The Asian Development Bank’s (ADB) Trade Finance Program (TFP) and two Vietnamese banks - An Binh Joint-Stock Bank (ABBANK) and Tien Phong Commercial Joint-Stock Bank (TPBank) today signed agreements enabling the program to provide guarantees of up to $50 million annually to support trade finance in Viet Nam.
“Trade and trade finance are critical to the global and regional economy, in particular to small and medium-sized enterprises and job creation," said Steven Beck, ADB’s Head of Trade Finance. "Our Trade Finance Program aims to help Viet Nam and Vietnamese businesses expand trade opportunities, increase competitiveness, and promote trade-led inclusive growth.”
“This cooperation with the TFP will not only bring higher business efficiency, but also create an opportunity for our bank to affirm its brand in the banking and financial market,” said Cu Anh Tuan, Chief Executive Officer of ABBANK. “The signing with the TFP marks the start of a positive development and close relationship between ADB and ABBANK in developing our banking services. We hope for ADB’s continued trust and support to further promote trade development between Viet Nam and other countries.”
ABBANK is one of the leading commercial joint-stock banks and is among the top ten largest commercial banks in terms of charter capital in Viet Nam. ABBANK’s current charter capital exceeds VND 5,319 billion (about $234 million) and it has an extensive network of 164 transaction offices located in 34 provinces nationwide.
"Apart from the trade finance guarantee limit of $30 million, ADB's extensive network of banks and other financial institutions will provide great opportunities for TPBank to expand its global partnerships,"said Nguyen Hung, Chief Executive Officer of TPBank. “The guarantee limit from ADB shall be used to support Vietnamese small and medium-sized enterprises to optimize their businesses so they can contribute to Viet Nam’s economic growth."
TPBank is one of the most dynamic commercial banks in Viet Nam with total assets of around VND106,000 billion (about $4.6 billion), about 4,000 employees, and an extensive network of 55 branches and transaction offices in Viet Nam. TPBank has been a pioneer in setting trends in modern banking services and aims to become the leading digital bank in Viet Nam. Currently, with more than 1.5 million individual customers and businesses, TPBank has been asserting its position as a strong, sustainable and healthy bank in Viet Nam.
To date, TFP has supported $8.2 billion in trade through 5,814 transactions covering both guarantees and direct funding in Viet Nam. Out of TFP’s total transactions in Viet Nam, 67% are related to small and medium-sized enterprises. TFP is currently working with commercial banks in Viet Nam and, with today’s signing, this will increase to 13 commercial banks.