The total commitments of the International Finance Corporation (IFC), a member of the World Bank Group, in Vietnam reached nearly US$1.9 billion for the fiscal year 2023, including $520 million earmarked in long-term finance.

The Southeast Asian country was among the top five countries in the Asia-Pacific region to benefit from the record amounts of long-term funding for the fiscal year ending June 30 despite overlapping crises and challenges, according to IFC.

IFC's investment and advisory programs addressed core challenges for Vietnam, including climate change, food security, trade barriers, and housing finance gaps, helping local companies recover from the COVID-19 pandemic and navigate challenging internal and external environments.

The majority of the $520-million long-term funding increased lending to small and medium enterprises, including women-owned businesses, and supported lower and middle-income homebuyers. 

IFC has invested in BaF, a livestock producer, and the retail chain GS25, along with a commodity-backed warehouse finance facility for TTC AgriS, helping strengthen agribusiness value chains and improve food security in Vietnam.

IFC also provided over $1.3 billion in short-term trade and supply chain finance to companies in Vietnam, particularly garment and agribusiness suppliers, enabling them to continue trading goods while retaining some 100,000 jobs.  

In line with the Vietnamese government's twin goals to become a high-income country by 2045 and achieve net-zero emissions by 2050, climate and sustainability have become a bigger focus for IFC engagements in Vietnam. 

Up to date, IFC has pledged over $900 million in long-term finance to support climate-related projects in the Southeast Asian nation.

"As businesses gradually recover from the pandemic while weathering uncertainties of ongoing global crises, it's the right time for the private sector to embark on a greener and more sustainable pathway of development to improve resilience and efficiency,” said Thomas Jacobs, IFC country manager for Vietnam, Cambodia, and Laos.

IFC has focused on facilitating climate business markets and building capacity for local businesses to grasp opportunities in the climate space. 

It has also supported the State Securities Commission of Vietnam to promote the adoption of environmental, social, and governance (ESG) standards and practices and to enforce ESG requirements among market players.

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