The Export-Import Bank of the US (EXIM) and Vietnam Development Bank (VDB) have signed a USD500m memorandum of understanding (MoU) to promote the financing for US green exports to Vietnam, as reported by Nikkei Asia on March 19. The MoU will encourage collaboration between EXIM and VDB, focusing on projects that will help promote the green transition in Vietnam. Specifically, the EXIM will provide loans to companies exporting products related to renewable energy, climate, and infrastructure development to Vietnam. Following this announcement, a high-level business delegation comprising 50 top US businesses will visit Vietnam from March 18 to 20 to explore investment opportunities. Notably, the two countries just elevated their relationship to the top level of a comprehensive strategic partnership in 2023.

The MoU intends to strengthen the commercial tiesbetween the US and Vietnam, especially in the infrastructure and renewable energy sectors. As an emerging manufacturing powerhouse, Vietnam saw its exports to the US decline 11.4% year-on-year to USD97bn in 2023. Meanwhile, its trade surplus with the US totaled at around USD83bn, ranking third among countries with surplus trade with the US, only behind China and Mexico. In January 2024, Jose Fernandez, US under secretary of state for economic growth, energy, and the environment, revealed that 15 US companies including semiconductors firms, have expressed interest in investing USD8bn in Vietnam’s clean energy infrastructure.

Sources:

https://asia.nikkei.com/Spotlight/Supply-Chain/U.S.-to-finance-500m-in-green-exports-to-Vietnam

https://asia.nikkei.com/Spotlight/Supply-Chain/U.S.-to-finance-500m-in-green-exports-to-Vietnam

https://en.baochinhphu.vn/vietnamese-us-banks-sign-mou-to-facilitate-us-exports-to-viet-nam-111240319093224765.htm

https://theedgemalaysia.com/node/698760