Mixed Credits Now Available for Private Companies in Vietnam

Visiting Hanoi with the purpose of promoting the use of mixed credits in Vietnam’s private sector, a delegation from the Danish Mixed Credit Secretariat held a press conference at the Danish embassy last week.
     The Danish mixed credit is an interest-free loan with 10 years’ maturity to finance development projects in developing countries. For private companies, projects to be funded through the Mixed Credit programme must be between 1 million USD and 2,7 million USD in size. All projects that support development areas such as job generation, export promotion, or production of imported substitutes will be eligible for financing through the mixed credits programme.
     At the press conference last week, Denmark’s ambassador – Mr. Peter Lysholt Hansen – explained the new focus on the private sector in Vietnam.
     “It is in line with the Danish development policy to support the private sector. It is also very much in accordance with the policies of the government of Vietnam as the Vietnamese private sector is now an actual driving force in the national economic growth and poverty reduction,” he said. 

Danish mixed Credits have been available in Vietnam since 1995, supporting development projects within the public sector. During this period, almost 20 contracts have been signed between Danish suppliers and Vietnamese agencies for a total amount of approx. 375 million DKK.
     The majority of the projects are found within the water supply and sanitation sector as well as in food processing, which have dramatically improved the local production capabilities, the Danish embassy reports.
     An additional 10 projects with a total contract value of approx. 400 million DKK are currently being prepared. Most of the proposed projects are within the water supply, wastewater treatment, and vocational training.

For more information about the Danish Mixed Credits in Vietnam, go to the official website of the Danish embassy in Hanoi: http://www.ambhanoi.um.dk/

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