With the long-term goal of building better economic relations between China and Vietnam, the Ho Chi Minh City branch of Bank of China has recently signed up to offer a syndicated loan of $103 million to Vietnam-based subsidiary of Chinese cotton yarn manufacturing giant Texhong Textile Group, which has four bases in Vietnam.
The loan is being provided by eight foreign and Vietnamese banks, including Bank of China.
It is expected that this new economic deal will help enhance their economic relations and garner further investment for the development of the textile and garment industry of Vietnam, apart from further expanding production capabilities of Texhong Galaxy Technology Company, set up in the northern province of Quang Ninh with an investment of $300 million.
During the official signing of the syndicated loan on Wednesday, Wang Hao, the director of Bank of China’s Ho Chi Minh City branch, thanked the Chinese firms that are expanding their business in Vietnam, since this has created opportunities for the bank to offer enhanced services to this country, and as a result help in improving economic ties between the two countries.
According to him, trade between the two countries this year is expected to exceed $100 billion, with Vietnam overtaking Malaysia to become China’s biggest trading partner in Southeast Asia.
Meanwhile, General Director of Texhong Galaxy Technology Company Huang Yiyong assured Vietnam of generating more jobs for its people, while contributing further to the Vietnamese state budget and facilitating technology transfer.
