JSC Bank for Foreign Trade of Vietnam (Vietcombank) and Export-Import Bank of Thailand (EXIM Thailand) signed a Bilateral Investment and Trade Promotion Agreement on the afternoon of November 16, 2022 in Bangkok, Thailand, in the presence of President of Socialist Republic of Vietnam, H.E. Nguyen Xuan Phuc and Prime Minister of the Kingdom of Thailand, H.E. Prayut Chan-o-cha during the official visit to Thailand and attending the Asia-Pacific Economic Cooperation (APEC) Summit 2022 by H.E. Nguyen Xuan Phuc from November 16 to 19, 2022. The formal signing ceremony took place at the Government House of Thailand after the official meeting between the President of Vietnam and Prime Minister of Thailand.
The officer representing Vietcombank to sign the Agreement was Mr. Nguyen Thanh Tung, Deputy CEO in charge of the Board of Management, and the counter-signatory from EXIM Thailand was Dr. Rak Vorrakitpokatorn, President.
The officer representing Vietcombank to sign the Agreement was Mr. Nguyen Thanh Tung, Deputy CEO in charge of the Board of Management, and the counter-signatory from EXIM Thailand was Dr. Rak Vorrakitpokatorn, President in the presence of President of Socialist Republic of Vietnam, H.E. Nguyen Xuan Phuc and Prime Minister of the Kingdom of Thailand, H.E. Prayut Chan-o-cha. (Photo: VNA)
EXIM Thailand is a specialized bank for investment and trade promotion owned by the Government of Thailand and under direct supervision of the Ministry of Finance of Thailand, with the operating mandate to promote Thai trade and investment with overseas markets. Meanwhile, Vietcombank is the leading commercial bank in Vietnam with great advantages in international payment, trade finance and a wide range of diversified and tailor-made products and services for customers who are foreign investors into Vietnam, including those with Thai origin.
Inheriting the Memorandum of Understanding dually signed by the two banks at the end of 2020, the new Agreement aims to identify key areas of cooperation to promote bilateral investment and trade, with focuses on such aspects as international payment, trade finance, project co-financing, corporate loans against each party's guarantee. The scope of cooperation is not only in the boundary of Vietnam and Thailand but may also be expandable to other markets in the region. The two banks aim to increase the total volume of trade finance and project co-financing under this Agreement to approximately $250 million in the first year after the signing and keep growing it steadily in the years that follow.
As of December 31, 2021, Thailand has 645 on-going projects in Vietnam with a total registered capital of over USD 13 billion, ranking 8th out of 140 nations and territories and 2nd among ASEAN countries that have foreign investment in Vietnam. Thai investment inflow into Vietnam goes mainly into such industries as manufacturing, processing, energy, petrochemicals, industrial real estate, etc. Cooperation agreement between Vietcombank and EXIM Thailand is expected to help attracting more investment from Thailand into Vietnam, further strengthen the bilateral trade and investment, as well as better support companies from the two countries to promote business cooperation./.