Hanoi, Vietnam, December 21, 2011
—IFC, a member of the World Bank Group, has expanded a trade finance line for Vietnam International Commercial Joint Stock Bank that would allow the bank to help local companies increase trade, generate foreign exchange, and create jobs.
Under its Global Trade Finance Program, IFC has increased VIB’s trade finance line sixfold to $30 million at a time when global liquidity is tightening. Since joining the program in May 2011, VIB has been able to expand its trade finance products to small and medium enterprises in key export and import sectors.
“A trade line expansion under IFC’s Global Trade Finance Program will help VIB considerably improve our capacity to cover the payment risk in granting trade financing to local companies, mostly small and medium enterprises, especially when trade lines are limited,” said Duong Thi Mai Hoa, Chief Executive Officer of VIB. “As part of the program’s extensive network of more than 400 participating banks, VIB will be recognized globally, helping increase our access to new markets.”
VIB is one of the newest Vietnamese banks to join the program since its launch in Vietnam in 2007.
“IFC’s continued support to VIB is an example of how we can work with local banks to promote trade flows vital to enterprise growth despite liquidity constraints,” said Simon Andrews, IFC Regional Manager for Vietnam, Cambodia, Lao PDR, and Thailand. “This also shows our commitment to strengthen and foster the development of the Vietnamese financial market.”
Since its inception in 2005, IFC’s award-winning Global Trade Finance 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. The program includes more than 200 partner banks in more than 90 emerging-market countries. In fiscal year 2011, 53 percent of the total volume went to support trade in the world’s poorest countries and 79 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 VIB
Vietnam International Commercial Joint Stock Bank, abbreviated as Vietnam International Bank (VIB), was established on September 18,1996. By September 2011, after 15 years of operation, VIB has become one of the top commercial joint stock banks in Vietnam with the total asset of more than 100,000 billion dong (more than $5 billion). Currently, VIB has more than 4,000 staff serving more than one million customers in 150 branches and transaction offices in 27 key provinces/cities throughout the country. For more information, visit
www.vib.com.vn
