The Vietnam Maritime Commercial Joint Stock Bank (MSB) is set to receive a $40 million loan from the OPEC Fund for International Development (the OPEC Fund) to support small and medium-sized enterprises (SMEs).
The loan is intended to provide financing to at least 80 local businesses to help them grow and meet their critical needs, according to OPEC Fund.
Director-General of the OPEC Fund, Dr. Abdulhamid Alkhalifa, emphasized the importance of SMEs to the economy of Vietnam. He noted that they make up the majority of businesses and provide more than half of overall employment in the country. Alkhalifa also stressed the significance of systemic banks like MSB in providing financing to support local businesses and increase their access to global markets. This, in turn, promotes sustainable economic development and job creation.
MSB CEO, Mr. Nguyen Hoang Linh told Vietnam Insider that, the bank’s strategy is to promote the development of the SME sector as the main growth driver in the near future. The agreement with the OPEC Fund affirms their partnership and their efforts to promote financial access for SME clients, who have a high demand for capital to resume dynamic growth after the COVID-19 pandemic.
According to the Ministry of Finance, Vietnam has over 500,000 private firms, of which more than 95% are micro and small enterprises. Access to credit remains a major concern for these companies as their integration into global supply chains and finance was disrupted by the pandemic.
MSB, or the Vietnam Maritime Commercial Joint Stock Bank, was the first joint stock bank in Vietnam since 1991. With over 30 years of development, MSB operates in 51 cities and provinces of Vietnam, with 62 branches and 201 transaction offices, employing over 6,000 qualified staff.
The bank is listed on the Ho Chi Minh Stock Exchange since December 2020 and has total assets of over VND 212 trillion (~US$9 billion) and charter capital of VND 20 trillion (~US$851 million). MSB provides comprehensive banking and financial solutions for all customers in the economy, especially focusing on SME and retail lending. The bank’s long-term deposit and issuer ratings are “B1” by Moody’s, with a “Stable” outlook rating for the next 12-18 months.
The OPEC Fund for International Development (the OPEC Fund) is a global development institution that exclusively provides financing from member countries to non-member countries. Established in 1976, the organization works in cooperation with developing country partners and the international development community to promote economic growth and social progress in low- and middle-income countries around the world.
The OPEC Fund focuses on financing projects that meet essential needs, such as food, energy, infrastructure, employment (particularly relating to MSMEs), clean water and sanitation, healthcare and education. To date, the OPEC Fund has committed over US$24 billion to development projects in more than 125 countries with an estimated total project cost of US$190 billion. The OPEC Fund is highly rated by Fitch and S&P, with a vision of achieving sustainable development for all.
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Source: Vietnam Insider