The International Finance Corporation (IFC), a member of the World Bank, has ratified a record loan of $505 million for the Global Trade Finance Program (GTFP) in the fiscal year 2011 so Vietnamese banks can help local firms boost foreign trade. The program, since its launch in Vietnam in late 2007, has helped improve the capacity of nine banks to cover the risks of granting trade finance to local companies, mostly small and medium-sized enterprises. The funds have also helped the businesses create jobs, the IFC said in a statement July 27. Under the program, the banks have issued 268 guarantees to support $1 billion in trade finance transactions. Lien Viet Bank, Orient Commercial Bank, Tien Phong Bank, and Vietnam International Bank all joined the program this year. IFC’s other partner banks in Vietnam are An Binh Bank, Asia Commercial Bank, Saigon Thuong Tin Commercial Bank and Vietnam Export Import Commercial Bank. The statement quoted Simon Andrews, IFC Regional Manager for Vietnam, Cambodia, Lao PDR, and Thailand, as saying that “IFC’s partnership has helped banks attract more trade lines from other foreign banks.”
Meanwhile, Do Diem Hong, Executive Vice President of Techcombank, said the programhas helped the bank “deliver trade finance for local importers and exporters over the past few years when trade lines have been limited.”
Techcombank, an IFC partner since 2007, has been the program’s largest user in Vietnam.
Being Vietnam’s second most profitable joint stock bank in 2010, Techcombank was voted “Best Bank”, “Best Cash Management Bank” and “Best Trade Finance Bank” by FinanceAsia, Asia’s leading publication on finance and banking. (www.ifc.org [1] Jul 20, Dan Viet – National Land Jul 24)
