The expansion allows the bank to help local companies increase trade, generate foreign exchange and create jobs.
Since joining the Global Trade Finance Program in May 2011, VIB has been able to expand its trade-finance products to small- and medium-sized enterprises in key export and import sectors.
A trade line expansion will help VIB considerably improve our capacity to cover the payment risk in granting trade financing to local companies, mostly SMEs, especially when trade lines are limited, said Dương Thị Mai Hoa, chief executive officer of VIB.
As part of the program's extensive network of more than 400 participating banks, VIB will be recognized globally, which will increase our access to new markets, she added.
VIB is one of the newest Vietnamese banks to join the program since its launch in Việt Nam in 2007.
IFC's continued support to VIB is an example of how we can work with local banks to promote trade flows vital to enterprise growth despite liquidity constraints, said Mr. Simon Andrews, IFC regional manager for Việt Nam, Cambodia, Lao PDR and Thailand.
Since its inception in 2005, IFC's award-winning Global Trade Finance Program has issued more than 10,000 guarantees totaling US $14.3 billion to banks on trade-related payment obligations of its financial institution clients in emerging markets.
The program extends and complements the capacity of banks to deliver trade finance for importers and exporters on a per-transaction basis in markets where trade lines may be limited.
Through the program, IFC provides coverage for more than 200 issuing banks in over 90 emerging markets and has a network of more than 400 participating banks worldwide.
In fiscal year 2011, 53% of the total volume went to support trade in the world's poorest countries and 79% went to SMEs./.