Japanese banks to co-finance 300 million to promote renewable energy in Vietnam

The Japanese banks have announced to co-finance a total of 300 million USD to promote renewable energy in Vietnam.

The Japan Bank for International Cooperation (JBIC), Mizuho Bank, Joyo Bank, and Shiga Bank have provided loans to finance the power producers in credit lines.

This is expected to support the growing Southeast Asian country achieve transition goals.

According to the banks, they will “provide funds through the Joint Stock Commercial

Bank for Foreign Trade of Vietnam” and will turn provide subleasing loans, mainly to local businesses.

A local report mentioned that these banks expect that high-risk loans can be provided swiftly.

The latest project of these four Japanese banks is JBIC's first project under the framework.

Earlier, Japan Bank for International Cooperation had issued a joint statement related to the Vietnam Climate Finance Framework. This aims to “promote Vietnam's decarbonisation in partnership with US and Australian government financial institutions and others,” a report mentioned.

To be noted, Vietnam has targeted achieving net-zero carbon emissions by 2050.