IFC, the World Bank's private sector lending arm, has expanded a finance line for Vietnam International Bank (VIB) that would allow the lender to help local companies increase trade, generate foreign exchange and create jobs.
Under its global trade finance program, IFC has increased VIB's trade finance line to US$30 million at a time when global liquidity is tightening, according to a joint statement.
VIB joined the program, which was launched in Vietnam in 2007, last May. Since then the bank has been able to expand its trade-finance products to small and medium enterprises in key export and import sectors, the statement said.
"A trade line expansion under IFC's Global Trade Finance Program will help VIB considerably improve our capacity to cover the payment risk in granting trade financing to local companies, mostly small and medium enterprises, especially when trade lines are limited," said Duong Thi Mai Hoa, CEO of VIB.
"As part of the program's extensive network of more than 400 participating banks, VIB will be recognized globally, helping increase our access to new markets," she said.
The new support is an example of how IFC can work with local banks to promote trade flows vital to enterprise growth despite liquidity constraints, said Simon Andrews, IFC Regional Manager for Vietnam, Cambodia, Lao PDR, and Thailand.
"This also shows our commitment to strengthen and foster the development of the Vietnamese financial market," Andrews said.