IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 31 Mar 2017 | Removal date: open ended
Still in force

Trade finance

The buyer’s credit loan agreements between JBIC and Vietnam Electricity has a maximum value of USD 50 million. Additionally, the private Japanese bank The Bank of Tokyo-Mitsubishi UFJ, Ltd will co-finance the loan with approximately USD 84 million, which the governmental agency Nippon Export and Investment Insurance will provide an insurance for.

The loan finances the company's purchase of a whole set of machinery and equipment including steam turbines manufactured by the Japanese company TOSHIBA CORPORATION and exported by a consortium consisting of Japanese Mitsubishi Corporation and other companies. The import these Japanese goods will enable the company to build a ultra-supercritical coal-fired power generation plant.

In this context, the JBIC stated: "JBIC will continue to support Japanese companies' overseas infrastructure business deployment, by drawing on its various financial facilities and schemes for structuring projects and performing its risk-assuming function."

Notably, a similar buyer's credit agreement was signed with Vietnam Electricity in July 2014, see related state act.

Buyer's credit agreements
JBIC provides direct loans named buyer’s credit to overseas importers. Loans are obtained if it finances the purchase of Japanese machinery, equipment or technology in specific eligible sectors. The Bank hereto stated that these loans are intended to “positively contribute to Japanese companies”. Further information can be found on the Bank’s website under export loans.
 
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets and from foreign subsidiaries.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

431 Engines & turbines & parts
8406 Steam turbines and other vapour turbines.
840681 Of an output exceeding 40 MW
840682 Of an output not exceeding 40 MW
840690 Parts

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