Vietcombank, Hyundai shipyard sign $110 mln credit deal

Vietcombank's Khanh Hoa province branch and Hyundai Vietnam Shipbuilding Co. signed a short-term credit contract for $110 million on Monday, following a similar agreement for $50 million signed in 2022.

Right after Monday's signing the Vietnamese lender will disburse $57.95 million to the Korean shipbuilder.

Speaking at the signing ceremony, Dinh Van Thieu, Vice Chairman of the central province, lauded the two sides' cooperation in line with his province’s efforts to promote the development of industries of strength, including shipbuilding. He said he expected the deal to encourage Vietnamese banks to provide credit to the business community.

Hyundai Vietnam Shipbuilding aims to build 13 ships this year. Since opening in 2008, the $350-million factory has delivered over 150 ships of between 35,000 and 110,000 tons, reaping $5 billion in revenue. The shipyard accounts for 40% of Khanh Hoa province's annual export value, according to provincial data.

Vietcombank's unconsolidated pre-tax profit was estimated at VND36,774 billion ($1.56 billion) in 2022, exceeding its target by 19% and up 39% year-on-year. Its non-interest income was up 9.2% compared to 2021, exceeding its target by 8.7%, according to a report released by the bank last month.