Completed Development AidData Chinese Aid

China Eximbank provides RMB 49 million concessional loan for Plastic Mould Factory Construction Project

¥49.01M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Vietnam Ministry of Finance
Country	Viet Nam
Start Date	Nov 01, 2005
End Date	Apr 26, 2026
Duration	7,481 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`63300`

Grant Description

China Eximbank provides RMB 49 million concessional loan for Plastic Mould Factory Construction Project In 2005, China Eximbank and the Vietnam Ministry of Finance signed an RMB 49,010,105 concessional loan agreement for the Plastic Mould Factory Construction Project).

📋 Loan / Grant Terms

💰 Loan Amountcarried the following borrowing terms: a 15-year maturity

📅 Maturity15 years

⏳ Grace Period5 years

💹 Interest Rate3.2%

It was scheduled for semi-annual repayments between September 10, 2011 and March 10, 2021.

Then, in 2006, Vietnam Development Bank and Vinaplast (Công ty CP Nhựa Việt Nam) — a Vietnamese a state-owned enterprise — signed a credit contract (No. 01/2006/HĐTĐ-ODA-TDTW1) for this project.

The ultimate borrower (Vinaplast) used the China Eximbank loan proceeds to finance a RMB 49,010,105 commercial contract with China Shanghai Group Corporation for Foreign Economic & Technological Cooperation (SFECO).

The purpose of the project was to acquire and install machinery and equipment at the factory of Vietnam Plastic Joint Stock Company and Thang Long Plastic Joint Stock Company in Tien Son Industrial Park (Bac Ninh), the factory of Bac Giang Plastic Joint Stock Company, the factory of the Van Don Plastic Joint Stock Company in My Phuoc 2 Industrial Park within Ben Cat District (Binh Duong), and the factory of Phu Plastic Joint Stock Company in Ho Chi Minh City.

In September 2006, SFECO began to deliver the equipment and machinery to Vinaplast. All of the machinery and equipment was completely installed by March 2007. Mr. Tran Hong Phong, Mr.

Vu Viet Hoan, former Chairman of the Board of Directors of Bac Giang Plastic Company, subsequently reportedly that the machines that his company received were of poor quality and not worth the money that was spent.

He reported that "some machines broke down immediately, the capacity was only 30-40% of the theoretical capacity, and they had to be repaired continuously while the auxiliary equipment was not available."

📋 Staff Comments

The Vietnamese project title is Dự án sản xuất khuôn mẫu nhựa và trục in Việt Nam. The Chinese project title is 兴建生产塑料模具和注塑项目. The Vietnamese name for Vinaplast is Công ty CP Nhựa Việt Nam.
The China Eximbank loan that supported this project is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020.
Source #136998 claims the interest rate is actually 3.4% and 2-year grace period-- not 3.2% and a 5-year grace period. AidData relies on the latter terms because it comes from a seemingly more reliable source (see source #137001).

📚 Sources & References

Bitter taste when depending on Chinese loans
Viet Nam
China for comprehensive ties
Impact of China's Rise on the Mekong Region - Yose Santasombat
中国与越南双方签订14个合作文件
Living next to the giant: The political economy of Vietnam’s relations with China under Doi Moi
China's Overseas Development Finance, 14 văn kiện hợp tác Việt Nam - Trung Quốc, 'Quả đắng' nhà thầu Trung Quốc: Mua máy móc về...'trùm mền'?
Vinaplast: lãi ít, cổ đông nghi ngờ
Vinaplast thiếu minh bạch thông tin?
Vinaplast: Vốn Nhà nước “trôi” dần, trách nhiệm thuộc về ai?
Công ty Nhựa Việt Nam: Vay ODA Trung Quốc mua máy móc thiết bị Trung Quốc chất lượng thấp
BÁO CÁO THƯỜNG NIÊN CÔNG TY CỔ PHẦN NHỰA VIỆT NAM
Vinaplast thoái vốn để có tiền trả cổ tức
BÁO CÁO THƯỜNG NIÊN CÔNG TY CỔ PHẦN NHỰA VIỆT NAM
CÔNG TY CỔ PHẦN NHỰA VIỆT NAM BÁO CÁO TÀI CHÍNH RIÊNG ĐÃ ĐƯỢC KIÊM
CÔNG TY CỔ PHẦN NHỰA VIỆT NAM BÁO CÁO TÀI CHÍNH HỢP NHẤT ĐÃ ĐƯỢC SOÁT XÉT
Lễ đón và Hội đàm giữa Tổng Bí thư Nông Đức Mạnh
Chủ tịch nước Trần Đức Lương và Tổng Bí thư
Chủ tịch nước CHND Trung Hoa Hồ Cẩm Đào Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.