The Multilateral Investment Guarantee Agency (MIGA) and the State Bank of Vietnam (SBV) held a workshop titled “MIGA risk mitigation solutions for investments in Vietnam” on April 26th, 2016 in Hanoi.
The workshop were attended by the SBV Deputy Governor Nguyen Thi Hong, Vice President for the East Asia and Pacific of World Bank Victoria Kwakwa, Ms. Karin Finkelston, MIGA’s Vice President and Chief Operating Officer, representatives from Ministry of Transport, Ministry of Industry and Trade, Ministry of Finance, Ministry of Planning and Investment, state-owned enterprises and commercial banks.
SBV Deputy Governor Nguyen Thi Hong and Ms Victoria Kwakwa,
Vice President for the East Asia and Pacific of World Bank
Speaking at the workshop, the SBV Deputy Governor Nguyen Thi Hong stated: Since 1994, when Vietnam became an official member of the MIGA, and the SBV was appointed as a representative agent for Vietnamese Government to the World Bank, the SBV has signed Acceptance Letter for MIGA to grant guarantee for 9 foreign projects invested in Vietnam. And MIGA’s guarantee have helped mitigating non-commercial risks, boosting the confidence of foreign investors, hence creating favorable conditions for Vietnam to mobilize capital resources. Additionally, the MIGA’s participation also assists investors to expand investment and develop their business and production in Vietnam.
The SBV Deputy Governor stressed that the demand of development investment in Vietnam is really huge. Especially, in the context of the limitation of domestic resources while preferential loans from community of international donors decrease significantly, Vietnam Government is strongly encouraging international investors to increase their investment in private sector. She believed that MIGA, with its valuable and long experience, will support for Vietnam to get more resources serving for the economic development.
“This workshop is an important bridge for businesses and commercial banks to exchange their information and look for investment opportunities which both sides are interested in. Hopefully, the cooperative relationship between Vietnam enterprises and MIGA will always be consolidated and strengthened", Deputy Governor Nguyen Thi Hong said.
Deputy Governor Nguyen Thi Hong co-hosted the workshop
At the workshop, MIGA’s specialists introduced several guarantee products as well as the benefits of those products for member countries in the process of mobilizing long-term capital.
"MIGA is willing to support the government of member countries to diversify capital sources, particularly loans from international commercial lenders to implement infrastructure projects and support private sector of Vietnam for the aim of improving living standards for people throughout the country," said Karin Finkelston, MIGA's Vice President and Chief Operating Officer.
MIGA is a Political Risk Insurance and credit enhancement organization under the World Bank Group. Since 1994, MIGA has granted guarantees for 9 projects with total value of $1.1 billion invested in Vietnam. Most recently, in December 2015, MIGA issued a guarantee of $239.7 million to a consortium of lenders led by Goldman Sachs and Bank of Tokyo Mitsubishi to support the construction of the Hoi Xuan Hydropower Plant in Thanh Hoa province.
Thoa Le