Under the agreement, the JICA would lend the BIDV a preferential loan of 2.94 billion yen (US$24 million) within 15 years from the Private Sector Investment Finance (PSIF). The BIDV would then provide the loan for the project. — Photo VNA

HA NOI (Biz Hub) — A two-step loan agreement was signed in Ha Noi yesterday to finance a project for Japanese small-and-medium enterprises (SMEs) in southern Dong Nai Province's Nhon Trach 3 Industrial Park.

The Bank for Development and Investment of Viet Nam (BIDV), the Japan International Cooperation Agency (JICA) and Japanese SME Company (JSC) signed the agreement to finance a rental factory for the SMEs.

Under the agreement, the JICA would lend the BIDV a preferential loan of 2.94 billion yen (US$24 million) within 15 years from the Private Sector Investment Finance (PSIF). The BIDV would then provide the loan for the project.

Speaking at the signing ceremony, Quach Hung Hiep, BIDV's deputy general director, said the bank has further confirmed its prestige and ability in the international capital market as it was chosen for the two-step loan. In addition, the bank's loan for the project has also confirmed its commitment in supporting businesses which have Japanese investments in Viet Nam.

Yasushi Tanaka, director general, Private Sector Partnership and Finance Department, JICA said the co-operation would be an opportunity to expand credit relationship with one of leading banks in Viet Nam. The project in Dong Nai Province aimed to meet the business demands of the support industry in Viet Nam. It was expected that under the support of Saitama Province, there would be many SMEs with high technologies to rent a factory here.

Nguyen Thanh Binh, a member of the JSC's management board, said the loan would help the company save costs to stabilise and expand its production. It was targeting the provision of long-term factory areas for Japanese companies in the province.

The JICA had evaluated several Vietnamese banks for the loan as well as around 5,000 Japanese firms on factory demand in Viet Nam. Established in June 2015, the JSC is a joint venture between the Tin Nghia Corporation, the Forvan Japan Company and the Dong Nai Container Port Company. — VNS