Investors from Japan have pledged to provide approximately US$1.8 billion in capital to finance a coal-fired thermal power plant in Vung Ang of Ha Tinh province, according to business publication Bloomberg on Dec. 30.

 Vung Ang Economic Zone in Ha Tinh province (Photo: VNA)

The piece outlines how the Japan Bank for International Cooperation will provide a sum of US$636 million for the Vung Ang II thermal power plant, equivalent to 30% of the total investment needed for the project.

Other lenders to the site will include three of Japan's leading banks, along with the Export-Import Bank of Korea, and the trading house Mitsubishi Corporation.

This comes after approximately 5% of Official Development Assistance (ODA) loans provided by the Japanese Government in 2018 were spent on investing in coal fired power projects, mainly in Vietnam and Bangladesh.