The OPEC Fund for International Development is providing a $35-million loan to help small businesses in Vietnam, official sources have said.
The amount will reportedly be given to the Vietnam-based Southeast Asia Commercial Joint Stock Bank (SeABank).
The money will then apparently be used to facilitate access to finance for small and medium enterprises (SMEs) and women-owned businesses, and to promote climate funding for a sustainable economic recovery in Vietnam.
The financing is part of the OPEC Fund’s Covid-19 response, and is expected to help bridge the funding gap for SMEs as well as contribute to environmental sustainability.
OPEC Fund Director-General Abdulhamid Alkhalifa was quoted by the official sources as saying, “We are pleased to partner with SeABank and join forces with international lenders to provide financing to support Vietnam’s sustainable economic growth. Increasing access to finance for SMEs, especially women-owned businesses, will help reduce inequalities in line with the Sustainable Development Goals.”
SMEs are said to account for 98 percent of all enterprises and 50 percent of employment in Vietnam.
They are often considered the backbone of the country’s economy.
Women-owned businesses have been disproportionately affected by the Covid-19 pandemic due to reduced access to financial services.
Business interruptions resulting from obligations such as childcare during lockdowns are also to blame.