US EXIM: How to Get it

US EXIM: How to Get it

On June 16, 2005, the VCCI branch in Ho Chi Minh City and US Consulate General introduced the financial programme on US equipment export (US EXIM) to nearly 60 businesses of different sectors. This is a form of medium and long-term credit (5-7 years) without collateral and little binding. Under the programme, enterprises importing American equipment will gain credits sponsored by the US EXIM Bank. The programme can provide loans up to 85 per cent of the import contract value and up to 40 per cent of the capital of the borrower. The Toronto - Dominion Bank (TD Bank), on behalf of importers, will be responsible for the process. The purpose of the programme is to boost the export of American products and services.

TD Bank

The TD Bank was established in 1885 with its head office in Toronto, 50,000 staff worldwide and is among the top ten of North American banks. In both the Toronto and New York stock markets, TD is the share of TD Bank. It is also the world’s largest import financing bank. In 2003, the TD bank had 59 import transactions with a total value of USUS$196 million. In 2004, it had some 100 similar transactions and was recognised by US EXIM as “Bank of 2004”. The TD Bank has managed both large and small transactions, from USUS$0.5 to USUS$80 million. It is a designated partner of US EXIM bank in Asia with 30 years in experiences and offices in Tokyo, Seoul, Taipei, Hong Kong, Singapore and Sydney.

Conditions

The programme covers equipment and services (excluding military and defence related items) transported from the US to Vietnam, manufactured in the US or 50 per cent manufactured in the US. The equipment and services include such sectors as construction, electricity generation and transmission, medical equipment, equipment relating to infrastructure (air conditioners, electric generators), environment, waste treatment and others. Required documents include ownership status, management, business and financial efficiency, import documents, financial reports for the last three years and a temporary report for the current year. Also required are introductory letters from a bank and a supplier.  There are also other conditions such as at least three years in a business, profit making in the last two years, etc. However, a company failing to meet those conditions can get the financial support if it could prove the ability of payment.

The whole process will take 12-14 weeks with evaluation of financial situation, import transaction, commitments, endorsement by US EXIM and Vietnam State Bank, disbursement.

• Cong Ly