Japanese Banks Join Forces to Support Renewable Energy Projects in Vietnam

The Japan Bank for International Cooperation (JBIC) has signed a credit line agreement totaling up to US$300 million with Vietnamese state-owned commercial bank Vietcombank, to finance renewable energy projects in Vietnam.

The credit line is co-financed with Mizuho Bank, Joyo Bank, and Shiga Bank. JBIC will also provide a guarantee for the portion co-financed by the private financial institutions.

The loan is in line with the Asia Zero Emissions Community (AZEC) Concept, which is led by the Government of Japan, pursuing carbon neutrality and economic growth depending on the circumstances of each country.

It also aligns with the Just Energy Transition Partnership (JETP), which was agreed on by the Government of Vietnam and its partner countries, including Japan and the United States, in December 2022.

This is the first loan JBIC extends under the Vietnam Climate Finance Framework (VCFF), which was announced under the Australia-Japan-United States Trilateral Infrastructure Partnership (TIP) in January 2023.

In November 2021, the Vietnamese government announced its national goal to achieve net zero emissions by 2050. Also, according to the government’s eighth Power Development Plan, which is under preparation, renewable energy will reach 72,238MW of the country’s total power generation capacity of 156,385MW in 2030.

Vietcombank, which plays a role of implementing the Government’s policies as a state-owned commercial bank, is actively expanding support in such sectors as renewable energy based on the government’s decarbonisation policy.

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