Hanoi, Vietnam, August 15, 2013—IFC,
a member of the World Bank Group, has invested around $805 million in Vietnam
during the 2013 fiscal year to help expand lending to small and medium
enterprises, create jobs and spur growth as the country’s economy slowed
and companies found it challenging to obtain financing.
Vietnam’s economy is experiencing its longest spell of slow growth since
the onset of economic reforms in the late-1980s, growing just 5 percent
in the second quarter from the same period last year. Many enterprises
have cited high borrowing costs as a key factor in shutting down or declaring
bankruptcies. To improve access to finance, IFC’s Global Trade Finance
Program has helped Vietnamese banks increase lending to local exporters
and importers, facilitating cross-border trade that is vital to private
During the 2013 fiscal year, which ended on June 30, IFC’s trade finance
program enabled participating banks to issue 155 guarantees to support
more than $800 million in trade finance, making Vietnam one of IFC’s top
markets in this field.
“After operating in Vietnam for more than 15 years, we have confidence
in the country’s long-term economic prospects and have remained fully
committed to supporting its growth during difficult periods,” said Karin
Finkelston, IFC Vice President for Asia Pacific. “Looking forward, we
will focus our efforts on helping accelerate necessary structural reforms
in the state-owned enterprises and in the banking sector, in order to see
Vietnam’s economy maintain its competitiveness and return to more robust
With its global expertise, IFC will help banks improve their ability to
manage and recover non-performing loans as well as achieve international
standards of risk management and corporate governance. This will help them
run more efficiently so that the private sector, particularly small and
medium enterprises, can get financing at a lower cost.
To promote low-carbon economic growth, IFC ramped up efforts to improve
energy efficiency in Vietnam’s industries. With IFC’s financial and advisory
support, two Vietnamese lenders – Techcombank and VietinBank – have increased
their lending to energy-efficiency projects to more than $60 million over
the last three years. IFC is also supporting the Ministry of Construction
in revising the Building Energy Efficiency Code that aims to reduce up
to 15 percent of energy consumption per square meter in new buildings.
IFC’s total investments in East Asia Pacific reached a record $3.4 billion
in 83 projects during the 2013 fiscal year, up around 15 percent from the
previous fiscal year. Vietnam ranked second after China in terms of IFC
investment volume in East Asia Pacific.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in more than 100 countries, we use our capital, expertise,
and influence to help eliminate extreme poverty and promote shared prosperity.
In FY13, our investments climbed to an all-time high of nearly $25 billion,
leveraging the power of the private sector to create jobs and tackle the
world’s most pressing development challenges. For more information, visit