ANNOUNCEMENT 01 Apr 2011In April 2011, the government of Japan announced a change in its trade finance instruments.
NUMBER OF INTERVENTIONS
"Untied Loan for Vietnam Development Bank (VDB)" 1 April 2011. Press release found at http://www.jbic.go.jp
On 1 April 2011 the Japanese Finance Corporation (JFC) provided an "untied" loan of 100 million USD to the Vietnam Development Bank. According to the relevant JFC press release "This loan primarily aims to finance locally operating Japanese affiliates and subsidiaries and the local supporting industries utilized by Japanese firms. The enhancement of local supporting industries will contribute to the stabilization of the Vietnamese economy and also benefit Japanese affiliates and subsidiaries through providing better access to stable supplies of raw and other materials, with better quality and at lower cost. The loan is also expected to be utilized for trade finance in Vietnam. Better access to funding opportunities in Vietnam through this facility will contribute to further boosting business collaboration between Japan and Vietnam, a country of increasing importance for Japanese firms."
Such measures disadvantage non-Vietnamese firms that might supply Japanese subsidaries in Vietnam.