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IFC and SECO expand supply chain finance support with $5.5 million boost for Vietnam
Vietnamese supply chain businesses are set to benefit as IFC and SECO expand financial support, improving access to capital for growth and stability.
The Hanoi Times — More than 500,000 Vietnamese businesses will soon have access to $35 billion in supply chain finance loans as the International Finance Corporation (IFC) and the Swiss State Secretariat for Economic Affairs (SECO) expand their support for Vietnam's small and medium-sized enterprises (SMEs).
Supported by $5.5 million in funding from SECO, Phase 2 of the Supply Chain Finance (SCF) Program aims to address a key challenge: working capital constraints that limit business expansion.
Many Vietnamese exporters have to wait 30 to 60 days for payment, limiting their ability to fulfill larger orders and establish new partnerships. With exports accounting for nearly half of Vietnam's GDP, cash flow bottlenecks are a significant barrier to growth.
Representatives from IFC and SECO at the signing ceremony for Phase 2 of the Supply Chain Finance (SCF) Program. Photo: Hoang Nam/The Hanoi Times
Nguyen Ngoc Canh, Deputy Governor of the State Bank of Vietnam, said that supply chain finance is a critical tool for improving businesses' cash flow and growth opportunities. "It is one of the most effective and low-risk solutions to secure working capital and enable sustainable business expansion."
