TPBank secures $220 million loan from DFC and JICA

Tien Phong Commercial Joint Stock Bank (TPBank) has signed a $220 million long-term loan agreement with the US International Development Finance Corporation (DFC) and the Japan International Cooperation Agency (JICA). The loan, formalized at a ceremony on January 14 in Hanoi, is part of TPBank's strategy to enhance its digital financial services and support micro, small, and medium enterprises (MSMEs), women-led businesses, and low-income groups in Vietnam.

The funding consists of $100 million from DFC and $120 million from JICA. It will be used to implement financial programs aimed at boosting production capacity and competitiveness for MSMEs and providing greater access to financing in underserved areas. A portion of the funds is earmarked for projects led by women or initiatives with positive impacts on women's communities, aligning with broader goals of gender equality and economic inclusion.

TPBank has also indicated plans to use the loan to advance its digital financial products. These efforts are intended to bridge gaps in financial access, particularly in remote areas where traditional banking services remain limited. By expanding its digital lending capabilities, the bank aims to make financial services more accessible and efficient for customers.

Mr. Do Anh Tu, Vice Chairman of TPBank’s Board of Directors, highlighted the bank's priorities in supporting underrepresented groups and fostering sustainable development. “Committed to sustainable development, TPBank places great emphasis on supporting MSMEs, women-led businesses, and low-income communities. This loan presents a significant opportunity for TPBank to drive economic growth and contribute to the country’s sustainable development goals. We will continue to expand digital financial products and enhance financial accessibility, directly benefiting our customers and the economy,” he said.

Representatives from DFC and JICA emphasized the importance of the partnership in promoting financial inclusion and supporting Vietnam’s digital transformation.

Ms. Maria Goravanchi, Managing Director of DFC’s Lower Mekong Region, commented: “DFC is honored to collaborate with TPBank in expanding digital financial access for financially challenged enterprises, particularly women-led businesses and low-income customers in Vietnam. Through this transaction, we aim to unlock essential capital for small enterprises, fostering sustainable and inclusive development. This aligns with DFC's mission to support small businesses and create practical solutions contributing to long-term economic growth.”

Mr. Yuichi Sugano, Chief Representative of JICA Vietnam Office, shared similar sentiments, noting the potential impact on Vietnam’s financial ecosystem. “We firmly believe this project will enhance financial inclusion for MSMEs and low-income individuals in Vietnam. TPBank’s digital financial products will play a vital role in advancing the effectiveness of Vietnam’s strategies and policies. Furthermore, this initiative is expected to make a positive impact, accelerating the digital transformation of Vietnam’s financial sector overall.”

The $220 million loan marks a significant step in TPBank's efforts to enhance its services and address gaps in financial accessibility in Vietnam. By leveraging international funding and partnerships, the bank aims to create new opportunities for businesses and individuals while contributing to broader economic growth and sustainability goals.