Local credit institutions to benefit from cooperation between AFD and ADFIAP

The French Development Agency (AFD - Agence Française de Développement) and the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) recently signed a partnership agreement to advance the Paris Agreement and the Sustainable Development Goals in the region.

According to representatives from the two agencies, with a huge population, within just a few decades Asia has become a locomotive of global economic growth. But the development of Asia and the Pacific and the socio-environmental challenges associated with this development are enormous.

The consequences of the development process, especially the ecological consequences, therefore need to be dealt with through a regional approach.
In the face of such challenges, development banks play a central role, as they provide funding to strategic fields while also playing a countercyclical role in times of crisis. To support banks, the AFD and the ADFIAP have decided to combine their resources within the framework of a partnership to strengthen the capacity of ADFIAP members, through program training, enabling the better implementation of green financial practices.

In Vietnam, five credit institutions - the Ba Ria-Vung Tau Investment and Development Fund, the Khanh Hoa Investment and Development Fund, the Quang Nam Investment and Development Fund, the Thanh Hoa Investment and Development Fund, and the Vietnam Development Bank - are members of the ADFIAP and can benefit from the program.

The new partnership will also allow the AFD to become a member of the ADFIAP, facilitating exchanges with other members and possibly implementing new funding opportunities.

“We are delighted about signing a partnership with such a major player in the region’s development as ADFIAP,” said Mr. Yazid Bensaïd, AFD’s Southeast Asia Regional Director. “Green finance is one of the biggest players in the region and a key tool assisting its transition.”