US$53Mln Credit Agreement Inked for Float Glass Plant in Central Vietnam

The Vietnam National Coal and Mineral Industries Group (Vinacomin) and four local banks August 14 signed a credit contract valued at VND845 billion (US$52.8 million) to build the Chu Lai float glass factory in the central province of Quang Nam, state media said Tuesday.

 

The Bank for Agriculture & Rural Development of Vietnam lent VND500 billion (US$31.25 million), the Saigon-Hanoi Commercial Joint Stock Bank VND150 billion (US$9,375), the Dai Duong Joint Stock Commercial Bank VND150 billion and the Coal & Mineral Financial single member company VND45 billion.

 

The credit agreement will be valid in eight years, said a Vinacomin official. However, he did not mention of the interest rates and other information.

 

Kicked off February 2, 2007, the VND1.3 trillion (US$81 million) facility is now under construction and is scheduled for completion in mid-2008, the official added.

 

Once in place, the factory can produce over 40 million sq.m of glass a year with Japanese standards and thickness ranging from 2.5cm to 4.5cm.

 

The factory is expected to obtain annual revenue of VND1 -2 trillion and to refund all the loans and interest within ten years.

 

The 1,000-ha-Chu Lai glass factory is expected to create 400 jobs. (Vietnam Economic Times)