Japanese bank to offer more loans to Vietnamese firms
Japanese bank to offer more loans to Vietnamese firms
The Japan Bank for International Cooperation (JBIC) plans to offer bigger loans to Vietnamese firms involved in infrastructure and energy development projects, said Masaaki Yamada, managing executive officer and global head of the Energy and Natural Resources Finance Group at JBIC, at a meeting with Deputy Prime Minister Trinh Dinh Dung in Hanoi on March 7.
The Deputy PM said that relations between Vietnam and Japan are experiencing a period of strong and comprehensive development across all fields, especially in economics, trade and investment, according to the Government news website.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership and other bilateral agreements will open up many opportunities for enterprises on both sides, he said.
He confirmed the Vietnamese Government’s readiness to create a conducive business environment for foreign investors, including those from Japan, to conduct long-term business in Vietnam.
Vietnam is calling for investment in the prioritized fields of infrastructure and energy development, he said, adding that he highly appreciated the role played by JBIC in these fields.
In recent years, the bank has provided many loans to promote Japan’s foreign direct investment inflows into Vietnam, especially for developing key infrastructure and large-scale energy projects such as the Nghi Son Oil Refinery and Petrochemicals Complex, and Nghi Son 2, Vinh Tan 4 and Duyen Hai 3 thermal power plants.
As a financial policy institution under the Japanese Government, JBIC has also engaged in policy dialogues with Vietnam’s ministries and agencies.
While hailing the new cooperation suggestions from the bank, the senior Government leader suggested that the Japanese bank pursue negotiations to apply those plans as soon as possible.
He also asked the bank to consider expanding loans for Vietnamese businesses or joint ventures between Vietnamese and Japanese firms to stimulate their investments in Vietnam.
Meanwhile, Yamada hailed the effective execution of projects financed by JBIC loans.
The bank is focusing on technology transfer projects and encouraging Japanese small- and medium-d enterprises to establish footholds and expand their operations in Vietnam, he said.
He noted that the bank is likely to arrange larger loans for Vietnamese firms, especially those developing major infrastructure and energy projects.
Japan continues to be one of Vietnam’s leading economic partners and its largest provider of official development assistance loans, worth a combined US$30 billion, as well as its second largest foreign investor, with some 4,200 projects valued at US$57 billion.
The Northeast Asian country has always been one of the top four among more than 200 trading partners of Vietnam. The two sides hope to advance bilateral trade to US$60 billion by 2020.
A survey by the Japan External Trade Organization showed that up to 70% of Japanese enterprises polled were keen on investments in Vietnam, while 66.6% of Japanese businesses operating in the country intended to expand their production and business activities.
