Blended Finance for Vietnamese SMEs | IFC, World Bank, ADB Support
Can businesses access blended finance from the International Finance Corporation (IFC), the World Bank (WB), or the Asian Development Bank (ADB)?
Vietnamese businesses, especially Small and Medium-sized Enterprises (SMEs), are fully capable of accessing blended finance from development finance institutions such as the International Finance Corporation (IFC), the World Bank (WB), and the Asian Development Bank (ADB). Blended finance is a mechanism that combines concessional funding from the public sector with commercial capital from the private sector, aiming to mitigate risks and mobilize additional resources for sustainable development projects, including emission reduction and carbon credit projects.
In Vietnam, the IFC has implemented the Green Finance program in the private sector, supporting commercial banking systems such as BIDV and TPBank in developing green credit products for SMEs. Furthermore, the IFC provides financial instruments such as concessional loans, technical assistance, and guidance on implementing international environmental standards to help businesses enhance their capacity to access sustainable capital flows.69
The World Bank (WB) is also operating numerous blended finance programs, notably the Partnership for Market Implementation (PMI) program, aimed at supporting Vietnam in establishing a national carbon pricing system. Within the framework of this program, businesses can receive financial and technical support to develop carbon credit projects, aligning with mechanisms such as the Joint Crediting Mechanism (JCM), the Emissions Trading System (ETS), and the Voluntary Carbon Market (VCM).70 71
The Asian Development Bank (ADB) also plays a crucial role in promoting climate finance in Vietnam, providing blended financial support to businesses through the Asia Pacific Climate Finance Fund (ACLIFF) and the Green Recovery Platform. Financial instruments include risk guarantees, seed funding, and support for green transition costs for SMEs in sectors such as energy, manufacturing, and agriculture.72
However, to access these capital sources, businesses need to meet certain conditions such as: (i) having greenhouse gas emission projects that are measurable, reportable, and verifiable (MRV); (ii) complying with international standards such as VCS, Gold Standard, or JCM; (iii) possessing clear governance capacity and transparent financial reporting; and (iv) cooperating with domestic banks or intermediary organizations such as GIZ, UNDP, and SNV to receive appropriate technical support.
Thus, businesses in Vietnam can leverage the opportunity to access blended finance as a crucial tool for effectively implementing carbon projects, while simultaneously enhancing competitiveness in the global economy's green transition trend.73 74 75
References
- International Finance Corporation (IFC). (2024). IFC’s record climate financing in Viet Nam supports green transition, private sector resilience. IFC. https://www.ifc.org/en/pressroom/2024/ifc-s-record-climate-financing-in-viet-nam-supports-green-transition-private-sector-resilience
- World Bank. (2025). Measuring, reporting, and verifying (MRV) carbon credits. Climate Finance Knowledge Notes Series. World Bank. https://openknowledge.worldbank.org/server/api/core/bitstreams/568dccad-b261-4c71-8b04-f9f86581ff1c/content
- World Bank. (2024, March 21). Viet Nam receives $51.5M World Bank payment for reducing emissions through forest preservation. World Bank. https://www.worldbank.org/en/news/press-release/2024/03/21/viet-nam-receives-51-5m-world-bank-payment-for-reducing-emissions-through-forest-preservation
- VnEconomy. (2024). Towards a green economy. VnEconomy. https://en.vneconomy.vn/towards-a-green-economy.htm
- Cornago, E., & Berg, A. (2024). Learning from CBAM’s transitional phase: Early impacts on trade and climate efforts. Center for European Reform. https://www.cer.eu/publications/archive/policy-brief/2024/learning-cbams-transitional-impacts-trade
- Vietnam Briefing. (2025). How the EU Carbon Border Adjustment Mechanism impacts Vietnam. Vietnam Briefing. https://www.vietnam-briefing.com/news/carbon-boredr-adjustment-mechanism-vietnam.html
- Southeast Asia Energy Transition Partnership. (2024). Carbon Border Adjustment Mechanism Impact Assessment Report for Vietnam: Impact assessment of EU’s Carbon Border Adjustment Mechanism and carbon tax policies for Vietnam. Energy Transition Partnership. https://www.energytransitionpartnership.org/wp-content/uploads/2024/06/20240318_Final-CBAM-Assessment-Report-final.pdf
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