The SGB Sector in 2017

Donor Funding: East & Southeast Asia

Funding for SME-related projects in Southeast Asia primarily focused on Vietnam

In the past decade, 62 percent of funding for SME-related projects in Southeast Asia was disbursed to projects in Vietnam.

In 2011, US $185 million was disbursed to SME-related projects in Vietnam; the largest disbursement was for the Vietnam Third Rural Finance Project from the World Bank’s IDA. IDA is the largest donor to SME-related projects in Vietnam and in Southeast Asia, and it disbursed US $440 million to SME-related activities globally in 2011. The IDA has not disbursed more than US $100 million toward the sector in a given year since then. In 2016, the IDA allocated US $31 million for SME-related projects globally.

While funding for SMEs increased in 2016 to US $88 million in Southeast Asia, as a percentage of total donor funding, it consisted of less than .5 percent. In the past decade, SME-related funding in Southeast Asia never surpassed 2 percent of total donor funding for the region.

  • Southeast Asia
  • Cambodia
  • Vietnam
  • Phillipines
  • Indonesia

Donor funding for SME-related projects in China marginal proportion of total disbursements

Over the past decade, SME-related disbursements made up more than .2 percent of total donor disbursements to China in only one year. This was due to one US $90 million disbursement by the International Bank for Reconstruction and Development (IBRD) for a Micro and Small Enterprise Finance Project in 2009. Over the past five years, the relatively small amount disbursed for SME-related projects in China has steadily declined. Only US $5 million was disbursed for SME projects in 2016. This amount included four disbursements made by the U.S. Agency for International Development (USAID), which accounted for nearly a third of total SME-related funding for the year.

While donor funding for SMEs in China may be lagging, the Chinese government is making efforts to create a friendlier business environment for SMEs. SMEs generate 60 percent of China's GDP and 80 percent of jobs, but they have long been confronted with difficulties with employee retention and securing bank loans. To address this, in 2017 the National People's Congress Standing Committee revised legislation to strengthen protection on the property rights and other rights of SMEs, and increased support in areas such as financing, taxation and employment.

  • SME
  • Total
  • %