Supporting SME Growth and Sustainable Economic Development in Vietnam
Swedfund, the Swedish development finance institution, has announced a USD 15 million investment in Excelsior Capital Vietnam Fund II. This investment aims to support the growth of small and medium-sized enterprises (SMEs) in Vietnam, promote private sector development, and contribute to job creation across key industries.
Vietnam has made significant strides in poverty reduction and economic growth in recent decades. Despite this progress, the country continues to face structural challenges, including limited infrastructure financing, insufficient support for small businesses, and restricted access to financial services.
The Vietnamese banking system remains underdeveloped, particularly in terms of long-term financing options for SMEs. At the same time, the country’s young and dynamic population—70% of whom are between the ages of 15 and 64—and a growing middle class are driving a rise in entrepreneurship. SMEs represent 98% of all registered businesses in Vietnam, highlighting their critical role in the economy.
“With our investment in Excelsior II, we aim to increase access to capital for mid-sized and growing businesses,” said Sofia Gedeon, Investment Director, Sustainable Enterprises at Swedfund. “This not only strengthens Vietnam’s private sector but also supports the creation of quality jobs, improved industry standards, and greater participation of women in the workforce and in leadership roles. Additionally, it encourages formal employment in a country where 65% of the workforce is still part of the informal economy. Through this investment, Swedfund contributes to building a more sustainable and resilient Vietnamese economy.”
Excelsior II focuses on providing growth capital to mid-sized companies across sectors such as retail, manufacturing, healthcare, education, and technology. The fund is aligned with the 2X Challenge —a global initiative to support women’s economic empowerment—and is committed to enhancing opportunities for women and increasing their participation in Vietnam’s formal economy.
