Launch of $5 million technical assistance project to improve financial inclusion in Vietnam

The Asian Development Bank (ADB) and the State Bank of Vietnam (SBV) today (October 25) held a launching ceremony to mark the implementation of a $5 million technical assistance (HTKT) project, funded by the Swiss Government, to develop financial technologies (fintech) to improve financial inclusion in Vietnam. The event was witnessed by a high-level delegation from the Swiss State Secretariat for Economic Affairs (SECO).

This grant, together with a $2 million contribution from the Japan Foundation for Prosperity and Resilience in Asia and the Pacific (JFPR), funded by the Government of Japan, will support the expansion of climate finance and financial inclusion in Vietnam.

Financial barriers in Vietnam extend beyond individuals and particularly affect micro and small and medium-sized enterprises (MSMEs). Women-owned SMEs are even more negatively affected, with an estimated financing gap of US$1.2 billion. The TA project therefore plays a key role in supporting increased access to finance for SMEs, and women-owned enterprises in particular. This will be done by supporting the SBV in developing and implementing a legal framework to strengthen the digital finance sector, ensuring safe market operations and a thriving ecosystem.

“ The State Bank of Vietnam highly appreciates this technical support and considers it one of the very important supports to help create a favorable environment for the development of fintech to improve the quality and diversify the provision of financial products and services to people and businesses, thereby actively contributing to promoting national financial inclusion,” said Deputy Governor of the State Bank of Vietnam Pham Tien Dung. “The technical support also contributes significantly to promoting green growth through the development and contribution of green banks and green credit.”

“In Vietnam, fintech is key to promoting convenient and innovative financial solutions and services to reach unbanked and underbanked segments of the population, including small and medium-sized enterprises, while improving efficiency and financial security,” said ADB Country Director for Vietnam Shantanu Chakraborty. “Following our previous fruitful collaboration with SBV, we are excited to further accelerate the digital banking transformation in a rapidly growing market like Vietnam.”

The TA project will provide training opportunities on fintech and green banking best practices for SBV staff, with a target of 25% women participation, and provide advisory services to women-owned SMEs in preparing green loan applications. In addition, the TA project will build capacity for relevant government agencies and members of banking and fintech associations, and support selected commercial banks in developing digital banking.

“This technical assistance programme further expands Switzerland’s comprehensive support to strengthen and deepen Vietnam’s financial sector. By strengthening Vietnam’s fintech sector and promoting the digitalization of the banking sector, the programme offers new opportunities for SMEs to improve their access to finance,” added Swiss State Secretary and SECO Economic Development Cooperation Dominique Paravicini.

Based in Bern, SECO is the Swiss Confederation's centre of expertise for all key economic policy issues, including economic cooperation and development. It implements Switzerland's economic and trade policy measures for the benefit of developing countries. SECO's mission is to facilitate sustainable economic growth and prosperity in its partner countries.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

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