Loan to Vietnam Prosperity Joint-Stock Commercial Bank Based on Credit Line
Supporting Development of Electricity Grids Necessary to Expand Renewable Energy Business in Vietnam under “Global Action for Reconciling Economic Growth and ENvironmental Preservation (GREEN)” Operations

• Region: Asia
• Infrastructures
• Untied Loans

1. The Japan Bank for International Cooperation (JBIC; Governor: AMAKAWA Kazuhiko) signed today a loan agreement with Vietnam Prosperity Joint-Stock Commercial Bank (VPBank), a private commercial bank in Vietnam, amounting to up to USD27 million, of which JBIC's portion is approximately USD14 million. This loan is based on a credit line^*1 established in October 2024 and co-financed with Sumitomo Mitsui Banking Corporation and The Joyo Bank, Ltd. JBIC will provide a partial guarantee for the co-financed portion extended by these private financial institutions.
     
2. The loan is to provide VPBank with funds for a power grid development project undertaken by Vietnam’s National Power Transmission Corporation in Ho Chi Minh City, as part of GREEN operations^*2.
     
3. The Government of Vietnam revised its Power Development Plan 8 in April 2025 toward the achievement of carbon neutrality by 2050. The plan sets out objectives of expanding and upgrading power grids essential for accelerating the shift to renewable power generation. Vietnam is a key partner in the Asia Zero Emission Community (AZEC), a Japan-led collaborative initiative. Following AZEC principles, the Japanese and Vietnamese governments agreed in April 2025 to promote bilateral cooperation projects for energy transitions. The loan is part of the first batch of 15 such projects identified by the Embassy of Japan, Japanese companies, JBIC, and the Vietnamese Ministry of Industry and Trade. Taking the current situation in the Middle East into account, the Government of Japan launched the Partnership On Wide Energy and Resources Resilience Asia (POWERR Asia) in April 2026 to strengthen resilience in supply chains for energy and other crucial areas and enhance collaboration with countries in Asia.
     
4. This loan will facilitate initiatives implemented by the Government of Vietnam and VPBank that contribute to global environmental preservation. In addition, it will support the development of core infrastructure in Vietnam, thereby helping strengthen and diversify energy supply systems across Asia.
     
5. As Japan’s policy-based financial institution, JBIC will continue to support global environmental preservation efforts in cooperation with local financial institutions by drawing on its various financial facilities and schemes for structuring projects and by performing its risk-assuming function.
     

Note

1. *1 
   See Press Release on October 10, 2024. 
2. *2 
   See Announcement on July 2, 2018.