The Vietnam Prosperity Joint Stock Commercial Bank (VPBank) and the Japan Bank for International Cooperation (JBIC) signed a $150 million credit agreement to finance renewable energy and power transmission projects in Vietnam. The deal supports Vietnam’s objective to obtain net-zero emissions by 2050.
The ceremony to sign the agreement was held at headquarters of VPBank in Hà Nội. Japanese Ambassador to Vietnamese, Ito Naoki, JBIC’s Senior Executive Officer Ogawa Kazunori, VPBank’s General Director Nguyễn Đức Vinh and leaders from the two sides were present at the signing ceremony.
JBIC is the government-owned financial institution focused on environmental protection and mitigation of climate change. In cooperation with global financial institutions, JBIC funds sustainable development projects. VPBank and JBIC agreed to the loan deal as part of its mission to provide support for national green initiatives in line with Vietnam’s broader national goals.
Vietnam, in the United Nations Climate Change Conference (COP26), has committed to achieving net-zero emission by 2050. To achieve this goal, the government issued the Power Development Plan, PDP 8 in 2023. The plan guides the transition of society from the usage of fossil fuels to renewable energy, incorporating smart power systems with an upgrade of power transmission networks nationwide.
JBIC will commit US$ 150 million in VPBank to finance corporate projects in the development of the power grid and renewable energy. The mentioned efforts should be a follow-up step in increasing environmental protection measures throughout the various regions of Vietnam.
Japan ranks among the top three countries with the highest registered investments in Vietnam, amassing more than $76 billion as of June 2024. Before the JBIC deal, VPBank had secured major loans, including US$300 million from the US International Development Finance Corporation (DFC) and US$1.7 billion from international financial institutions.
