ADB Channels $100 Million to HDBank for Vietnamese Small Businesses

The deal functions as a catalyst for a broader $721 million funding package, which includes $621 million mobilized from 29 international commercial banks. By leveraging its own capital, the ADB is effectively bridging the gap between private lenders and local businesses that typically struggle with traditional collateral requirements or thin credit histories.

At least 40 percent of the ADB-backed funding is earmarked for women-led enterprises. According to Shantanu Chakraborty, ADB Country Director for Viet Nam, this focus is critical for fostering economic resilience. Beyond the capital injection, the ADB will provide technical assistance to help HDBank refine its financial products for the underserved market. HDBank CEO Nguyen Huu Dang noted that this partnership strengthens the institution's capacity to drive sustainable finance throughout the country.

Small businesses account for over 97 percent of all registered firms in Viet Nam, employing more than a third of the national workforce. By targeting this sector, the initiative aims to unlock growth for businesses that provide 40 percent of the country's gross domestic product but often remain sidelined by conventional lending standards.