IFC prioritises job creation and trade flow in Việt Nam in a record year for Asia-Pacific region

Wednesday, Sep 06, 2023 16:58

Workers at a production line at An Phú Việt JST company, a supplier of plastic details for global brands. — Photo courtesy of IFC

Việt Nam led the way as one of the top five beneficiaries of the International Finance Corporation's (IFC) long-term investments in the Asia-Pacific region for the fiscal year ending June 30, 2023, amid a backdrop of numerous challenges and crises faced by the Asia-Pacific region. This support greatly benefited climate initiatives, small enterprises, women entrepreneurs, and farmers.

During FY2023, IFC committed nearly US$1.9 billion to Việt Nam, with $520 million earmarked for long-term finance. These funds targeted core issues, including climate change, food security, trade barriers and housing finance gaps, aiding local businesses in recovering from the pandemic and navigating challenging conditions.

The bulk of the long-term funding was directed towards thousands of small-and medium-sized enterprises, particularly those led by women, and assisted lower and middle-income individuals in securing homes. This resulted in job creation and economic growth. Noteworthy investments included support for BaF, a prominent livestock producer, and GS25, a leading retail operator, alongside a commodity-backed warehouse finance facility for TTC AgriS, bolstering agribusiness and food security.

IFC also provided over $1.3 billion in short-term trade and supply chain finance, preserving around 100,000 jobs in Việt Nam, especially in garment and agribusiness sectors.

Reflecting Việt Nam's goal of becoming a high-income nation by 2045 and achieving net-zero emissions by 2050, IFC placed a strong emphasis on climate and sustainability. It has committed over $900 million in long-term finance to support climate-related projects in the country.

Thomas Jacobs, IFC Country Manager for Việt nam, Cambodia and Lao PDR, stressed the importance of a greener and more sustainable private sector to enhance resilience and efficiency.

IFC's advisory programme in Việt Nam focused on enabling climate-focused business markets, promoting green policies, and supporting decarbonisation in heavy industries. It also collaborated with the State Securities Commission to enforce ESG standards, harnessing the capital market to combat climate change through sustainable finance.

Across the Asia-Pacific region, IFC allocated a record $11 billion to 108 projects in FY2023, a 10 per cent increase from the previous year. This funding included resources for long-term financing, mobilisation and short-term trade and supply chain finance, fostering regional economic growth and sustainability. — VNS

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