JBIC Signs MOU with Vietnam Joint Stock Commercial Bank for Industry and Trade

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Promoting Collaboration that Supports Decarbonization in Vietnam and Japanese Mid-Tier Enterprises and SMEs Entering Its Market. Region: Asia Environment Mid-tier Enterprises and Small and Medium-Sized Enterprises(SMEs) The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on December 16 a Memorandum of Understanding (MOU) with Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank), a major state-owned bank in Vietnam. The objective of the MOU is to support decarbonization and energy transition in the country as well as to support Japanese mid-tier enterprises and small- and medium-sized enterprises (SMEs) entering its market. The Government of Vietnam announced its goal to achieve carbon neutrality and become a high-income country by 2050. By formulating the Power Development Plan 8 in May 2023 to achieve both economic growth and decarbonization, the government expressed its intention to utilize gas-fired power generation as a power source in the transition period and to significantly increase the rate of renewable energy in its power generation sources. In accordance with the government's policy, the State Bank of Vietnam indicated that its policy is to accelerate providing funds for green finance in the banking sector. VietinBank is also focused on similar initiatives. The signing of the MOU is therefore in line with the policies of the Government of Vietnam and VietinBank. In the Fourth Medium-term Business Plan, released in June 2021, JBIC aims to respond to energy transformation toward the realization of a decarbonized society and to promote multilateral cooperation and cooperation with multilateral financial institutions, etc. In 2013, JBIC signed MOUs with Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) and Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) to support the overseas business expansion of Japanese mid-tier enterprises and SMEs, and JBIC will continue to support them in their efforts to enter foreign markets, including Vietnam. The signing of the MOU this time aligns not only with the policy of JBIC but also with the concept of the Asia Zero Emission Community (AZEC), which was released by the Government of Japan as a framework for energy transition in Asia, and the Just Energy Transition Partnership (JETP), which was agreed on by the G...

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