State-controlled BIDV, one of the “Big 4” banks in Vietnam, and Long Son Petrochemicals (LSP), invested by Thailand's The Siam Cement Group (SCG), signed a $200 million credit agreement in July, the bank announced on Monday.
The cooperation reaffirms the determination of BIDV and LSP to realize their goal of turning LSP into a leading producer and distributor of plastic resins in Vietnam and the region, said BIDV deputy CEO Tran Long at the signing ceremony.
“BIDV will accompany LSP and the SCG Group in Vietnam in implementing current and upcoming projects, while strengthening and building effective collaborations and the partnership between BIDV and LSP,” he added.
LSP firmly believes that BIDV shares our common objectives, and the use of BIDV’s financial expertise and LSP’s industry know-how will strengthen the ecosystem of the petrochemical value chain ranging from LSP's suppliers to customers, said Kulachet Dharachandra, general director of LSP.
The short-term loan agreement marks the beginning of a strategic alliance between BIDV and LSP founded on trust, shared values, and a joint commitment to progress and create value, enabling them to explore more opportunities, overcome challenges, and nurture sustainable growth and success for both entities, the executive added.
Since 2021, BIDV and LSP have been actively engaged in effective collaboration across various domains. BIDV has not only provided short-term working capital financing, but also provided numerous modern and diverse banking products and services, and leveraged advanced technology and digitization, such as virtual account collections and ERP (enterprise resource planning) connections.
The Siam Cement Group (SCG) started construction of the $5.4 billion Long Son Petrochemicals Complex in Ba Ria-Vung Tau province in the fourth quarter of 2018.
As a key project in Vietnam’s oil and chemicals sector, the petrochemicals complex has been placed on a list of projects to be supervised by the Vietnamese government’s Council for State Inspection of Construction Works.
The project is nearly complete and is slated for a full trial run in September. At full capacity, its annual output will include 1.4 million tons of polyethylene (PE) and polypropylene (PP).