Unlocking financial opportunities for farmers and SMEs via Agriculture Value Chain Finance Initiative

December 2025 marked a significant milestone for the Finance for resilience project in Vietnam, as Agribank successfully disbursed its first agriculture value chain loan to a banana production cooperative in Hue City, part of the value chains established with the project’s support.

This achievement represents the initial outcome of the project’s collaboration with Agribank in implementing the Agricultural Value Chain Finance (AVCF) approach. This innovative model goes beyond traditional collateral-based lending by employing a holistic evaluation of creditworthiness, aiming to enhance access to tailored and affordable financial products for smallholder farmers and SMEs, particularly women.

Agribank, a 100% state-owned bank in Vietnam, is the country's largest provider of agricultural credit, serving approximately 3 million smallholder farmers through a network of over 2,300 branches nationwide. Within the context of the Finance for resilience project, Agribank acts as both a beneficiary and a service provider. The bank will receive technical support to design and pilot AVCF products while also potentially providing financing for project beneficiaries in Hue and expanding its lending to other provinces in Vietnam.

The Finance for resilience project is advancing inclusive finance initiatives and promoting sustainable agriculture transformation, thereby strengthening climate and economic resilience through the AVCF journey. It is funded by the Grand Duchy of Luxembourg and implemented by LuxDev, the Luxembourg Development Cooperation Agency.