The Export-Import Bank of Thailand has signed a $100 million credit facility agreement with BIDV for the Vietnamese major’s use as working capital and to support Thai shipments to its neighbor.
Under the deal, both sides will also share information to enhance Thai-Vietnamese trade and investment, and exchange business experiences.
"EXIM Thailand has opened four representative offices in Cambodia, Laos, Myanmar, and Vietnam. This reflects the priority we have given to neighboring and Greater Mekong Subregion countries," Rak Vorrakitpokatorn, president of the bank, said at the opening of its representative office in Ho Chi Minh City on June 10. The credit facility was signed as part of the event.
"This [the office launch] aims to pave the way for mutual sustainable development in economic dimension in linkage with social and environmental dimensions, enabling assistance to and relief for troubled businesses and creating industries of the future," he noted, adding that there are still ample business opportunities despite uncertainties and challenges post pandemic.
"The Thai bank is ready to take risks by supporting Thai businesses with both credit and insurance for international trade and investment and covering them against foreign exchange, trade and political risks."
With this stance, EXIM Thailand opened its office in HCMC to cooperate with both the public and private sectors, Vorrakitpokatorn added.
Vietnam is Thailand’s second-biggest trade partner in Southeast Asia, while Thailand is the eighth largest investor in Vietnam.
Thai exports to Vietnam mainly serve its industrial sector demand for raw materials and intermediate goods. Thai shipments to Vietnam include automobiles, parts and accessories, plastic resin, chemicals, air conditioners and components, and refined oil products.
Investments from Thailand are in energy, industrial real estate, manufacturing and processing, agriculture and fishery, banking, construction, wholesale and retail, hotels, restaurants, beauty clinics, transportation, logistics, and advertising.