ADB Initiates $5M Project to Help Vietnam Improve Inclusive Finance
The Asian Development Bank (ADB) kicked off the technical assistance project on expanding inclusive and climate finance worth $5 million for Vietnam at an event attended by officials from the State Secretariat for Economic Affairs (SECO) on October 25, local media reported.
The project is funded by the Swiss government to promote fintech to improve inclusive finance in Vietnam. The effort will also be supported by an additional $2 million from the Japan Fund for Prosperous and Resilient Asia and the Pacific (JFPR) to foster green banking and green credit.
Financial barriers in Vietnam have been affecting micro, small, and medium-sized enterprises. Woman-led small businesses endured even bigger impacts, with a financial shortage of $1.2 billion.
The assistance contemplates training opportunities on fintech and green banking best practices for SBV staff, targeting 25% female participation and consulting services to woman-led small and medium-sized enterprises (WSMEs) on preparing green loan applications.
The project will also help the SBV in building and deploying a legal framework to consolidate the digital finance sector and ensure the safety of the market and robust ecosystem.
It will contribute significantly to accelerating green growth via the development and contribution of green banks and green credit, said Deputy Governor of the SBV Pham Tien Dung.
Meanwhile, State Secretary of the Swiss Federal Department of Economic Affairs, Education and Research Dominique Paravicini affirmed that the project will bring new chances for small and medium-sized enterprises to improve credit access by strengthening Vietnam’s fintech sector and boosting digitalization in the banking industry.