ADB Backs HDBank With $100 Million to Boost MSME Lending in Viet Nam

ADB Country Director for Viet Nam Shantanu Chakraborty said expanding access to finance for MSMEs, especially businesses owned by women, is essential for building a stronger and more resilient economy.

The Asian Development Bank (ADB) has signed a $100 million loan with Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) to improve access to finance for micro, small and medium-sized enterprises (MSMEs) in Viet Nam, with a strong focus on supporting women-owned businesses that often struggle to secure formal credit.

Funding package expands support for small businesses

The financing forms part of a much larger funding package arranged by ADB and Standard Chartered Bank (Singapore) Limited. Alongside its own loan, ADB helped mobilise an additional $621 million from 29 commercial banks, significantly increasing the financial resources available to HDBank. ADB said the transaction strengthens HDBank's access to international capital while demonstrating how development finance institutions can attract private investment to support economic growth and financial inclusion.

ADB Country Director for Viet Nam Shantanu Chakraborty said expanding access to finance for MSMEs, especially businesses owned by women, is essential for building a stronger and more resilient economy.

Women-owned businesses to receive dedicated support

At least 40 percent of ADB's financing will be directed to women-owned micro, small and medium-sized enterprises (WMSMEs), creating greater opportunities for female entrepreneurs who continue to face significant barriers when seeking loans.

Many small businesses in Viet Nam struggle to obtain financing because they have limited collateral, short credit histories or are considered higher-risk borrowers by lenders. These challenges are particularly common among women-led enterprises, limiting their ability to expand operations, invest in equipment or create new jobs.

The loan proceeds will support HDBank's medium- and long-term lending programmes and will be provided to eligible businesses under the bank's sustainable finance framework, helping extend financial services to underserved sectors of the economy.

Partnership supports inclusive economic growth

ADB will complement the financing with technical assistance designed to help HDBank develop financial products tailored to the needs of smaller businesses while strengthening financial inclusion across Viet Nam. HDBank Chief Executive Officer Nguyen Huu Dang said the partnership will allow the bank to expand lending to MSMEs while reinforcing its commitment to supporting women entrepreneurs and promoting sustainable finance.

MSMEs play a central role in Viet Nam's economy, representing more than 97 percent of registered businesses, employing around 36 percent of the workforce and contributing roughly 40 percent of the country's gross domestic product. By improving access to financing, ADB and HDBank hope to help these businesses grow, create jobs and contribute more strongly to the country's long-term economic development.