State Bank of Vietnam and Asian Development Bank discuss expanding private sector financing and Basel II supervisory support

The State Bank of Vietnam met with Asian Development Bank (ADB) Vietnam Country Director Shantanu Chakraborty to review cooperation and discuss further support, with a focus on scaling ADB financing for Vietnam’s private sector and advancing technical assistance for the central bank and banking system. Discussions covered options to increase ADB private sector financing, including projects without government guarantees, and steps by the State Bank of Vietnam to work with relevant ministries to address legal constraints and simplify administrative procedures to facilitate ADB and other international organisations’ private investment activities. ADB reported cumulative private sector financing in Vietnam of around USD 1 billion as of end-June 2025, and shared progress on technical assistance projects including support for financial inclusion and climate finance and the development of a Basel II-aligned Supervisory Review and Evaluation Process (SREP) framework. Additional cooperation proposals included expanding private-sector financing products, promoting a legal framework to support trade finance and supply chain finance, and providing anti-money laundering software support for the State Bank of Vietnam. The State Bank of Vietnam noted the proposals and indicated it will continue working with ADB to study and implement relevant items, while ADB proposed joint policy dialogue and investment promotion activities in localities with private-sector development potential.