Local lender the F88 Business Joint Stock Company (F88) has been selected as one of the investee companies of Lendable to receive Technical Assistance (TA) from Australian Development Investments (ADI), formerly EMIIF.

The TA aims to facilitate various initiatives of F88 to enhance gender equality and inclusion within the company, resulting in improved women’s representation in leadership roles, gender responsive products and services, and strong business performance.

This marks the inaugural cooperation between F88 and international partners to implement initiatives aimed at benefiting both employees and customers, including entrepreneurs.

In order to bolster these endeavors, ADI has approved A$43,000 (VND693 million, or $28,800) for the Vietnam-based lender to design and test loan products that are suitable for female customers, and to undergo company-wide gender equality in business training and update policies to enable women employees to rise into middle and senior management.

Through the Mennonite Economic Development Associates (MEDA)’s application of the Gender Equality Mainstreaming Framework, F88 was able to identify areas for improvement and propose a TA plan to ADI.

The financing gap for women-led micro, small and medium enterprises (MSMEs) in Vietnam is around $6.2 billion, according to the International Finance Corporation (IFC). Despite women owning 21 per cent of formal enterprises in the country, with earnings similar to those led by men, they face unequal access to capital, attributed to barriers such as insufficient financial records, limited collateral, and the absence of tailored financial products.

F88 will pilot a new loan product for female entrepreneurs in early 2024. These loans are designed for women in Vietnam aged 20 to 55 who own small businesses like shops, cafés, and retail stores. Eligible borrowers must have a stable business location and aspirations to expand. Loans have a repayment period of up to 18 months and attractive low-interest rates. For F88, the objective of this new loan product goes beyond profit; it aims to offer a financial solution that enables women to make financial decisions for their small enterprises and improve their management and leadership skills. Women borrowers can also build their self-confidence and esteem and assets towards financial independence.

“The Australian Government is proud to deploy technical assistance through Australian Development Investments to support a Lendable portfolio company to create pathways for women entrepreneurs to access finance,” said Ms. Majdie Hordern, First Secretary, Development Cooperation, at the Australian Embassy in Vietnam. “Developing products that suit women business owners is not just the right thing to do, but the smart thing. I look forward to seeing how F88 and other lenders expand their client base by tailoring products for the thousands of women-owned businesses in Vietnam.”

In the coming months, F88 is set to roll out a series of training programs for all employees aimed at raising gender sensitivity and preventing gender-based discrimination and harassment. There will be initiatives that go beyond job-specific skills, focusing on developing management skills and various soft skills. F88 will further enhance the potential of its female managers and executives.

In 2024, F88 will take proactive steps to amend specific policies, providing needed interventions such as mentoring, coaching, and training for female employees to advance in their careers.

According to Mr. Phung Anh Tuan, CEO of F88, in the last five years, since it attracted investment from international funds, F88 has prioritized promoting gender equality. At present, 53 per cent of its employees are women, and almost 70 per cent are within the 20 to 30 age bracket. Women occupy 45 per cent of managerial positions and around 20 per cent of executive roles. F88’s female customer base is now at 30 per cent, after posting notable 234 per cent growth in 2022.

“Being a partner of Lendable and ADI for gender equality initiatives is a major achievement for F88,” said Mr. Tuan. “This recognition indicates that F88’s past efforts have been acknowledged and valued by the community for its commitment to social responsibility.”

“Recognizing the importance of empowering low-income women entrepreneurs, F88’s initiatives align with our shared vision for inclusive economic growth,” said Ms. Lienda Kavindele, Head of Impact and ESG at Lendable. “F88 not only addresses external needs but also implements internal gender equality programs, demonstrating a commitment to positive change in both business and the workplace.”

“MEDA is proud to deploy its proprietary Gender Equality Mainstreaming Framework in this assignment to help advance gender equality at F88,” said Ms. Jessica Villanueva, Sr., Director of MEDA’s Technical Areas of Practice. By helping F88 implement inclusive growth strategies through gender mainstreaming, the company will increase its potential to unlock the business and financial benefits resulting from the empowerment of women and gender equality.