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Ho Chi Minh City, Vietnam, January 16, 2012
—IFC, a member of the World Bank Group, has expanded a trade finance line for LienVietPostBank, allowing the bank to further help small and medium enterprises in Vietnam sustain import and export activities and create jobs despite tighter global credit markets.
LienVietPost Bank's trade finance line under IFC's Global Trade Finance Program has now quadrupled to $20 million. Since joining the program in May 2011, LienVietPostBank has expanded its trade-finance products to small and medium businesses in key export and import sectors, particularly in the Mekong Delta.
“The initial modest trade line of $5 million was used up right after one month,”
said Nguyen Thi Thanh Son, LienVietPostBank’s Deputy CEO. “We believe that the new expanded trade line will enable us to satisfy the increasing demand of import – export enterprises in difficult economic times and help LienVietPostBank gain a firm foothold in the global market.”
Since its inception in 2005, IFC’s award-winning program has issued more than 10,000 guarantees totaling $14.3 billion to banks on trade-related payment obligations of its financial institution clients in emerging markets. The program extends and complements the capacity of banks to deliver trade finance for importers and exporters on a per-transaction basis in markets where trade lines may be limited. LienVietPostBank is among more than 200 issuing banks in over 90 emerging markets covered by the program.
“By complementing LienVietPostBank’s capacity to deliver trade finance solutions, IFC is helping ensure continued trade flows vital to enterprise growth despite liquidity constraints,” said Aliou Maiga, IFC Financial Markets Manager for East Asia and the Pacific. “LienVietPostBank's participation in our Global Trade Finance Program marks the first steps of our partnership with the bank to expand access to finance for small and medium enterprises in Vietnam, a key growth engine for the economy.”
In fiscal year 2011, more than half of the total volume of the program went to support trade in the world’s poorest countries and nearly 80 percent went to small and medium enterprises.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
www.ifc.org
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About LienVietPostBank
LienVietPost Commercial Joint Stock Bank, abbreviated as LienVietPostBank, received a banking license in 2008 and is one of Vietnam's newest banks. In 2011, the bank merged with Vietnam Postal Savings Company and received exclusive rights to take deposits and deploy services using VPSC's network of more than 11,000 branches and transaction offices nationwide. This merger has put LienVietPostBank among the top five banks with the largest network in Vietnam. For more information, visit
www.lienvietpostbank.com.vn
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