Swedfund invests in MSME growth and climate action in Vietnam

Swedfund invests in MSME growth and climate action in Vietnam

Swedfund announced on December 18 an investment in Vietnamese EVF General Finance JSC (EVF) through a loan of up to $20 million.

EVF is a financial services provider for micro-, small-, and medium-sized enterprises (MSMEs). The loan will support access to capital for these companies, and parts of the proceeds are earmarked for climate action and women-owned enterprises.

Vietnam is one of Southeast Asia's fastest growing economies, with rapidly increasing energy demand and greenhouse gas emissions. Access to long-term finance remains limited, particularly for MSMEs. Through the loan, Swedfundprovides additional long-term financing that enables EVF to expand lending to under financed MSMEs while supporting climate related investments.

"With this investment, we particularly aim to boost climate action and women's participation in the economy. Of the loan, 40 per cent will go to climate projects, like renewable energy and climate mitigation, and 30 per cent will go to women-owned enterprises. In this way, we can both create decent jobs while contributing to a more sustainable and equal economy," said Jane Niedra, director of financial inclusion at Swedfund.

The loan was granted as part of a $40 million financing package arranged by OeEB and Swedfund.

EVF General Finance JSC, based in Hanoi, was founded in 2008 and is one of Vietnam's leading non-banking financial institutions. Under its general financial licence, EVF Finance offers a comprehensive range of financial services, including the granting of credit lines to MSMEs.

VIR