Nam A Bank joins IFC trade programme in strategic partnership

Nam A Bank joins IFC trade programme in strategic partnership

Nam A Commercial Joint Stock Bank has established a strategic partnership with the International Finance Corporation, marking a significant step in its international expansion.

The signing took place during the Global Trade Partners Meeting, hosted by International Finance Corporation (IFC) in Lisbon from March 24 to 26.

Tran Khai Hoan, acting general director of Nam A Bank (left), and IFC senior representatives at the signing ceremony

As one of the premier global financial events, the conference brought together delegates from 57 countries representing more than 130 organisations worldwide.

The signing was witnessed by Vietnam's Ambassador to Portugal, Nguyen Manh Thang, whose presence underscored Vietnam's commitment to building a dynamic and transparent economy while facilitating sustainable green capital flows as the government pursues its Net Zero target by 2050.

By joining the IFC's Global Trade Finance Programme (GTFP), Nam A Bank becomes part of a prestigious network designed to connect banks in emerging markets with a vast global banking network.

Membership of the GTFP enables Nam A Bank to act as a vital bridge for Vietnamese import-export businesses, helping them mitigate payment risks, access stringent international markets, optimise borrowing costs, and scale global operations.

Furthermore, the bank will focus on expanding trade finance limits to provide a powerful financial catalyst for the business community, particularly small- and medium-sized enterprises, allowing local firms to integrate deeper into global value chains.

"Becoming a member of the GTFP affirms Nam A Bank's reputation and governance capacity according to international standards," a representative of Nam A Bank said. "It demonstrates our strong commitment to supporting Vietnamese businesses as they venture into global waters, serving as a launchpad for Vietnamese-made products to reach the most demanding markets and enhance their international competitiveness."

To kickstart this partnership, the IFC is planning to facilitate a trade finance package worth $50 million for Nam A Bank. This follows an extensive period of Know Your Customer procedures, comprehensive evaluations, and direct due diligence conducted by the IFC.

The IFC performed Enhanced Due Diligence in accordance with international standards, focusing on a holistic review of Nam A Bank’s credit governance and risk control frameworks.

The assessment covered credit portfolio quality, appraisal and approval processes, internal rating systems, post-lending controls, and compliance with advanced Basel II risk management standards.

This collaboration builds upon previous initiatives between Nam A Bank and the IFC to implement green transformation projects within framework Vietnam's International Financial Centre in Ho Chi Minh City.

Joining the GTFP network is a testament to Nam A Bank’s internal capabilities and a strategic step in connecting international green capital with the domestic economy.

A member of the World Bank Group, IFC is the largest global development institution focused on the private sector in emerging markets. Established in 1956, the IFC promotes sustainable growth and poverty reduction through investment, advisory services, and capital mobilisation.

VIR