Eight banks are collaborating to implement a four-party linkage model.

On the afternoon of June 11th in Hanoi, the Vietnam Investment and Development Bank (BIDV) organized the signing ceremony to launch a four-party linkage product in the construction and transportation sectors, as part of a project by the State Bank of Vietnam (SBV).

Four supply chains were initiated at the signing ceremony.

Eight banks have signed agreements to launch the "four-party" linked product: BIDV, Agribank, VietinBank, Vietcombank, VNCB, SHB, LienVietPostBank, and MHB.

The "four-party" linkage project (investor-contractor-construction material supplier-bank) in the construction sector was created to ensure transparency in the construction market, thereby restoring market confidence and the trust of participating entities, and contributing to promoting economic transactions in investment, construction, and real estate business activities.

The four-party supply chain credit model is a new type of credit product with many benefits for all parties involved, including the lending bank, the investor, the contractor, the supplier, the end user, and the economy as a whole.

Besides accelerating social housing projects, the State Bank of Vietnam's plan also expands to projects in the transportation sector, especially the upgrade packages for National Highway 1 and National Highway 14, infrastructure construction, energy, and several other areas.

At the signing ceremony, four supply chain linkages were initiated in the construction and transportation sectors with a total investment of VND 7,778 billion, of which banks provided credit support of VND 6,149 billion.

Link chain 1:BIDV is the lead bank for the implementation of the cultural and entertainment park project southeast of the memorial (Da Nang City) with a total investment of VND 2,100 billion. BIDV signed a financing contract with the investor for VND 1,444 billion. Specifically, BIDV is the bank financing the investor, Vietcombank is the bank serving the contractor, and Agribank is the bank serving the construction material supplier.

Link chain 2:BIDV is the lead investor in the BOT project to expand National Highway 14, section Pleiku Km1610 – Bridge 110 Km1667+570, Gia Lai province, with a total investment of VND 1,776 billion. Of this amount, BIDV signed a contract to finance VND 1,360 billion for the investor.

Link chain 3:SHB is the lead bank in initiating the short-term linkage chain for the BOT project to expand National Highway 1 from Km 947 to Km 987 through Quang Nam province. SHB serves the investor and Agribank serves the contractor. This project has a total investment of VND 1,258 billion, with SHB signing a financing contract for VND 1,006 billion.

Chain of links 4:Vietinbank is the key entity in creating a short-term linkage for the BOT project to expand National Highway 1 through Khanh Hoa province. Vietinbank serves the investor, and BIDV Tay Ha Noi serves the contractor. The project has a total investment of VND 2,644 billion, with Vietinbank providing financing of VND 2,339 billion.

According to chinhphu.vn