ADB to Support SME Development in Viet Nam through $600,000 Grant

Strategic Insights -

The Asian Development Bank (ADB) has announced a $600,000 technical assistance grant to support small and medium enterprise (SME) development in Viet Nam. The grant will be used to design an ADB investment project to develop the leasing industry and support the implementation of an ongoing ADB program. The ADB's SME Enterprise Development Program Cluster is working with the Vietnamese Government to create an environment conducive to SME development, addressing policy framework, institutional coordination, and access to resources for SMEs.

Key Takeaways:

  • The ADB will provide a $600,000 technical assistance grant to support SME development in Viet Nam.
  • The grant will be used to design an ADB investment project to develop the leasing industry.
  • The project aims to address access to finance and land use rights certificates, which are critical issues for SMEs.
  • The ADB's SME Enterprise Development Program Cluster is working with the Vietnamese Government to create an environment conducive to SME development.
  • The program has two subprograms: the first backed by a $60 million ADB loan approved in 2004, and the second assisted by a $20 million loan for the investment project on leasing.
  • The investment project on leasing is planned for 2007, and the second subprogram will be supported through technical support, capacity building, and coordination of stakeholders.
  • The Government will finance $150,000 of the total cost of the technical assistance, which is equivalent to $750,000.

Statistics:

  • $600,000: The amount of the technical assistance grant provided by the ADB.
  • $60 million: The size of the ADB loan approved in 2004 for the first subprogram.
  • $20 million: The size of the loan for the investment project on leasing.
  • 2004: The year the ADB loan for the first subprogram was approved.
  • 2007: The planned year for the investment project on leasing.
  • $750,000: The total cost of the technical assistance grant, equivalent to the Government's counterpart services and facilities.

Sources:

  • Asia Pulse, July 6.
  • Statement from the ADB (no date mentioned).