Eleven Japanese banks, including Mitsui Sumitomo Banking Corp and Japan Bank for International Cooperation (JBIC), will provide a 81 billion JPY (680 million USD) loan for the Electricity of Vietnam (EVN) to build a thermal power plant.

Accordingly, JBIC will supply the majority of the loan with more than 400 million USD while 8 regional banks will lend a combined 100 million USD.

The EVN will use the funds to purchase power-generating equipment from Japan’s Hitachi Company.

Vietnam’s economic growth is driving electricity demand, making power shortages an urgent concern.

In order to create a favourable environment to attract more foreign investment, the Vietnamese government is hastening the construction of power plants.