ADB, BIDV Sign $250m Deal to Boost Climate-Smart Farming, Women’s SMEs in Viet Nam

The collaboration represents a major step toward scaling up sustainable agricultural practices, supporting rural development, and fostering inclusive economic growth that empowers women entrepreneurs.

The Asian Development Bank (ADB) and the Joint Stock Commercial Bank for Investment and Development of Viet Nam (BIDV) have signed a US$250 million syndicated finance package designed to strengthen climate-resilient agriculture and expand access to finance for women-owned small and medium-sized enterprises (WSMEs) across Viet Nam.

The collaboration represents a major step toward scaling up sustainable agricultural practices, supporting rural development, and fostering inclusive economic growth that empowers women entrepreneurs.

A Blended and Mobilized Finance Package

The financing package brings together a mix of multilateral, concessional and commercial capital, including:

• US$100 million from ADB's ordinary capital resources

• US$20 million from the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA)

• US$50 million syndicated parallel loan from the Japan International Cooperation Agency (JICA)

• US$80 million in syndicated commercial loans from Cathay United Bank, CTBC Bank Singapore, and Taipei Fubon Commercial Bank

As the mandated lead arranger and bookrunner, ADB structured and coordinated the financing, successfully mobilizing private capital into a sector crucial for Viet Nam's long-term development.

"This transaction represents an important milestone in ADB's partnership with BIDV and in promoting climate-smart, inclusive growth in Viet Nam's agriculture sector," said ADB Country Director Shantanu Chakraborty. "By blending commercial and concessional capital, the project will strengthen BIDV's capacity to support farmers, agribusinesses, and women entrepreneurs as Viet Nam transitions to a green and resilient economy."

Agriculture at the Heart of Viet Nam's Economic Future

Agriculture remains a cornerstone of Viet Nam's economy, employing around 45% of the labor force and contributing significantly to exports. Yet the sector is highly vulnerable to:

• fragmented production methods

• limited technology adoption

• drought, flooding and intensifying climate risks

• increased competition in global markets

To meet its ambition of becoming one of the world's top 15 agricultural exporters by 2030, Viet Nam will require an estimated US$100 billion in investment to scale climate resilience, lower emissions, and strengthen competitiveness.

Targeting Green Growth and Rural Inclusion

Through this newly signed facility, BIDV will extend sub-loans to agribusinesses involved in:

• sustainable farming practices

• climate adaptation and climate-smart technologies

• efficient water, soil, and resource use

• environmentally responsible value chains

The package will also help BIDV develop green and inclusive financial products, enhance agricultural credit assessment tools, and expand lending to women-owned SMEs, including those operating in remote and rural regions traditionally underserved by commercial banks.

"This partnership demonstrates our shared commitment to advancing Viet Nam's development goals," said BIDV Executive Vice President Pham Vu Thien Nga. "With support from ADB, JICA, CANPA, and commercial lenders, BIDV will expand sustainable agricultural models and increase access to finance for women and rural business owners."

Technical Assistance to Strengthen Capacity and Gender Inclusion

The financing package is complemented by a robust technical assistance programme aimed at:

• strengthening BIDV's environmental and risk management capacity

• enhancing staff and client skills to identify sustainable agriculture investment opportunities

• raising awareness of sustainable agriculture finance across the sector

Through the Women Entrepreneurs Finance Initiative (We-Fi), the project will also support the creation of gender-responsive financial products, introduce a sex-disaggregated management information system, and conduct a gender assessment of BIDV's policies and services to improve equality in financial inclusion.

CANPA: A Key Contributor to Climate and Nature Solutions

Established in 2024 and supported by Can$360 million from the Government of Canada, CANPA is an ADB-managed trust fund that builds on the experience of earlier Canadian climate funds. CANPA supports private-sector projects in Asia and the Pacific that advance:

• climate resilience

• nature-based solutions

• low-carbon pathways

• gender equality