The LOC Agreement to this effect was signed after the 15th meeting of India-Vietnam Joint Commission on Trade, Economic, Scientific and Technological Cooperation in New Delhi by Mr. T.C.A Ranganathan, Chairman and Managing Director, on behalf of Exim Bank and Mr. Truong Chi Trung, Vice Minister, Ministry of Finance on behalf of the Government of the Socialist Republic of Vietnam. The LOC Agreement was signed in the presence of Union External Affairs Minister H.E. Mr. Salman Khurshid, Vietnamese Foreign Minister H.E. Mr. Pham Binh Minh and diplomats from the Government of India and the Government of Vietnam.

With the signing of the above LOC Agreement, Exim Bank, till date has extended three Lines of Credit to Vietnam, at the behest of the Government of India, taking the total value of LOCs extended to Vietnam to USD 91.50 million. The LOCs have supported export of items like equipments for hydro power project, cold rolling steel, carding and spinning machines, hydraulic power equipment, tea processing machinery and the Nam Chien Hydropower Project in Vietnam.

Under the LOC, Exim Bank will reimburse 100% of contract value to the Indian exporters, upfront upon shipment of goods. The LOC will be used for sourcing of goods and services from India.Vietnam is the eastern most country on the Indo-China Peninsula in Southeast Asia. Vietnam is bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea to the east. Exim Bank has now in place 173 Lines of Credit, covering over 75 countries in Africa, Asia, Latin America, Europe and the CIS, with credit commitments of over USD 9.13 billion, available for financing exports from India. Exim Bank's LOCs afford a risk-free, non-recourse export financing option to Indian exporters. Besides promoting India’s exports, Exim Bank's LOCs enable demonstration of Indian expertise and project execution capabilities in emerging markets.