VIENNA, 13th March, 2023 (WAM) -- The OPEC Fund for International Development (OFID) has announced that it is providing a US$40 million loan to Vietnam Maritime Commercial Joint Stock Bank (MSB) for on-lending to small and medium-sized enterprises (SMEs).

The OPEC Fund's loan will support at least 80 local businesses, providing financing to meet critical needs to grow their businesses. Meanwhile, MSB will benefit from a growing portfolio of clients.

OPEC Fund Director-General Dr. Abdulhamid Alkhalifa said, "SMEs make up the majority of businesses and provide more than half of overall employment in Vietnam. Systemic banks such as MSB are critical to providing financing to support local businesses and increase their access to global markets, promoting sustainable economic development and job creation."

Nguyen Hoang Linh, CEO of MSB, stated, "Our strategy is to promote the development of the SME sector to become our main growth driver in the near future. The agreement affirms the partnership between MSB and the OPEC Fund and the parties' efforts to promote financial access for SME clients, who have a high demand for capital to resume dynamic growth after the COVID-19 pandemic."

According to the Ministry of Finance, Vietnam has more than 500,000 private firms of which over 95 percent are micro and small enterprises. Access to credit remains a major concern for these companies as their integration in global supply chains and finance was disrupted by the pandemic.

OFID was established in January 1976 by the then 13 member countries of OPEC, including the United Arab Emirates. It is the development finance institution established as an aid channel to developing countries.