Double-deal to draw in Japanese SMEs

Last week saw the Bank for Investment and Development of Vietnam (BIDV), the Japan International Co-operation Agency (JICA) and the $36.2 million joint-venture company ink two deals on providing a loan to implement an infrastructure and workshop construction project at the Nhon Trach 3 Industrial Park.

Under the first deal between BIDV and JICA, the latter would provide a concessional loan worth $24 million for the former within 15 years. Under the second deal conducted between BIDV and the company, this loan will be lent to the latter to develop this project.

Under JICA regulations, in case the agency wants to provide a loan for a company, it must provide it indirectly via a bank.

The 183,000-sqm project is aimed to build workshops on 101,500sqm, which are to be leased to Japanese small- and medium-sized enterprises operating in a variety of sectors, such as the supporting industry, mechanics and electronics.

The area can house about 100 projects and meet all their strict requirements regarding electricity and wastewater treatment. Some 15 projects have already been cultivated at the area.

“This project will help Dong Nai attract more Japanese investors and develop its electronics and supporting industries,” said Nguyen Thanh Binh, member of the joint venture’s board of directors.

It is expected that following the construction of the facilities, many Japanese enterprises from Japan will come to lease workshops at the industrial park. This is also due to the project’s proximity to big infrastructural works such as the Ho Chi Minh City-Long Thanh-Dau Giay expressway, the Ben Luc-Long Thanh expressway and the Cai Mep-Thi Vai sea port, said Yasushi Tanaka, director general of JICA’s Private Sector Partnership and Finance Department.

Japanese SMEs Development Joint Stock Company was established in late June 2015 by locally-owned Tin Nghia Corporation (55 per cent), Dong Nai Container Port Joint Stock Company (10 per cent) and Japan’s Forval JSC (35 per cent).