Vietcombank signed a VND750 billion (US$35.71 million) credit contract with MDF VRG Quang Tri, a member company of the Vietnam Rubber Group. -- Photo dddn.com.vn

HA NOI (Biz Hub)— Vietcombank and Viet Nam Rubber Group (VRG) signed an agreement on Thursday to cooperate in their services, investments and human resource development.

The bank undertook to provide the company with financial assistance for its production and business activities, and with services such as deposits, payments, guarantees, foreign current management and risk prevention.

To seal the commitment, the bank signed a VND750 billion (US$35.71 million) credit contract on the same day with MDF VRG Quang Tri, a member company of the group.

The contract will be used to finance the construction of a medium density fibreboard (MDF) factory, costing nearly VND1.23 trillion ($58.57 million).

The factory will manufacture 120,000 cubic metres of fibreboard per year in central Quang Tri Province.

"This agreement proves that the relation between Vietcombank and VRG has achieved a new level, opening up new co-operation opportunities for both sides to promote advantages, exploit potential and enhance competitiveness," the bank said in a press release.

Vietcombank said it had supported VRG investments in such areas as rubber growing, wood processing, and infrastructure, traffic and industrial zone development, with a total fund of over $145 million.

VRG, one of the nation's major economic groups, is expected to manage 500,000ha of rubber plantations by 2015. It is expected to reach an annual output of 1.5 million tonnes and export revenues of $3 billion by 2020. — VNS