Viet Nam : Vietnam Prosperity Bank Expanding Access to Finance for Women-Owned Small and Medium-sized Enterprises Project

Nonsovereign Project | 55001-001

The proposed loan of up to $500 million to Vietnam Prosperity Joint Stock Commercial Bank comprising (i) a senior unsecured A Loan of up to $100,000,000 and (ii) B Loan of up to $400,000,000, expanding access to finance for women-owned small and medium-sized enterprises.

Project Details

  • Project Officer
    Rafiq, Adnan
    Private Sector Operations Department
    Request for information
  • Approval Date
    18 May 2022
  • Country/Economy
    Viet Nam
  • Sector
    • Finance

Related Projects

Project Name Vietnam Prosperity Bank Expanding Access to Finance for Women-Owned Small and Medium-sized Enterprises Project
Project Number 55001-001
Borrower / Company Vietnam Prosperity Joint Stock Commercial Bank
Country / Economy Viet Nam
Location Nation-wide
Type or Modality of Assistance
0834 Grant Women Entrepreneurs Finance Initiative USD 750,000 Committed
4184 Loan Ordinary capital resources USD 100.00 million Committed
CF103 B-Loan Other USD 400.00 million Approved
Operational Priorities OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
Strategic Agendas Inclusive economic growth
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Finance / Small and medium enterprise finance and leasing
Gender Equity and Mainstreaming Gender equity
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Private Sector Financial Institutions Division
Responsible ADB Officer Rafiq, Adnan
Project Sponsor(s)
Description The proposed loan of up to $500 million to Vietnam Prosperity Joint Stock Commercial Bank comprising (i) a senior unsecured A Loan of up to $100,000,000 and (ii) B Loan of up to $400,000,000, expanding access to finance for women-owned small and medium-sized enterprises.
Objectives and Scope To support the growth of its WSME loan portfolio, which entail longer-tenor loans, VP Bank needs longer-tenor financing to comply with regulatory requirements restricting the ratio of short-term funding to long-term funding and to reduce maturity mismatch risk. Long-tenor funding is not readily available given the relatively underdeveloped nature of the country's capital markets, and ADB's funding will address this market gap.
Linkage to Country/Regional Strategy Access to basic financial products for both women and SMEs supported (National Financial Inclusion Strategy until 2025 with a vision to 2030).
Safeguard Categories
Environment FI
Involuntary Resettlement FI-C
Indigenous Peoples FI-C
Summary of Environmental and Social Aspects
Environmental Aspects The potential environment and social impacts and risks associated with the Bank's existing and/or likely future portfolio using ADB's proceeds, its existing Environmental and Social Management System (ESMS) and its commitment and capacity for implementing the ESMS, have been assessed as per ADB's Safeguard Policy Statement 2009 (SPS 2009). The VP Bank has adopted an enhanced ESMS which screens and categorizes investment against ADB's Prohibited Investment Activities List and the SPS 2009; applies environmental and social requirements to borrowers as per its ESMS; reports annually or as required to ADB on environmental and social performance.
Involuntary Resettlement There are no expected involuntary resettlement impacts. Business activities that will lead to involuntary resettlement will be excluded from ADB funding.
Indigenous Peoples The project is not expected to entail any significant impact on indigenous peoples.
Stakeholder Communication, Participation, and Consultation The Bank has an existing policy on stakeholder engagement and external grievance mechanism to provide clear guidelines in managing concerns and expectations of its different stakeholders.
Timetable for assistance design, processing and implementation
Concept Clearance 14 Mar 2022
Credit Committee Meeting 14 Mar 2022
Approval 18 May 2022
Last PDS Update 13 Mar 2023

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