Vietnam program boosts supply chain finance for SMEs

Vietnam is set to enhance its supply chain finance market with a new program aimed at helping small and medium enterprises (SMEs). The second phase of this initiative was launched on March 17, 2025, with a grant of five million Swiss Francs from the State Secretariat for Economic Affairs (SECO). This support is expected to help over 500,000 SMEs access up to $35 billion in working capital by 2029. Vietnam has a strong export-driven economy, with many businesses facing challenges in getting paid for goods. Suppliers often wait 30 to 60 days for payment, which limits their ability to take on larger orders or grow their business. A World Bank survey found that only about 20% of local firms are connected to global supply chains. The new program aims to improve access to supply chain finance. This financial tool can help companies convert sales receivables and inventory into cash, lowering funding costs. This, in turn, allows businesses to reinvest in areas like research, technology, and employee skills. The first phase of the program, launched in 2018, reportedly unlocked over $30 billion in capital for many SMEs. Swiss Ambassador to Vietnam, H.E. Thomas Gass, noted the program's impact on economic growth and the importance of supporting SMEs for a more equitable marketplace. In this new phase, IFC and SECO plan to strengthen the legal and regulatory framework for supply chain finance in Vietnam. They will also work to improve the capacity of lenders to offer better financial solutions to SMEs. Enhancing knowledge and capacity among buyers and local suppliers is another priority to encourage the use of supply chain finance. Officials believe that boosting trade is essential for Vietnam’s economic ambitions. Thomas Jacobs, IFC Country Manager for the region, emphasized the importance of supply chain finance as a vital component of the financial ecosystem supporting SMEs.