Asia through over 26,000 transactions valued at over US$41 billion in sectors ranging from commodities and capital goods to medical supplies and consumer goods.
TFP complements its financial support with knowledge products including a study that quantifies market gaps for trade finance, fleshes out initiatives to increase the role of women in banking, improves efforts to enhance environmental safeguards and lists out initiatives to fight crime through greater transparency in the global financial system.
TFP also provides workshops and seminars to increase knowledge and expertise in matters related to finance, trade, risk management and fraud prevention.
HDBank is one of the emerging banks in Vietnam, with a client base including SMEs, retail and consumers. It is committed to sustainable development, regional reach, integration of international financial markets, being a trusted partner for investors and customers and contributing actively to the country’s economic development.
Meanwhile, ADB is committed to achieving a prosperous, inclusive, resilient and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Founded in 1966, it is owned by 68 members, with 49 from the region.
By Gia Phong