Sweden’s development finance institution, Swedfund, has announced a significant investment of up to $20 million in Vietnam’s EVF General Finance JSC (EVF), aimed at driving climate action and supporting micro, small, and medium enterprises (MSMEs).
This loan, revealed on December 18, 2025, marks a pivotal step in expanding access to capital for underserved businesses in Vietnam while aligning with global sustainability goals.
Supporting Vietnam’s Green Transition
EVF, a key financial services provider in Vietnam, will utilize the funds to offer tailored financial solutions to MSMEs, a sector critical to the country’s economic fabric.
With this investment, Swedfund aims to address the dual challenge of climate change and economic inequality by empowering businesses to adopt greener practices.
A History of Sustainable Investments
Swedfund has a long-standing commitment to fostering sustainable development, with prior investments in Vietnam including a $15 million contribution to Excelsior Capital Vietnam Fund II earlier in 2025.
This latest move builds on Swedfund’s track record of supporting climate-resilient initiatives across emerging markets, including a parallel $20 million investment in the Helios Climate Fund for African startups.
Impact on Vietnam’s Economy and Environment
The investment is expected to create a ripple effect, enabling MSMEs to access much-needed capital for growth while integrating eco-friendly technologies and practices.
Vietnam, a nation vulnerable to climate impacts like rising sea levels, stands to benefit significantly from such initiatives that prioritize sustainability alongside economic progress.
Looking Ahead: A Model for Future Investments
Analysts see this partnership as a potential blueprint for how development finance can bridge gaps in funding for green businesses in developing economies.
As Swedfund continues to expand its portfolio in Asia and Africa, the focus remains on creating long-term impact through strategic investments like this one with EVF.
For Vietnam, this could herald a new era of climate-conscious financing, encouraging other international investors to follow suit.
Andrew Lee
