Mizuho Bank, the second largest bank of Japan, December 21 signed a credit agreement with Vietnam’s leading coffee exporter, Vinacafe Buon Ma Thuot, to help it further expand its trademark in Japanese market.
Under the deal inked with a Vinacafe’s affiliate, the Tay Nguyen Coffee Import-Export and Investment JS Co, Mizuho Bank will extend loans at preferential rates up to the value of coffee export contracts signed between Vinacafe Buon Ma Thuot and Japanese importer Marubeni.
The exact amount of the line of credit from Mizuho Bank was not made available, however.
The agreement is part of an overall strategy by Mizuho’s to finance Asian producers of major agricultural and natural resource products, General manager of Mizuho’s Hanoi branch said.
He confirmed that the bank is willing to extend credit to other distinguished companies in Vietnam.
Mizuho currently has relationship with many Vietnamese groups like Vinacomin, EVN, and Vinalines.
Vinacafe Buon Ma Thuot General Director, Vu Duc Tien, said Marubeni was its biggest partner in Japan, adding that Marubeni has already ordered 20,000 tons of coffee in the 2007-08 crop.
Tien said the two companies are considering building an instant coffee processing mill with total investment of US$15-20 million in southern Binh Duong province. Almost all of the mill’s output of around 3,000 tons per annum will be sold by Marubeni.
Vinacafe Buon Ma Thuot, previously a subsidiary of Vietnam Coffee Corporation (Vinacafe), was privatized in 2004, with Vinacafe now holding less than a 40 per cent stake.
Located in central highlands Buon Ma Thuot city, the company now accounts for 20 per cent of Vietnam’s total coffee exports. It reportedly reaped US$296 million revenues in the first 11 months of 2007.
Vietnam is expected to ship 30,000 tons of coffee to Japan this year, up by 15 per cent on year. (Vietnam Economic Times, Investment)
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