ADI and Investing in Women Support Women’s Economic Empowerment in Vietnam Through ABB Fund II

January 14, 2025

Australian Development Investments (ADI) is proud to announce a strategic investment of US$5 million in the Asia Business Builders Fund II (ABB Fund II), via its Investing in Women (IW) window. The IW window seeks to increase investment in businesses focused on benefitting women, thus contributing to greater gender equality.

This investment represents a pivotal step toward addressing systemic gender inequalities by empowering women entrepreneurs and supporting small- and medium-sized enterprises (SMEs) in Vietnam to embed a gender lens in their operations, products and services.

The IW window, with a dedicated allocation of A$21 million to ADI, is a cornerstone of ADI’s strategy to promote gender-lens investing (GLI). ADI’s investment in ABB Fund II, a fund led by a gender balanced team, will specifically target high-growth SMEs that align with ESG principles and the 2X Criteria. These include companies that prioritize women’s leadership, ownership, and workforce participation, setting new standards for gender equity in Vietnam’s private sector.

Through this partnership, ADI will provide technical assistance to ABB Fund II and its portfolio companies to enhance their impact management systems, implement institutional-grade governance practices, and strengthen gender-focused policies. Key areas of support will include:

  • Gender-Smart Investing: Develop tools for screening, due diligence, and portfolio management to integrate gender considerations.
  • ESG and Safeguards: Revise ESG policies to align with DFAT Safeguards.
  • Inclusive HR Policies: Enhance recruitment, retention, and workplace equity strategies to meet gender diversity targets.
  • Impact Measurement: Strengthen impact frameworks with clear objectives, sector-specific indicators, and OPIM alignment.
  • Value Creation Support: Equip portfolio companies with tools to adopt gender-inclusive practices.

The Australian government welcomes the ADI investment in ABB Fund II as part of Australia’s Investing in Women initiative. “This collaboration exemplifies our commitment to creating a more inclusive economy by empowering women and unlocking their potential as leaders, entrepreneurs, and contributors to sustainable development” said Stephanie Copus Campbell, Australia’s Ambassador for Gender Equality.

“We are excited to welcome ADI as a strategic investor in ABB Fund II. The partnership with ADI is testimony to the strong returns and positive impact that the ABB team generates from investing in SMEs in Vietnam. Our gender-lens investing strategy will be further strengthened by ADI and Investing in Women, and we look forward to their support” said Peter Sørensen, Co-founder and Managing Partner of Asia Business Builders.

ABB Fund II targets high-growth sectors such as education, health, urbanization, food and nutrition, aligning with Vietnam’s domestic consumption-driven growth trajectory. With a fund size of US$70 million, ABB Fund II is poised to deliver strong performance while catalysing systemic change in the private equity landscape.

ADI’s investment helped ABB Fund II achieve its final close in December 2024, ensuring the fund’s long-term sustainability and amplifying its capacity to address financing gaps for women-led SMEs. By leveraging ABB’s expertise in value creation and combining it with ADI’s technical assistance, the partnership is set to create a transformative impact for women and communities across Vietnam.

For more information about ADI and its investment initiatives, please visit ADI’s website.