Hanoi, Vietnam, March 21, 2023—Saigon-Hanoi Commercial Joint Stock Bank (SHB) is the latest Vietnamese bank to join IFC in expanding access to finance for small and medium enterprises (SMEs), especially women-owned businesses.
Under a new deal, IFC is providing a $40 million loan - the first phase of an overall planned $120 million financing package, to help the bank be able to provide more support for local enterprises and boost their participation in the global supply chain.
More than one third of the funding will be exclusively targeted for women-owned SMEs, with support from the Women Entrepreneurs Opportunity Facility (WEOF) and the Women Entrepreneurs Finance Initiative (We-Fi) through a performance-based incentive, which encourages financial institutions to provide financing to women-owned small businesses.
IFC's investment is expected to help SHB more than double the number of SME loans as well as the outstanding loan volume for women-owned businesses by 2025. While SMEs are critical to Vietnam's economy, generating 40 percent of gross domestic product (GDP) and 50 percent of jobs, they are having difficulty accessing finance, with about 62 percent of total SME financing needs unmet. An IFC study estimates Vietnam's financing gap for SMEs is around $21.7 billion.
"We believe that with timely support policies and solutions, and capital flows like this package from IFC, SMEs will be able to unlock their potential, expanding production and pursuing sustainable development," said Ngo Thu Ha, SHB Chief Executive Officer. "With support from IFC and international lenders, SHB will be able to further strengthen its solid foundation and buffer, grow stably and sustainably, and comply with international standards."
"We are pleased to continue to empower female entrepreneurs to accelerate growth and recharge their businesses through access to capital," said Charlotte Keenan, Global Director of Goldman Sachs 10,000 Women. "We look forward to supporting SHB as it expands lending to women-owned businesses in Vietnam."
Notably, about one fifth of the financing package will be on-lent to SMEs participating in supply chains. This complements IFC's ongoing advisory support to help SHB scale up its SCF business – a new segment in the local market which offers efficient and lower-cost financing solutions to suppliers participating in supply chains.
"It's vital that smaller businesses and especially those owned by women, are supported and able to access the funding they need to grow and expand their businesses," said Thomas Jacobs, IFC Country Manager for Vietnam, Cambodia and Lao PDR. "Our new partnership with SHB will help the bank strengthen its core business of serving smaller enterprises and allow those businesses to benefit from financing to link in with global supply chains, a move that will ultimately contribute to economic growth and job creation in Vietnam."
IFC is also working with international lenders to mobilize a $50 million financing package to further improve SHB's capacity in SME lending. A $75 million trade guarantee line under the IFC's Global Trade Finance Program (GTFP) is expected to be provided to SHB in the coming months. IFC will also advise SHB to improve its risk management and environmental, social and governance (ESG) standards.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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About We-Fi
The Women Entrepreneurs Finance Initiative (We-Fi) is a collaborative partnership among the 14 governments that have made financial contributions, six multilateral development banks that serve as implementing partners, and other public and private stakeholders. We-Fi was formally established in October 2017 as a Financial Intermediary Fund hosted by the World Bank. We-Fi invests in programs and projects that help unlock billions of dollars in financing to address the full range of barriers facing women entrepreneurs—increasing access to finance, markets, technology, and mentoring, while strengthening policy, legal and regulatory frameworks. As one of the We-Fi Implementing Partners, IFC supports private sector clients with investment and advisory services to expand financial services and market access for women-owned/led firms, as well as increasing the capacity of women entrepreneurs to run high-growth businesses. For more information, visit www.we-fi.org.
About Goldman Sachs 10,000 Women
Goldman Sachs 10,000 Women is an ongoing initiative to foster economic growth by providing women entrepreneurs around the world with a business and management education and access to capital. The initiative has reached over 200,000 women from over 150 countries. In partnership with the International Finance Corporation (IFC), Goldman Sachs 10,000 Women launched the first-of-its-kind global finance facility in 2014 to enable access to capital to more women entrepreneurs. The 10,000 Women in-person business education program was launched in 2008, reaching over 10,000 women across 15 countries around the world, and in 2018, the 10,000 Women curriculum was made available online through Coursera, further democratizing access to a business education in more corners of the world. For more information on Goldman Sachs' investment in female entrepreneurs, visit: https://www.goldmansachs.com/citizenship/10000women/
About SHB
SHB has achieved impressive business results over the past few years, maintaining its position in Top 5 largest private commercial banks in Vietnam, Top 10 most prestigious commercial joint stock banks in Vietnam, and Top 50 best enterprises in Vietnam. SHB currently has more than 530 domestic and foreign transaction points, serving more than 5 million individual and corporate customers and connecting to 500 correspondent banks across continents. For more information, visit www.shb.com.vn.
