Japan rolls out business aid programme

Tomoyuki Hirata, deputy division chief of JBIC's Asia and Oceania Finance Department, explained that the programme included loans for import and export, overseas investment loans and united loans.

"A united loan is a lending product that aims to create an environment conducive to Japan's global economic activities, including trade and investment in developing countries," he said.

JBIC offers loans to foreign buyers and financial institutions, as well as financing for the import of important materials to Japan.

It also offers direct and indirect financing for projects undertaken by companies incorporated in developing countries and regions in which Japanese firms have equity shares.

In addition, JBIC finances projects that conserve the global environment, including those that significantly reduce greenhouse gas emissions.

Loans are also made for private-initiative projects in the fields of infrastructure and key industries.

To be eligible for this loan, the project must receive a guarantee from the government so the risk can be shared, Hirata said.

Because of the strict requirement, private companies find it difficult to meet the eligibility criteria.

Currently, JBIC and relevant Vietnamese parties are discussing ways to help companies access bank loans. JBIC offers an alternative capital source besides official development assistance (ODA) from foreign donors, said Noriyasu Yuge, JBIC's chief representative office in Hanoi.

Some of the projects that have received loans from JBIC include Cam Pha Cement, But Son Cement, Hai Phong power plants 1 and 2, Phu My 2-2 Power Plant, Phu My 3 Power Plant, and the Vietnam National Coal Minerals Industries Group.