IFC commits to Vietnam by buying into TPBank
World Bank Group member IFC now owns some 5% of Tien Phong Bank’s stakes, to further assist the lender in expanding its loan services to better serve growing Vietnamese businesses.
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IFC is also providing advisory services to further improve the lender’s corporate governance standards, risk management and digital services, as well as banking products tailored for Small and Medium Enterprises (SME).
“We are excited to have IFC join us as a preferred shareholder, marking a long-term strategic cooperation in the future,” said TPBank chairman Do Minh Phu.
“IFC’s abundant finances and extensive network of relations will enhance our capital resources and governance capacity, as well as uncover opportunities of cooperation with local and international financial institutions,” Phu added.
IFC’s investment supports TPBank’s long-term plan of becoming the country’s leading digital bank, expanding its retail and SME reach, which comprises about 85 % of TPBank’s portfolio.
“The investment in TPBank demonstrates IFC’s continued support to the Vietnamese banking sector and to developing diverse financial products and services to small and medium-sized enterprises, which will, in turn, increase financial inclusion and employment, as well as reduce poverty,” said Kyle Kelhofer, IFC country manager for Vietnam, Cambodia, and Lao PDR.
Established in 2008, TPBank has grown into a medium-sized bank with the total assets of US$3.7 billion as of mid-2016. TPBank joined IFC’s Global Trade Finance Program in December 2015 with an initial trade line of US$10 million. IFC has recently increased its trade exposure to US$30 million, based on the active utilisation of the lender.