HÀ NỘI — The Japan International Co-operation Agency (JICA) officially signed a loan agreement with Tiên Phong Commercial Joint Stock Bank (TPBank) under the Private Sector Investment Finance (PSIF) project on Tuesday.

This initiative, co-financed by the US International Development Finance Corporation (DFC), aims to enhance financial inclusion through digital banking in Việt Nam, with a total loan value of US$120 million.

The project seeks to improve financial access for micro, small and medium-sized enterprises (MSMEs) and low-income individuals in Việt Nam by providing loans to TPBank, a domestic commercial bank, to expand financial accessibility for these groups.

The loan will enable TPBank to extend credit to MSMEs and low-income individuals. Notably, at least 30 per cent of the loan value from JICA will be allocated to MSMEs through TPBank's digital banking channels. Additionally, at least 30 per cent will be directed to MSMEs owned by women or to female customers in low-income groups.

This project aligns with the UN's Sustainable Development Goals 8, 9 and 17, which focus on economic growth, industry, innovation and infrastructure, as well as partnerships.

The initiative is part of the Financial Access for Inclusive Finance mechanism established in May 2023, underscoring efforts to drive sustainable and inclusive economic development in Việt Nam. — VNS