ACB bank launches foreign trade financing program

February 15, 2012 | 16:10

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Ho Chi Minh City-based Asia Commercial Bank (ACB) has kicked off a five-month credit program to support exports and imports, focusing on rice, fisheries, cashew nuts, petrol, plastics, steel and some other products.

Asia Commercial Bank launches a new transaction office on Pham Ngoc Thach Street in Ho Chi Minh City’s District 3 on Feb. 15, 2012

The non-State bank says it sets aside up to $100 million for the program, designed to provide soft loans to exporters and importers in Vietnam between this month and the end of June.

ACB adds that in addition to interest rates that are lower than its normal rates, the program includes other benefits such as financing for exports before delivery can be up to 98 per cent of the letter of credit value; and financing for imports after delivery up to 100 per cent of the value of the set of documents.

Meanwhile, financing for import payments can be up to 100 per cent of the value of the shipment.

The financing program accepts various methods of payment such as Letter of Credit, Document against Payment, Document against Acceptance, Telegraphic Transfer, and Cash against Document.

In related news, ACB on Feb. 15 launched a transaction office on Pham Ngoc Thach Street in Ho Chi Minh City’s District 5 as the bank’s 327th unit nationwide.

Under a national export import strategy for the period 2011-20 signed by Prime Minister Nguyen Tan Dung, Vietnam’s total exports by 2020 are expected to increase by three times against an export value of $71 billion in 2010, ensuring balanced trade.

The strategy focuses on four commodity groups: fuel and minerals, agro-forestry and seafood products, processing and manufacturing items; and new and high value-added products.

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