Backed by CHF5 million (US$5.6 million) grant from the State Secretariat for Economic Affairs (SECO), the initiative will run until 2029, helping over 500,000 SMEs access up to US$35 billion in financing.

With nearly half of Vietnam’s economy and jobs linked to exports, local businesses often struggle with cash flow due to long payment cycles. According to a recent World Bank survey, fewer than 20% of local firms were connected to global value chains in 2023.

SCF solutions can ease these constraints by converting sales receivables into cash, enabling SMEs to take on larger orders and expand their operations.

“We estimate that the first phase of the program has unlocked over US$30 billion in capital for around half a Vietnamese SMEs,” said Thomas Gass, Swiss Ambassador to Vietnam.

“By providing financial support to these businesses, the program not only helped SMEs to thrive but also contributed to the growth of the broader economy, fostering a more inclusive and sustainable marketplace.”

Since its launch in 2018, the IFC-SECO SCF programme has helped improve regulations, enhance institutional readiness and stimulate market demand and awareness. Over the past five years, it facilitated US$33 billion in financing for 500,000 SMEs. In this next phase, the focus will be on strengthening regulations, improving lender capacity and increasing awareness of SCF solutions among businesses.

Deputy Governor Nguyen Ngoc Canh said that the State Bank of Vietnam, in collaboration with IFC and SECO, will continue reviewing and adjusting regulations to foster a more favourable environment for SCF, including refining rules for e-financing platform lending and encouraging financial institutions to diversify their offerings to improve credit access for SMEs.

"IFC is very happy and proud to be working with SECO and our bank partners to really help stimulate the market for supply chain finance, which is going to be a critical part of the financial ecosystem for SMEs. We really want to be a positive force for supply chain finance and better trade finance for Vietnam as a whole," said Thomas Jacobs, IFC Country Manager for Vietnam, Cambodia and Lao PDR.

IFC, Welcome Financial Group to tackle non-performing loans in Vietnam

IFC and Welcome Financial Group (WFG) on June 27 launched a US$60 million platform to address non-performing loans (NPLs) and enhance access to finance in Vietnam.