Photo credit: SwedFund

Swedfund is putting USD 15 million into the Excelsior Capital Vietnam Fund II, aiming to give Vietnam’s private sector a solid push—and create more jobs along the way.

Vietnam has made impressive strides in reducing poverty and growing its economy. Still, challenges remain: funding for infrastructure, support for small businesses, and access to financial services are all in high demand.

The country’s banking system is still developing, with limited long-term financing options, especially for small and medium-sized enterprises (SMEs). With around 70% of the population aged 15 to 64, and an expanding middle class, there’s a growing entrepreneurial spirit. SMEs already make up 98% of registered companies in Vietnam.

“With our investment in Excelsior II, we increase access to capital for mid-size and growing businesses. This strengthens the Vietnamese private sector and contributes to creation of quality jobs, improved industry standards, and to increased women participation in the workforce, and in leading positions. Moreover, it contributes to increased participation in the formal economy, in a country where 65 percent of the workforce operate in the informal economy. In this way, Swedfund’s investment supports a more sustainable and resilient economy,” says Sofia Gedeon, Investment Director Sustainable Enterprises, Swedfund.

Excelsior II will provide growth capital to mid-sized companies in sectors like retail, manufacturing, healthcare, education, and tech. As part of the 2X Challenge framework, the fund also focuses on boosting opportunities for women and increasing their participation in Vietnam’s formal economy.