The US Ex-Im Bank will offer preferential credit supporttargeting Vietnamese small- and medium-sized enterprises (SMEs) this year, its chairman Fred Hochberg told a press briefing Monday.

Hochberg, who is leading a business-development mission in Vietnam to boost trade ties and business opportunities between Vietnam and the US, said US Ex-Im Bank is implementing many projects in Vietnam, especially in the southern provinces, with most of their partners being small- and medium-sized enterprises, and household businesses.

Ex-Im Bank ensured capital source, trade credit insurance, and other sponsorships to aid business between these enterprises and their US partners, he told reporters.

In 2011, Ex-Im Bank authorized only about US$1 million in financing to Vietnamese projects that used US goods and services , while the figure in India was as much as $3.2 billion.

However, nearly $1.5 billion in critical infrastructure projects is currently in discussion, including satellite, thermal power, and renewable energy projects.

This financing is the fulfillment of two existing memoranda of understanding (MOU) signed in 2010 and 2011 totaling $1.5 billion.

The MOUs called for the facilitation of US. exports to Vietnam in key sectors such as air transportation, power generation and transmission, and oil and gas development. In connection with these projects, there is also an additional $500 million in financing that the Bank hopes to close on in the near future.

“We are here to roll up our sleeves and get these transactions done,” Hochberg said.
“Vietnam’s infrastructure continues to develop at a rapid rate, and I want to make certain that high-quality American goods and services are available for these projects.”

Responding to the question why a major bank prioritizes its credit supports for the SMEs and household businesses, he said it is in accordance with the US government’s policy, which aimed at ensuring the SMEs can access the effective credit and capital sources.

“Most of the foreign partners of the US are SMEs, and we think it will be the same in the case of Vietnam.”

The chairman said if Vietnamese SMEs want to borrow loans for the purchase and use of US goods, machinery, and services, Ex-Im Bank will work with local banks to determine the amount of money they need to propose appropriate credit insurance and financial limits.

“Interest rates will be around 3 to 4 percent a year for loans in US dollars, depending on the loan terms,” said Hochberg.

Vietnam is one of nine key markets, including Brazil, Colombia, Mexico, Turkey, South Africa, Nigeria, India, and Indonesia, where Ex-Im Bank is focusing its business-development efforts because of the country’s infrastructure and development needs.

“Vietnam is a country of enormous potential, and it is vital that we work together and invest in projects that benefit both of our economies,” said Chairman Hochberg.

“Significant infrastructure developments are planned throughout Vietnam over the next several years, and I’m here to ensure that American companies invest in those projects, and that we maintain a dynamic and comprehensive partnership.”

(Source: Vietnamnet)