(VNF) - The Asian Development Bank’s (ADB) Trade Finance Program (TFP) and two Vietnamese banks—An Binh Joint-Stock Bank (ABBank) and Tien Phong Commercial Joint Stock Bank (TPBank)— signed agreements enabling the program to provide guarantees of up to USD 50 million a year to support trade finance in Vietnam on May 24^th.

“Trade and trade finance are critical to the glabal and regional economy, in particular to small and medium-sized enterprises and job creation,” said Steven Beck, ADB’s Head of Trade Finance. “Our Trade Finance Program aims to help Vietnam and Vietnamese businesses expand trade opportunities, increase competitiveness, and promote trade-led inclusive growth.”

ADB's Steven Beck (L) shakes hands with Cu Anh Tuan, CEO of ABBank at the Hanoi ceremony on May 24^th.

ADB’s TFP has been operating in Vietnam since 2009. The new agreements add to 13 other existing bank partnerships in Vietnam under the program. To date, the program has conducted 5,814 transactions, supporting USD 8.2 billion in Vietnamese trade. Out of TFP’s total transaction in Vietnam, 67 per cent are related to small and medium-sized enterprises.

“This cooperation with the TFP will not only bring higher business effciency, but also create an opportunity for our bank to affirm its brand in the banking and financial market,” said Cu Anh Tuan, Chief Executive Officer of ABBank.

ABBank is one of the leading commercial join-stock banks and is among the top ten largest commercial banks in terms of charter capital in Vietnam. Its current charter capital exceeds VND 5,319 billion (about USD 234 million) and it has an extensive network of 164 transaction offices located in 34 provinces nationwide.

ADB's Steven Beck signs the agreements with Nguyen Hung, CEO of TPBank at the ceremony on May 24^th at Hanoi.

“Apart from the trade finance guarantee limit of USD 30 millon, ADB’s extensive network of banks and other financial institutions will provide great opportunitites for TPBank to expand its global partnerships,” Nguyen Hung, Chief Executive Officer of TPBank.

TPBank is one of the most dynamic commercial banks in Vietnam with total assets of around VND 106,000 billion (about USD 4.6 billion) and an extensive network of 55 branchs and transaction offices in Vietnam.

The Trade Finance Program’s loans and guarantees will be complemented by workshops and seminars to increase knowledge and expertise on trade finance, resulting in more support to exporting and importing companies in the country.

Backed by ADB's AAA credit rating, TFP provides guarantees and loans to over 200 partner banks to support trade, enabling more companies throughout Asia to engage in import and export activities. With dedicated trade finance specialists and a response time of 24 hours, the program has established itself as a key partner in the international trade community, providing fast, reliable, and responsive support to fill gaps in the region’s most challenging markets.

Since 2009, TFP has supported more than 9,200 small and medium-sized enterprises across the region, with about 13,000 transactions valued at over USD 25.5 billion, in sectors ranging from commodities and capital goods, to medical supplies and consumer goods./.

Minh Chau