Canada’s bilateral Development Finance Institution, FinDev Canada, alongside Sumitomo Mitsui Banking Corporation (SMBC), and partner Development Finance Institutions (DFIs) and bilateral agencies, including British International Investment (BII), Export Finance Australia (EFA), and Japan International Cooperation Agency (JICA), have announced the successful signing of a $350 million loan to Vietnam Prosperity Joint Stock Commercial Bank (VPBank) to advance sustainable development in Vietnam.

FinDev Canada said in a statement on Wednesday that the $350 million loan, with a five-year maturity, serves as a significant funding source to support VPBank’s sustainable finance strategy focusing on three key pillars: social finance, green finance, and financing for essential infrastructure development.

This commitment further supports Vietnam’s national objectives to advance inclusive economic development, green growth, and infrastructure expansion.

FinDev Canada will contribute $75 million to VPBank as part of the syndicated loan facility, with at least 40 percent of the loan proceeds directed to climate finance initiatives, further supporting Vietnam’s commitment to achieving net-zero emissions by 2050, and helping the region mitigate and adapt to climate risks.

According to the statement, small businesses play a critical role in the country’s economy.

However, micro, small and medium-sized enterprises (MSMEs), particularly women-led enterprises, face significant challenges in accessing credit.

FinDev Canada will direct at least 40 percent of the loan proceeds to women-owned MSMEs.

Additionally, 100 percent of the loan proceeds will be aligned with the 2X Challenge criteria, a global standard for gender lens investing that promotes women’s economic empowerment, as VPBank supports gender equality within its operations through corporate initiatives, support programs, and human resource policies.

Working with international partners not only provides VPBank with access to a stable, long-term funding source, but also fosters broader strategic collaboration.

This creates opportunities to connect Vietnamese enterprises with global supply chains and international markets, particularly in the United Kingdom, Australia, Canada, and Japan – where these bilateral agencies maintain strong ties with local businesses, investors, and networks.

“Our investment in Vietnam’s green growth and sustainability agenda is a key part of our strategic priorities in the Indo-Pacific region,

“We are proud to work with VPBank in expanding funding for enterprises, particularly women-led ones, through this syndicated facility,” said Lori Kerr, Chief Executive Officer, FinDev Canada.

“By collaborating with committed partners, we aim to strengthen climate action, advance inclusive and sustainable development, and create lasting positive impact in Vietnam,” she added.

Meanwhile, Francesca Bellone, Chargé d’affaires, Embassy of Canada in Vietnam, said Canada is committed to catalyzing private capital to support Vietnam’s sustainable and inclusive development.

“FinDev Canada’s partnership with VPBank, centered on inclusivity, environmental sustainability, and climate action, deepens Canada’s impact investment footprint in Vietnam,

“We look forward to working with investors, entrepreneurs, and financial institutions to transform livelihoods, tackle the climate challenge, and generate sustainable financial returns,” she added.

Nguyen Duc Vinh, Chief Executive Officer, VPBank, said this successful funding from leading Development Finance Institutions and bilateral agencies reaffirms VPBank’s financial strength, long-term strategic vision and strong international reputation in sustainable finance.

“The facility will allow the Bank to expand its green and social lending portfolios while demonstrating a strong commitment to inclusive growth,

“It also supports Vietnamese enterprises – particularly women-led businesses – in their global expansion and helps improve the quality of life through essential infrastructure development,” he added.

With this support, VPBank will continue to direct capital to projects that bring positive environmental and social impacts, in line with its Sustainable Prosperity strategy guided by environmental, social, and governance (ESG) principles.

This is an important contribution in delivering on Vietnam’s sustainability commitments and the nation’s Net Zero target by 2050, said the statement.

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