Ten-year credit for projects with 75% of equipment and services being Indian.
The Vietnam Textile and Apparel Association (VITAS) has announced that the Indian Government has officially provided a preferential credit package of $300 million to Vietnam with the aim of promoting cooperation in the field of textiles between the two countries.
The $300 million will go to investment projects in the textiles sector with 75 per cent of equipment and services coming from India. The loan term is ten years with an interest rate of 2 per cent per annum. Transactions will be conducted through the Vietnam Export Import Commercial Joint Stock Bank (Eximbank).
VITAS believe the credit package will help Indian companies develop factories in Vietnam and at the same time encourage Vietnamese companies to expand their cooperation with Indian partners. This is also an opportunity for businesses to gain more advantages after joining the Trans-Pacific Partnership (TPP).