ADB provides loans, grants of $785 mln to Vietnam in 2022

The Asian Development Bank (ADB) provided loans and grants of $785.4 million to Vietnam last year, according to the bank’s annual report 2022.

The figure accounted for 3.89% of the ADB’s total loans and grants to Asian nations of $20.22 billion in 2022.

The biggest deal for Vietnam last year was $613.7 million for the Trade and Supply Chain Finance Program (TSCFP), a program of the bank to make global trade and supply chains green, resilient, inclusive, transparent, and socially responsible.

A notable activity was a $100 million loan to VPBank to expand access to finance for women-owned small and medium-sized enterprises in Vietnam. This deal then attracted $400 million in parallel financing from three other commercial banks and the Japan International Cooperation Agency (JICA).

Two other deals were a $25-million loan to BIM Wind Power JSC for the construction and operation of an 88-MW wind farm in the central province of Binh Thuan, and a $20 million loan to automaker VinFast as part of a $135 million financing package to support Vietnam’s electric public bus fleet and national electric vehicle charging network.

Other activities included a $19.7 million loan to Hayat Kimya Vietnam Company Limited to make childcare and women’s products with the construction of a factory for hygiene pads, wet wipes, and baby diapers; and a $7 million loan for a project of waste management and energy efficiency in the southern province of Binh Duong.

The ADB recorded a revenue of $160 million from activities related to ordinary capital resources (OCR) loans, guarantees, debt securities, and equity investment in Vietnam in 2022, up from $100 million in 2021, according to its financial report.

The bank's outstanding balance reached $8.93 billion from OCR-related activities on December 31, 2022.

The ADB currently gives loans, guarantees, equity investments, grants, and technical assistance to developing nations in Asia and the Pacific, with OCR and the Asian Development Fund (ADF) as two sources. In particular, OCR loans are given to middle-income countries at a quasi-market rate.

As of December 31, 2022, the ADB’s outstanding loans in Vietnam from OCR reached $8.11 billion. The combination of ADB's undisbursed committed loans and its approved but not yet committed loans for Vietnam was $10.27 billion, or 5.24% of its total in Asia.