Vietnamese coffee businesses to receive $150 M funding from VPBank and IFC
Recently, the International Finance Corporation (IFC) and Vietnam Prosperity Joint-Stock Commercial Bank (VPBank) joined forces to offer $150 million in supply chain financing to Vietnamese coffee exporting businesses.
The funding, according to a statement released by VPBank on Friday, is intended to assist Vietnam’s small and medium-sized businesses (SMEs) in more effectively integrating into the world’s agricultural supply chain.
This is the first supply chain co-financing program between IFC and a local commercial bank in Vietnam, with funding provided equally by the bank and IFC.
The program is anticipated to improve private sector access to the global agricultural supply chain by first providing direct funding to coffee exporters and then expanding to other industries.
It is observed that every organization contributes special strengths to the partnership, which benefits the business community by way of their combined supply chain financing initiatives.
Coffee SMEs can take advantage of special financing packages from VPBank, which has a long history of providing SME customers with favorable interest rates and credit conditions.
Furthermore, VPBank facilitates business relationships by means of its broad clientele.
With operations in over 100 nations, the International Fund for Agriculture and Climate (IFC) will facilitate the connection between small and large buyers and suppliers, particularly major importers of coffee and agricultural products who have substantial financial resources, vast networks, and effective supply chain management systems.
In addition, IFC will offer guidance on sustainable finance frameworks, financing initiatives for sustainable supply chains, and developments in green agriculture to regional suppliers and major purchasers.
Information about green agriculture certifications that satisfy the requirements of important import markets in America and Europe is also included.
Notably, VPBank’s digital banking platform will be used for financing under this supply chain finance program, and the bank’s online supply chain finance platform will host initiatives to connect and communicate with importers and exporters both locally and globally.
This is to guarantee smooth customer experiences.
With an export revenue of over $4 billion over the previous two years, coffee continues to be Vietnam’s main agricultural export. As such, the trade finance partnership between VPBank and IFC is anticipated to support the working capital requirements of coffee businesses.
