ADB finances sustainable and climate-resilient agriculture in Viet Nam
VGP - The Asian Development Bank (ADB) and the Joint Stock Commercial Bank for Investment and Development of Viet Nam (BIDV) signed a US$250 million syndicated finance package designed to support sustainable and climate-resilient agriculture in Viet Nam.
The package also aims to expand access to finance for women-owned small and medium-sized enterprises (WSMEs) in the Southeast Asian country.
The financing package comprises US$100 million from ADB's ordinary capital resources, US$20 million from the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA), a US$50 million syndicated parallel loan from Japan International Cooperation Agency, and a US$80 million syndicated commercial parallel loan from other banks.
As the mandated lead arranger and bookrunner, ADB structured, syndicated, and arranged the entire debt package, mobilizing private capital into Viet Nam's SME sector.
This transaction represents an important milestone in ADB's partnership with BIDV and in promoting climate-smart, inclusive growth in Viet Nam's agriculture sector, said ADB Country Director for Viet Nam Shantanu Chakraborty.
By blending commercial and concessional capital and providing technical assistance, this project will help strengthen BIDV's capacity to serve farmers and agribusinesses, especially women entrepreneurs, while supporting Viet Nam's transition toward a green and resilient economy, he added.
Agriculture plays a vital role in Viet Nam's economy, employing about 45 percent of the labor force. However, the sector faces challenges from fragmented production, limited technology adoption, and increasing climate risks.
As Viet Nam pursues its goal of becoming a top 15 global agricultural exporter by 2030, substantial investment—estimated at nearly US$100 billion—will be needed to enhance climate resilience, reduce emissions, and maintain competitiveness.
The facility will provide sub-loans to agribusinesses engaged in sustainable agricultural production, climate adaptation, and resource efficiency. It will also help BIDV develop new financial products that promote green and inclusive lending, enhance credit assessment for agriculture, and expand access to finance for WSMEs in rural areas./.
