IFC Pledges Investment of Almost $1.9 Billion in Vietnam
The International Finance Corporation (IFC), a subsidiary of the World Bank, has announced its commitment to invest close to $1.9 billion in Vietnam by the end of the 2023 fiscal year. In a statement, the corporation highlighted how its investment and advisory programs have addressed various critical challenges faced by Vietnam, including climate change, food security, trade barriers, and the housing finance gap. These initiatives have played a crucial role in supporting local businesses’ recovery from the Covid-19 pandemic and navigating the complex domestic and international environments.
Among the notable investments made by IFC in Vietnam are BaF, a livestock producer, and GS25, a retail operator. Additionally, IFC has provided over $1.3 billion in short-term trade and supply chain finance to local companies, particularly those in the garment and agribusiness sectors. This financial support has enabled these businesses to continue importing and exporting goods, safeguarding approximately 100,000 jobs.
Furthermore, IFC has committed over $900 million in long-term finance to support climate-related projects in Vietnam. The corporation is actively collaborating with relevant ministries to develop policies that incentivize green initiatives and encourage private sector involvement in the voluntary carbon market.
IFC’s commitment to Vietnam is part of its broader efforts in the Asia and Pacific region. This fiscal year, the corporation has pledged a record-breaking $11 billion to 108 projects, representing a 10% year-on-year increase.