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 millionUSD 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 providefunds through the Joint Stock Commercial Bank for Foreign Trade of Vietnam(Vietcombank) which will in turn provide subleasing loans, mainly to localbusinesses.

By indirectly utilizingVietcombank's credit information, the Japanese banks expect that high-riskloans can be provided swiftly, Nikkei Asia said.

In January, JBIC issueda joint statement related to the Vietnam Climate Finance Framework, which aimsto promote Vietnam's decarbonisation in partnership with US and Australiangovernment financial institutions and others. This co-financing by the fourJapanese banks is JBIC's first project under this framework.

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

VNA