MARKET DEVELOPMENT

• HD Bank supports the growth of Vietnamese agricultural MSMEs by alleviating financing constraints: Agricultural MSMEs make up over 97% of all MSME businesses and account for 36% of total private‑sector employment in Vietnam¹. HD Bank has a track record of supporting MSMEs in rural areas and smaller cities across key sectors of the Vietnamese economy, such as agriculture and manufacturing. HD rolled out a rural mobile application in 2024 to respond to agricultural MSMEs' needs to streamline and accelerate credit flows. This was part of the Bank’s 2021‑2025 Strategy to increase its rural area penetration in the mass‑market segment and become a leading bank in Southeast².

¹ Asian Development Bank 2023, 2023 ADB Asia SME Monitor – Viet Nam
² HD Bank, 2023, Annual report.

GENDER EQUALITY

• This transaction will promote gender equality, by supporting the Bank’s on‑lending to WMSMEs: These enterprises constitute 20%³ of all MSMEs in Vietnam and face unmet financing needs. Their total estimated financing gap represents 26% of the total MSME one⁴. From a strategic growth perspective, HD Bank is keen on increasing its WMSME segment, potentially through its strategy and products

CLIMATE AND NATURE ACTION

• Through this transaction, HD Bank will support green lending for the transition to a low‑carbon economy: Climate change‑related consequences (e.g., extreme weather events) accounted for nearly 3.2% of Vietnam’s gross domestic product (GDP) loss in 2020, and this share is projected to reach between 12% and 14.5% by 2050⁵. The Bank supports climate change mitigation projects, mainly in the renewable energy sector. HD Bank intends to assess its portfolio’s physical climate risk assessment as part of the implementation of their newly developed Environmental and Social Risk Management in Credit Extension policy.

³ Asian Development Bank, 2023. Facilitating entrepreneurship growth by lifting barriers. A white book on women‑owned 
small and medium‑sized enterprises in Vietnam
⁴ SME Finance Forum. Vietnam
⁵ Mani et Thomas, 2023. To fulfil Vietnam’s economic ambitions, climate action is essential.