JICA, BIDV complete US$50 million loan programme for rural businesses

JICA, BIDV complete US$50 million loan programme for rural businesses

JICA and BIDV have completed a US$50 million loan programme to expand long-term financing for MSMEs, with a focus on boosting access to credit in rural areas and supporting agricultural growth.

Participants at the event. — Photo courtesy of JICA

The Japan International Cooperation Agency (JICA) and the Joint Stock Commercial Bank for Investment and Development of Việt Nam (BIDV) have marked the completion of a US$50 million loan programme supporting rural micro-, small- and medium-sized enterprises (MSMEs).

The closing ceremony on Monday followed the December 19, 2025, loan signing, marking a programme under JICA’s Private Sector Investment Finance scheme to expand long-term funding for MSMEs, particularly in rural areas.

The JICA loan is co-financed with the Asian Development Bank (ADB), which has committed up to $120 million, alongside other commercial lenders. Part of ADB’s financing is sourced from the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA), established by the Government of Canada.

Under the programme, the $50 million loan is channelled through BIDV, with $30 million earmarked for rural MSMEs and $20 million for MSMEs more broadly.

The initiative supports several United Nations Sustainable Development Goals, including No Poverty, Zero Hunger and Partnerships for the Goals, by promoting rural livelihoods, financial inclusion and international cooperation.

Stakeholders said the financing is expected to improve access to credit for MSMEs, particularly in agriculture – a key sector of Việt Nam’s economy – helping boost production and raise incomes.

The programme highlights continued cooperation between international partners and Vietnamese financial institutions in supporting private sector growth and strengthening economic resilience in rural areas. 

Bizhub