ADB and HDBank Sign $100 Million Loan: Boosting Access to Finance for Vietnamese MSMEs and Women-Owned Businesses

Key Details of the Agreement

Loan Amount and Source

• $100 million from ADB's ordinary capital resources

Total Financing Mobilized

• $721 million — $100 million (ADB loan) + $621 million (syndicated from 29 commercial banks)

Minimum Share for Women-Owned Businesses

• At least 40% of ADB's financing must go to women-owned MSMEs (WMSMEs)

Use of Proceeds

• The funds support HDBank's medium- to long-term lending, which is on-lent to eligible MSMEs under HDBank's sustainable finance framework, with a focus on underserved segments

Partners Involved

• ADB — Lender and lead arranger
• HDBank — Borrower and on-lender
• Standard Chartered Bank (Singapore) Limited — Co-arranger
• 29 participating commercial banks — Provided syndicated financing

Capacity-Building Technical Assistance

• ADB will provide complementary technical assistance to help HDBank develop suitable financial products, promote inclusive finance, and support sustainable MSME growth

Why This Matters: The Role of MSMEs in Vietnam

MSMEs are the backbone of Vietnam’s economy. According to data from ADB and other sources, they account for:

• Over 97% of all registered enterprises
• Approximately 36% of total employment
• Roughly 40% of national GDP

Despite their critical role, many MSMEs—especially women-owned ones—face significant barriers to formal finance, including limited collateral and credit history . This loan agreement directly addresses this gap by earmarking a substantial portion of funds for women-led businesses.

The Broader Context

This agreement is part of ADB’s broader strategy to mobilize private capital for inclusive finance in Asia and the Pacific. ADB’s Country Director for Vietnam, Shantanu Chakraborty, emphasized that strengthening access to finance for MSMEs is crucial for Vietnam’s continued economic development . The deal also aligns with the Government of Vietnam’s Socio-Economic Development Strategy (2021-2030), which aims to have more than 2 million enterprises driving economic growth .

By reserving at least 40% of the loan for women-owned businesses, the agreement also supports gender equality goals. Women-owned MSMEs have been historically underserved by the formal banking sector, facing higher interest rates and stricter collateral requirements . This targeted allocation helps level the playing field.

Key Takeaways

• The $100 million ADB loan to HDBank is part of a $721 million total financing package.
• 29 commercial banks participated in the syndication, demonstrating strong private-sector confidence.
• At least 40% of the funds are reserved for women-owned micro, small, and medium-sized enterprises.
• The loan will be used for medium- to long-term lending under HDBank’s sustainable finance framework.
• Complementary technical assistance will help HDBank develop inclusive financial products.
• MSMEs are vital to Vietnam’s economy, making up over 97% of all enterprises and contributing ~40% of GDP.