Foreign investors are heading to Vietnam to take advantage of both domestic and export markets thanks to the country’s signed free trade agreements.
A recent survey of the Japan Bank for International Cooperation (JBIC) has found that 36.4 percent of Japanese businesses operating overseas viewed Vietnam as a promising investment destination, up 2.5 percent from 2018.
The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) and the Japan Bank for International Cooperation (JBIC) have signed a 200 million USD credit contract to finance renewable energy projects in Vietnam.
The lack of a public-private partnership project list from the Vietnamese government is among many obstacles discouraging private foreign investors from investing in these projects in Vietnam.
Eleven Japanese banks, including Mitsui Sumitomo Banking Corp and Japan Bank for International Cooperation (JBIC), will provide a JPY81 billion (US$680 million) loan for the Electricity of Vietnam (EVN) to build a thermal power plant.
The Japanese Government will help private companies bid for contracts, worth roughly 50 billion JPY in total, to build an expressway and sewage treatment plant in Vietnam, a local report said.