BNP Paribas is to provide letter of credit (L/C) services in support of a major order from Vietnam for US-made telecommunications equipment.

The L/Cs will be provided to help Lockheed Martin Space Systems Company export telecommunications and satellite equipment as well as additional goods and services to Vietnam in an order supported by the Export-Import Bank of the United States (Exim Bank).

Loan approval

Exim Bank recently approved a US$118 million direct loan to the government of Vietnam for the export of the equipment.

This is Exim Bank's first satellite transaction with the government of Vietnam, and the US export credit agency's support is expected to stimulate total export sales of US$215 million.

The order will support approximately 525 full-time equivalent US jobs, according to Lockheed Martin estimates.

Growing demand

The customer is the Hanoi-based Vietnam Post and Telecommunications Group, a state-owned enterprise that hopes to satisfy the growing demand for telecommunications and television services in the region.

As well as providing L/C services, BNP Paribas will serve as the documentation agent for Exim Bank-supported business in this order.

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