Two export credit guarantee programmes are set to boost US exports to Vietnam.

The programmes aim to make letters of credit (L/Cs) more available to Vietnamese importers at preferential interest rates.

Agricultural commodities

The GSM-102 and GSM-103 schemes run by the US Department of Agriculture essentially provide credit guarantees for exports of US agricultural products.

The programmes also offer competitive credit terms to Vietnamese buyers.

Bank roles

Banks in Vietnam authorised to operate under the programmes include the Bank for Investment and Development of Vietnam, Vietcombank, MB Bank, Sacombank, Agribank, VietinBank and Techcombank.

These banks may issue L/Cs in US dollars for Vietnamese importers while several US banks will provide credit for Vietnamese banks to make L/C payments.

Terms

The GSM-102 programme covers credit periods of up to three years.

The GSM-103 covers credit periods of between three and ten years.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.