OPEC Fund extends US$35 million loan to Vietnam to support SMEs

OPEC Fund extends US$35 million loan to Vietnam to support SMEs

VIENNA, 19th January, 2022 – The OPEC Fund is providing a US$35 million loan to Southeast Asia Commercial Joint Stock Bank (SeABank) 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 will help bridge the funding gap for SMEs as well as contribute to environmental sustainability.

OPEC Fund Director-General Abdulhamid Alkhalifa commented, “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.

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SMEs account for 98 percent of all enterprises and 50 percent of employment in Vietnam and are 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 and business interruptions resulting from obligations such as childcare during lockdowns.

OFID was established in January 1976 by the then 13 member countries of OPEC; including the United Arab Emirates.

It is the development finance institution established as a channel of aid to developing countries.