- Region: Asia
- Infrastructures
- Environment
- Overseas Investment Loans
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The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed today a loan agreement, totaling up to approximately USD21 million (JBIC portion), with Thang Long Industrial Park II Corporation (TLIP2), a Vietnamese subsidiary of Sumitomo Corporation, based on the credit line set up on March 24, 2022*1. The loan is co-financed with Sumitomo Mitsui Banking Corporation, bringing the total co-financing amount to USD35 million.
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The loan is intended to provide the necessary funds for the expansion project of Thang Long Industrial Park II to be conducted by TLIP2 in the Hung Yen province in the north of Vietnam.
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Sumitomo Corporation, which is the only Japanese integrated trading and business investment company with a business division specializing in industrial park development, operation, and sales, aims to shift its management resources to the social infrastructure business, where the potential for market growth is particularly high. Since opening Thang Long Industrial Park in Vietnam in 1997, Sumitomo Corporation has been supporting Japanese manufacturers entering the Vietnamese market for 25 years. The total land area of Thang Long Industrial Park, Thang Long Industrial Park II, and Thang Long Industrial Park III (Vinh Phuc) is the largest of its kind in Vietnam for Japanese companies.
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In August 2019, the Communist Party of Vietnam issued Resolution 50 NQ/TW on orientations toward the improvement of regulations and policies to enhance the quality and efficiency of foreign investment by 2030. The resolution aims to organize systems to encourage quality foreign investment so that foreign investment registration will reach USD30 billion to USD40 billion per year by 2025. Against the backdrop of the resolution and supply chains being reorganized due to the COVID-19 pandemic, Japanese companies’ appetite for entering the Vietnamese market is growing. This expansion project will assist Japanese companies in entering this overseas market and will also facilitate the strengthening of supply chains. The loan will support Sumitomo Corporation’s overseas business expansion, thereby contributing toward maintaining and improving the international competitiveness of Japanese industry.
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As Japan’s policy-based financial institution, JBIC will continue to provide financial support to assist Japanese companies in the overseas expansion of their businesses by drawing on its various financial facilities and schemes for structuring projects.