IFC’s active investments in Tien Phong Commercial Joint Stock Bank (“TPBank”) consist of an equity investment and a debt facility, including an A Loan, a portion provided by IFC in its capacity as implementing entity for the Managed Co-Lending Portfolio Program, and a syndicated loan. IFC’s active investments in Vietnam Prosperity Joint Stock Commercial Bank (“VPBank”) comprise a quasi-equity investment, an A Loan, and a 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 concerned 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 the Civil Society Organizations Inclusive Development International (IDI), Equitable Cambodia, Highlanders Association, and Indigenous Rights Active Members, on behalf of 12 communities in Ratanakiri. 

In April 2019, CAO found the complaint eligible for further assessment. During the assessment, the complainants and HAGL expressed interest in participating in a voluntary, CAO-led dispute resolution process. Following the parties’ decision, and in accordance with CAO’s Operational Guidelines, the case was transferred to CAO’s Dispute Resolution function. The Assessment Report is available in English and Khmer.

Since February 2020, given the overlap in the parties involved in the mediation and the issues alleged, the mediation process under this case has been jointly conducted with the process for Cambodia: VEIL II-01/Ratanakiri Province.

In June 2024, the parties signed a Memorandum of Understanding that includes an agreement to return over 700 hectares of land to the affected communities, as well as provisions to resolve the remaining dispute regarding an additional 20 hectares of land and to address the communities’ demand for financial support.

CAO continues to facilitate bilateral and joint meetings between the parties, as well as with the Government of Cambodia, as part of the dispute resolution process.