IFC has two active investments in Tien Phong Commercial Joint Stock Bank (“TPBank”) – consisting of a $18.35 million equity and up to $100 million debt (up to $60 million A loan; up to $22.5 million from IFC acting in its capacity as implementing entity for the Managed Co-Lending Portfolio Program; and up to $17.5 million syndicated loan). IFC has two active investments in Vietnam Prosperity Joint Stock Commercial Bank (“VP Bank”) – comprising a $57 million quasi-equity, an up to $50 A loan, and an up to $50 B loan. 

In March 2019, CAO received a complaint regarding IFC’s investment in the two IFC Financial Intermediary clients, TPBank and VPBank, related to their investments in Hoang Anh Gia Lai (HAGL), a Vietnamese company active in real estate, rubber manufacturing, energy, and mining.  At the time CAO received the complaint, both TPBank and VPBank were actively invested in HAGL.  The complaint concerns a range of social and environmental impacts related to HAGL’s rubber plantation operations in Ratanakiri, Cambodia. The environmental and social concerns raised in the complaint include loss of land, impacts on water sources, as well as on cultural and indigenous practices. The complaint was filed by NGOs Inclusive Development International, Equitable Cambodia, Highlanders Association, and Indigenous Rights Active Members, on behalf of 12 communities in Ratanakiri. 

This is the second complaint that CAO has received in relation to HAGL’s Cambodia operations. The first complaint, lodged in 2014, was found eligible based on IFC’s investment in Dragon Capital’s VEIL fund. CAO facilitated a dispute resolution process between the community representatives and HAGL. More information about the first HAGL complaint, Cambodia/VEIL II-01/Ratanakiri Province, is linked below.  

CAO found the complaint eligible for further assessment on April 2019 and began an assessment of the complaint. During the assessment, the complainants and HAGL expressed interest in pursuing resolution of their concerns using a dispute resolution process convened by CAO. Following the parties’ decision and in accordance with CAO’s Operational Guidelines, this case was referred CAO’s Dispute Resolution function. Given the overlap of parties in dialogue and issues for discussion with the previous CAO case, Cambodia/VEIL II-01/Ratanakiri Province (link below), the two cases will be merged and handled by CAO through one dispute resolution process. The assessment report is available in English and Khmer under the “Case Documents" section below.

In June 2024, the parties signed a Memorandum of Understanding, with an agreement to return over 700 hectares of land to the affected communities, and provisions for the resolution of the remaining dispute regarding 20 additional hectares of land and for the company's response to the communities' demand for financial support.