US & Vietnam Sign $500 mn MOU to boost green economy

19 Mar '24

2 min read

MoU signing ceremony. Pic: US Embassy and Consulate in Vietnam

Insights

EXIM and VDB have inked a $500 million MOU to enhance US exports to Vietnam, centring on green economy and infrastructure projects.
Formalised in Hanoi, this initiative underscores the commitment to sustainable development and bolsters US-Vietnam trade relations.
The agreement targets financing for essential green transition projects in Vietnam.

In a move to enhance economic cooperation and support green transition initiatives, the Export-Import Bank of the US (EXIM) and the Vietnam Development Bank (VDB) have entered into a $500 million Memorandum of Understanding (MOU). This strategic agreement, aimed at facilitating US exports to Vietnam, was formalised in a ceremony held at VDB's headquarters in Hanoi.

Under the leadership of EXIM president and chair Reta Jo Lewis and VDB chairman Le Van Hoan, the MOU paves the way for a collaborative effort to finance US exports in key areas such as green economy transition, infrastructure development, and climate-related projects in Vietnam. This initiative not only underscores the commitment of both nations to sustainable development but also strengthens bilateral trade relations, the US Embassy and Consulate in Vietnam said in a press release.

The agreement focuses on identifying and financing a range of projects, including infrastructure and renewable energy, that are essential for Vietnam's transition towards a greener economy.

“The MOU we signed demonstrates our shared commitment to strengthening the US-Vietnam commercial relationship and dedication to creating opportunities that strengthen the economies of both our nations,” said Chair Reta Jo Lewis Lewis. “We are excited to collaboratively seek financing opportunities to advance mutually beneficial projects and support US exporters looking to do business in Vietnam.”

“Guided by the joint leaders’ statement on elevating US-Vietnam relations to a comprehensive strategic partnership, our two organisations will contribute to enhance economic exchanges between the two countries.” said Chairman Le Van Hoan. “I believe that the signing of MOU today will strengthen our cooperative relationship, laying the foundation for potential collaboration opportunities. This will contribute to aiding both organisations in successfully accomplishing the tasks entrusted by our respective governments.”

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