Sweden’s development finance institution Swedfund has agreed to lend up to $20 million to Vietnamese non-bank lender EVF General Finance JSC (EVF) to expand credit to micro, small and medium-sized enterprises, with a sizable portion of the funding earmarked for climate-related projects and women-owned businesses.
Swedfund said the facility will be deployed through EVF’s lending book, targeting smaller companies that often struggle to access longer-term funding from commercial banks.
Vietnam’s economy has been one of Southeast Asia’s fastest-growing, but credit for MSMEs can be constrained by shorter loan tenors and tighter collateral requirements, a gap development financiers have increasingly tried to fill.
Under the agreement, 40% of the proceeds will be directed to climate projects such as renewable energy and other investments that support climate mitigation, while 30% will be allocated to women-owned enterprises, Swedfund said.
The remaining funds will support broader MSME lending, per the announcement.
“With this investment, we particularly aim to boost climate action and women’s participation in the economy,” Jane Niedra, Swedfund’s director of financial inclusion, said.
The loan forms part of a broader $40 million financing package arranged with Austria’s development bank Oesterreichische Entwicklungsbank (OeEB), Swedfund said, without disclosing the pricing or tenor of the facility.
Vietnam’s rapid industrialisation has pushed up electricity demand and greenhouse gas emissions, increasing interest in financing that supports cleaner power, energy efficiency and climate resilience.
Yet long-term finance remains limited, particularly for smaller firms and for projects that require longer payback periods.
EVF is a Hanoi-based finance company founded in 2008 and operates as a non-banking financial institution under a general financial licence. It provides a range of financial services, including credit lines for MSMEs.
Swedfund, a state-owned development finance institution, invests in private-sector projects in developing markets with the stated goal of reducing poverty through sustainable investments.
It also supports feasibility studies aimed at unlocking public infrastructure development.
The organisation says its investments seek to create jobs and expand access to essential services such as electricity and food, while aligning with global climate goals.
