FMO and MSB partner to support climate SMEs

Better support for climate SMEs with MSB and FMO/DFCD Partnership

On January 23, 2025, at the residence of the Ambassador of the Kingdom of the Netherlands, Vietnam Maritime Commercial Joint Stock Bank (MSB) and the Dutch Development Bank (FMO) on behalf of the Dutch Fund for Climate and Development (DFCD), signed facility agreements to support small and medium enterprises (SMEs) and climate-relevant businesses.

A Strategic Partnership for Sustainable Growth

The collaboration between MSB and FMO/DFCD is set to provide MSB with a substantial loan of up to 80 million USD, with a tenor of up to 9 years. This funding will be directed towards financing SMEs, micro SMEs, and women-led SMEs in rural, sustainable, climate-smart, and agricultural sectors. Additionally, MSB may receive support from SNV, one of the co-managers of the DFCD, through the DFCD’s Origination Facility. 

A strong partner in MSB

MSB’s operations in this sector are promising, but this partnership was a long time in the making. Mr. Nguyen Hoang Linh, CEO of MSB, emphasized the importance of this collaboration, stating:

“The collaboration between MSB and FMO/DFCD is a key element of our strategic plan, and it underscores our strong commitment to creating long-term value for all parties. We are confident that with the support of reliable partners like FMO/DFCD, MSB will be able to drive sustainable transformation, not just within our bank but across our client portfolio, our partners, and the broader Vietnamese banking sector.”

Juan Jose Dada, Director of Financial Institutions at FMO, echoed this sentiment, highlighting the alignment with FMO’s strategy and the contribution to the Sustainable Development Goals (SDGs) in Vietnam:

“We are very happy to start our partnership with MSB. By working together with a strong partner like MSB, we are able to execute FMO’s strategy and contribute to the reduced inequalities and climate action SDGs in Vietnam.”

Accelerating Sustainable Development

The loan from FMO/DFCD, along with other loans from institutions like the OPEC Fund and Proparco, will expedite MSB’s sustainable development commitments. This financial support is crucial in helping Vietnam achieve its national goal of net zero emissions by 2050. This partnership marks a significant step towards sustainable development and climate resilience, reinforcing the commitment of MSB and FMO/DFCD to creating a positive impact in Vietnam and beyond.