46751 - GSCF VPBank

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Summary of Investment Information

Project Number

46751

Company Name

GSCF VPBank

Date SPI Disclosed

May 10, 2022

Country

Viet Nam

Region

East Asia and the Pacific

Projected Board Date

Jun 10, 2022

Environmental Category

FI-2 - Limited

Status

Pending Approval

Last Updated Date

May 10, 2022

Department

CFGPD - Global Industry, Financial Markets/Trade & Supply Chain, Products

Industry

Financial Markets

Sector

Commercial Banking - Trade and Supply Chain

Project Description

The proposed project (the “Project”) is up to US$150 million with an IFC investment of up to US$75 million in partnership with Vietnam Prosperity Joint Stock Commercial Bank (“VPBank” or, the “Bank”) to provide supply chain finance (“SCF”) on a portfolio basis for suppliers in Vietnam.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	75.0
Equity

Development Impact

1. Through the Project, IFC will provide a solution to allow Vietnamese supply chain of agriculture export, including SME suppliers and agriculture exporters to receive financing by leveraging SCF techniques and lowering the lender’s reliance on stand-alone SME creditworthiness. 2. The Project structure helps reduce the effects of capacity constraints and ensure a local key market player to stay engaged and expand their SCF presence in Vietnam.

E&S Category Rationale / Risks and Mitigation

The proposed project entails a risk sharing facility in partnership with Vietnam Prosperity Joint Stock Commercial Bank ('VPBank' or, the 'Bank') to provide supply chain finance ('SCF') on a portfolio basis for suppliers in Vietnam. The project will cover coffee and other selected agricultural commodities in Vietnam. The trade transactions supported by the project are expected to be of low to medium environmental & social (E&S) risks. The project will not support any coal-related activities or higher risk business activities that may involve (a) involuntary resettlement, (b) risk of adverse impacts on Indigenous Peoples, (c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage, or (d) significant Occupational Health and Safety risks. This project has been categorized as FI-2 in accordance with IFC's Sustainability Framework. The applicable E&S performance requirements for the project will include (i) IFC Exclusion List, (ii) relevant national E&S laws and regulations, and (iii) IFC Performance Standards 2 and 6 for supply chain requirements. The main E&S risks and impacts of the project derive from the E&S risks associated with the project-supported activities and the Bank's capacity and systems in place to manage these risks. Typical E&S risks associated with the project may be related to labor and working conditions and impacts to biodiversity related to the supply chain in Vietnam. The Bank has developed an Environmental & Social Management System (ESMS) for its corporate and commercial lending and has nominated E&S staff. The Bank have in place human resources practices and policies which are generally aligned with Performance Standard 2 on Labor and Working Conditions.

For this project, VPBank will be required to enhance its existing ESMS to support the E&S screening of eligible transactions for supply chain management and monitoring procedures following the IFC requirements. In addition, the Bank will be required to provide training on the updated ESMS for relevant staff involved in the implementation of the project. The Bank will also work with IFC to establish proper criteria for qualifying global and local buyers with regard to E&S risk screening and supply chain management and monitoring as part of its ESMS enhancement. VPBank will disclose a summary of its updated ESMS on its website. IFC will monitor the project's E&S performance through reviewing periodic E&S reports provided by the Bank and conducting site-based supervision of the project activities as needed.

Contacts

For Inquiries About the Project, Contact

Vietnam Prosperity Joint Stock Commercial Bank
Ms. Nguyen Thi Thanh Nga
Head of Financial Institutions Department
+84 24 7305 6600 ext: 100574
Ngantt71@vpbank.com.vn
89 Lang Ha, Dong Da, Ha Noi, Vietnam
Websitehttps://www.vpbank.com.vn/

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IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Task Title & Description	Anticipated Completion Date
Upgrade the ESMS	08/31/2022
Conduct ESMS training	08/31/2022

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