The Asian Infrastructure Investment Bank (AIIB) and Viet Nam Prosperity Joint Stock Commercial Bank (VPBank) have signed a USD100-million on-lending facility to promote sustainable infrastructure development and support climate mitigation efforts in Viet Nam.
The new facility will enable VPBank to expand lending for green and climate-resilient activities, particularly in the decarbonization of transport through electric vehicle (EV) financing. Additional investments may include renewable energy installations, logistics and warehousing, and green-building initiatives. A significant portion of the facility is earmarked for climate financing, aligning with AIIB’s strategic commitment to climate finance and supporting Viet Nam’s nationally determined contributions under the Paris Agreement.
“We are proud to expand our partnership with VPBank through this important transaction,” said Gregory Liu, Director General of AIIB’s Financial Institutions and Funds Clients Department. “By partnering with VPBank for the second time, we are supporting Viet Nam in its journey toward a low-carbon future and strengthening its infrastructure base.”
Viet Nam’s rapid urbanization and economic growth have driven demand for transport, increasing greenhouse gas emissions and air pollution. Transitioning to cleaner transport options, such as EVs and enhanced public transit, is key to reducing environmental impacts, improving public health, and meeting climate goals.
Despite strong public-sector spending, the country also faces a substantial infrastructure financing gap. Through this new facility, AIIB aims to catalyze private-sector-led investments while addressing Viet Nam’s dual climate and infrastructure financing gaps.
“This funding will help VPBank expand support for sustainable infrastructure and climate-focused investments, contributing significantly to Vietnam's development agenda,” said Nguyen Duc Vinh, CEO of VPBank. “For many years, VPBank has been one of the market leaders in environmental, social and climate contributions in Viet Nam, through the consistent development and implementation of a sustainable financial strategy and a clear understanding of responsible lending principles. This partnership with AIIB is a vivid testament to our shared vision for a greener Viet Nam.”
The facility builds on a previous USD100-million COVID-19 recovery facility from AIIB to VPBank, which supported over 100 sub-borrowers, including small businesses and women-led enterprises. It also supports one of AIIB’s corporate targets—achieving over 50% of annual financing for climate-related investments through 2030—while contributing to the Bank’s goal of increasing private sector financing.
Update: The approved amount for this project is now USD150 million. For more details, check the project page.
About AIIB
The Asian Infrastructure Investment Bank is a multilateral development bank dedicated to financing “infrastructure for tomorrow,” with sustainability at its core. AIIB began operations in 2016, now has 110 approved members worldwide, is capitalized at USD100 billion, and is AAA-rated by major international credit rating agencies. AIIB collaborates with partners to mobilize capital and invest in infrastructure and other productive sectors that foster sustainable economic development and enhance regional connectivity.
About VPBank
VPBank is one of Viet Nam’s leading commercial banks in terms of total assets, operational efficiency, and profitability, with strong performance in retail and SME segments. It is also a pioneer in digital transformation, delivering cutting-edge financial products and services. As of Dec. 31, 2024, VPBank’s consolidated total assets exceeded VND920 trillion, ranking among the largest joint-stock commercial banks. With shareholders’ equity surpassing VND147 trillion, VPBank leads private banks in capital strength, ensuring financial stability and future growth potential. For more information, please visit: https://www.vpbank.com.vn/en
