Two Vietnamese companies have secured loans totalling US$139 million from HSBC and Landesbank Baden-Württemberg ( LBBW ) to support their growth plans.

The transactions, both with a five-year maturity, include US$79 million for Hanoi-based private conglomerate Gelex Group and US$60 million for Thaco Agri.

Export credit agency SACE, fully owned by Italy’s Ministry of Economy and Finance, guarantees both loans.

The syndicated loan for Gelex is provided by HSBC, through its branches in Singapore and Vietnam, and Germany’s LBBW.

A key player in Vietnam’s power equipment and building materials sectors, Gelex intends to use the loan proceeds to strengthen its production capacity by integrating advanced Italian technology and machinery across its operations, from cable and transformer manufacturing to electric motors and metering devices.

Italian partnership

Over the past 18 months, Gelex has reinforced its supply chain by incorporating Italian components and production systems, enhancing both output and efficiency, according to SACE.

Gelex is also investing in sustainable and energy-efficient solutions, consolidating its leadership in the domestic market.

“This transaction strengthens our capacity to deliver on its strategic projects while reflecting the trust that global financial institutions place in the capabilities and sustainable vision of Vietnamese enterprises,” says Gelex chairman Nguyen Trong Hien.

“It marks the starting point in our broader strategy to mobilize international capital in pursuit of our long-term, efficient, and sustainable growth goals”.

At its annual general meeting held in Hanoi this March, CEO Nguyen Van Tuan said the group was seeking strategic foreign partners to help its Ho Chi Minh City-based electric wire and cable subsidiary Cadivi expand overseas.

Gelex prefers foreign partners with strong capabilities, management experience, patents, and established market presence abroad, he said.

With more than 30 years of operation and over 9,000 employees, the group covers the full spectrum of the electrical equipment value chain and has recently expanded its building materials division.

Expansion plans

The US$60 million loan to Thaco Agri, also financed by HSBC and guaranteed by SACE, underscores Vietnam’s growing relevance as a high-potential market for Italian exporters, SACE says.

Thaco Agri is part of Ho Chi Minh City-headquartered private conglomerate Thaco Group, which also makes and distributes cars, buses, trucks and motorcycles.

The financing will support Thaco’s modernization and expansion plans while strengthening commercial ties with Italian companies operating in the automotive supply chain as well as agricultural machinery and equipment.

Thaco Group, one of the most diversified and fastest-growing groups in Vietnam and backed by British multinational conglomerate Jardines, operates across sectors including automotive, support industries, logistics, agriculture, and real estate. Thaco Agri is focused on fruit production and livestock.

Industrial collaboration

Vietnam is seen as a strategic gateway in Southeast Asia for Italian exporters, offering significant potential in key sectors such as infrastructure, energy, automotive, and agribusiness, SACE notes.

"These operations with Gelex and Thaco confirm Vietnam’s strategic importance for Italian exports and industrial collaboration,” says Flavio Castri, SACE’s international relationship manager for Southeast Asia. “We are building solid bridges between Italian SMEs and major international players”.

SACE is enabling access to competitive funding for leading Vietnamese groups while fostering enduring industrial partnerships that generate concrete value for Italian SMEs and strengthen Italy’s presence in global value chains, he adds.

Tim Evans, CEO of HSBC Vietnam, says the US$60 million transaction further cements HSBC’s position in delivering sophisticated solutions to its local corporate clients. “We look forward to continuing to drive transformative financial solutions that support our clients’ visionary goals.”