$4.6 million funding in place for Song Lam 2 Cement Plant.
The Bank for Investment and Development of Vietnam (BIDV), Phu Dien Branch, and the Song Lam 2 Cement Joint Stock Company held a ceremony today in Nghe An to sign a credit agreement.
BIDV will loan the Hoang Phat Vissai Group Company (Vissai), which owns Song Lam 2, VND100 billion ($4.6 million) with a six-month term to fund the construction of the cement plant. Vissai bought the project at the beginning of the year from the PetroVietnam Construction Joint Stock Company (PVC).
The project's technology can bolster capacity from 90,000 tons to 600,000 tons of cement per year but was temporarily halted due to a lack of capital on PVC’s part before Vissai took over.
The size of the project will create the conditions for improved socio-economic development in the north-central region in particular and in Vietnam in general.
Established in 2004, Vissai is involved in many business lines, including the production of cement, iron and steel, the hotel business, cargo transport by road, waterway and seaway, the production of textiles and garments, the real estate business, and financial investment. Vissai has a head office in Ninh Binh and three other cement plants in Nghe An and northern Ha Nam and Lang Son provinces with a total capacity of 10.6 million tons of cement per year.
Founded on April 26, 1957 under the name Bank for Construction of Vietnam before changing to BIDV in 2012, BIDV has funded many investment projects and key economic areas of the country. It has also built the largest base of business customers while implementing the objectives and economic programs of the country.