- Region: Latin America and the Caribbean
- Mid-tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
The Japan Bank for International Cooperation (JBIC; Governor, CEO: Hiroshi Watanabe) signed on February 22 a memorandum of understanding (MOU) with the Guanajuato State Government of Mexico for developing and strengthening a framework to support the business deployment of Japanese mid-tier enterprises and small and medium-sized enterprises (SMEs) to the state through Japanese regional financial institutions. Under this MOU, JBIC will build a framework for conducting continuous consultation on specific cooperative measures with the State of Guanajuato to support Japanese mid-tier enterprises and SMEs, with whom Japanese regional financial institutions have business relationships, expand their businesses in Mexico.
Since the Financial Services Agency, the Ministry of Finance, and the Ministry of Economy, Trade and Industry issued a joint press release, the "Development and Strengthening of Support System by Financial Institutions for Small and Medium Enterprises' Entry into Asia through Coordination among Japanese Regional Financial Institutions, Japan Bank for International Cooperation (JBIC) and Japan External Trade Organization (JETRO)" (the "Framework") in December 2010, JBIC has been working with the Regional Banks Association of Japan and others to strengthen partnerships with overseas local financial institutions, while identifying the needs of mid-tier enterprises and SMEs for expanding their overseas business operations through Japanese regional financial institutions. The State of Guanajuato, located in the center of the Mexican Plateau which is rapidly becoming the focal point for the automobile industry, is now regarded as one of the most important automobile production sites in Mexico, helped by its accessibility to final car assembly plants which are spread across the central Mexican Plateau states. Japanese companies are thus expected to soon expand and invest in the State of Guanajuato, and the conclusion of this MOU supports such business deployment by Japanese mid-tier enterprises and SMEs to the state, with the aim of contributing to maintaining and strengthening the international competitiveness of Japanese industries.
JBIC and the State of Guanajuato will, on the basis of this MOU, support Japanese mid-tier enterprises and SMEs expand their businesses in Mexico by providing JBIC's intermediary services between the State of Guanajuato and Japanese financial institutions and actively promoting a Japan desk (a desk providing services exclusively for Japanese companies), which is scheduled to be established by the state, as well as by providing advisory services to mid-tier enterprises and SMEs from both JBIC and the state.
To date, JBIC has, under the Framework, signed MOUs with KASIKORNBANK Public Company Limited (KASIKORNBANK) in Thailand, PT. Bank Negara Indonesia (Persero) Tbk (BNI) in Indonesia, the State Bank of India (SBI) in India, BDO Unibank, Inc. (BDO) and Metropolitan Bank and Trust Company (Metrobank) in the Philippines, Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), and Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank)*1. This is JBIC's third MOU concluded with a Mexican state government for business cooperation, following MOUs with the states of Aguascalientes and Jalisco*2. These MOUs, signed with Mexican state governments and a local bank enhance the Framework respectively, and are instrumental in implementing the Japanese government's "drastic measures to enhance the comprehensive support system for the overseas development of mid-tier enterprises and SMEs" as part of the "Comprehensive TPP-related Policy Framework" (announced by the TPP Task Force on November 25, 2015).
- As Japan's policy-based financial institution, JBIC will continue to support the maintaining and strengthening of the international competitiveness of Japanese industries by developing and enhancing the framework for supporting the overseas business deployment of Japanese mid-tier enterprises and SMEs in regions such as Latin America, in cooperation with Japanese financial institutions, as well as local governments abroad.
- *1 See Press Releases about MOUs with: KASIKORNBANK in Thailand on May 30, 2011; BNI in Indonesia on July 28, 2011; SBI in India on August 31, 2012; BDO and Metrobank in the Philippines on March 21, 2013; BIDV in Vietnam on July 25, 2013; and Vietcombank on August 30, 2013.
- *2 JBIC concluded the same type of MOU with the State of Aguascalientes in October 2015 and the State of Jalisco in November 2015. Please see Press Releases on October 26 and November 11, 2015, respectively, for further details.