Japanese banks to provide 300 million USD for Vietnam's renewable energy

Illustrative photo. (Photo: baodautu.vn)

Tokyo (VNA) – Four Japanese banks - the Japan Bank for International Cooperation (JBIC), Mizuho Bank, Joyo Bank, and Shiga Bank - will co-finance a total of 300 million USD in credit lines to power producers using renewable energy in Vietnam to help the growing Southeast Asian country decarbonize, according to the Nikkei Asia.

The banks will provide funds through the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) which will in turn provide subleasing loans, mainly to local businesses.

By indirectly utilizing Vietcombank's credit information, the Japanese banks expect that high-risk loans can be provided swiftly, Nikkei Asia said.

In January, JBIC issued a joint statement related to the Vietnam Climate Finance Framework, which aims to promote Vietnam's decarbonisation in partnership with US and Australian government financial institutions and others. This co-financing by the four Japanese banks is JBIC's first project under this framework.

Vietnam has set a goal of achieving net-zero carbon emissions by 2050. Expanding the introduction of renewable energy is considered a key to reaching the target./.

VNA