IFC Provides Record Funding for Trade Finance for Vietnam Businesses
IFC, a member of the World Bank Group, recently committed a record US$505 million in the last 12 months (fiscal 2011) to enable Vietnamese banks to help local companies increase their import and export activities and create jobs through its Global Trade Finance Program.
The program, since its launch in Vietnam in late 2007, has helped improve the capacity of nine banks to cover the payment risk in granting trade financing to local companies, mostly small and medium enterprises. Under the program, the banks have issued 268 guarantees to support US$1 billion in trade finance transactions. Techcombank, an IFC partner since 2007, has been the program’s largest user in Vietnam.
This year Lien Viet Bank, Orient Commercial Bank, Tien Phong Bank, and Vietnam International Bank joined the program. IFC’s other partner banks in Vietnam are An Binh Bank, Asia Commercial Bank, Saigon Thuong Tin Commercial Bank and Vietnam Export Import Commercial Bank.
“By complementing banks’ capacity to deliver trade finance solutions, IFC has helped ensure continued trade flows vital to enterprise growth despite liquidity constraints,” said Simon Andrews, IFC Regional Manager for Vietnam, Cambodia, Lao PDR, and Thailand. “IFC’s partnership has also helped banks attract more trade lines from other foreign banks.”
QC
Vietnamese
