In the production workshop of XinAo Textiles (Vietnam) Co., Ltd. (hereinafter referred to as "XinAo Vietnam"), silver-gray spinning machines are running at a steady pace. Mechanical arms precisely grasp the spindles, and technicians in work uniforms monitor the data through electronic screens. The winter sunlight filtered through the factory's glass, casting a warm glow. Chinese and Vietnamese employees worked side by side, their faces radiating concentration and enthusiasm, creating a vibrant and energetic scene within the factory.
From Tongxiang, Zhejiang to Hanoi, Vietnam, from the textile production lines to the financial links, the project of XinAo Vietnam has connected the industrial prosperity and cultural exchange between China and Vietnam. The innovative practice of joint domestic and overseas loans by the Agricultural Bank of China Zhejiang Branch (ABC Zhejiang Branch) and the Hanoi Branch has injected financial momentum into the capacity cooperation of China and Vietnam under the Belt and Road Initiative - this is not only the story of a company's overseas expansion, but also a chapter of the times where banks and enterprises join hands and share a common future.
From Tongxiang to Hanoi: Weaving Industrial Chains Linking Across Globe
With the continuous deepening of trade globalization and the accelerated integration of regional economies, "going global" has become a strategic choice for more and more textile enterprises to lay out their global business. Building a factory in Vietnam is a "timely" move by XinAo Group, the parent company of XinAo Vietnam.
XinAo Vietnam was registered and established in May 2023, initiating the investment and construction of the 50,000-spindle high-end fine-spun ecological yarn textile dyeing and finishing project in Vietnam (hereinafter referred to as the "XinAo Vietnam Project"), which will be built in two phases. The 65,000-square-meter modern factory is XinAo Group's first overseas self-built production base. Currently, the first production line of the first phase with 20,000 spindles has entered the production stage, and the remaining production lines will undergo phased commissioning and gradually go into operation. The project is planned to be fully completed and put into operation by 2027, when it will have an annual production capacity of 6,500 tons of fine-spun yarn, and the products will be directly supplied to the markets in Southeast Asia, Europe and America.
"Since our cooperation began in 1995, the financial cooperation between ABC and XinAo has lasted for 30 years. We have formed a deeply coordinated partnership in areas such as cross-border payment, trade financing, and green finance," recalled Hu Jun, deputy president of ABC Zhejiang Branch. Over the past 30 years, ABC Zhejiang Branch has accompanied XinAo from Tongxiang to the world, providing full-chain financial services covering RMB business settlement, international business settlement, various cross-border remittances, bill clearing, deposit and loan services, etc.
When XinAo Group planned to invest in a project in Vietnam, it faced significant challenges - Vietnam requires local financial institutions to be involved in foreign-funded projects, and XinAo Vietnam, as a newly established company, lacks local credit records.
Based on three decades of cooperative trust, ABC Zhejiang Branch, in collaboration with ABC Hanoi Branch, came up with a tailor-made solution - an intra-group syndicated loan. The prompt response from the Zhejiang Branch gave XinAo Group a sense of reassurance.
On February 21, 2024, ABC officially approved a fixed asset loan credit line of 650 million yuan for the project and provided the loan through a syndicated loans arrangement between ABC Zhejiang Jiaxing Tongxiang Sub-branch and ABC Hanoi Branch.
"Building the XinAo Vietnam project is an important measure to adapt to changes in the international situation and promote the globalization of the enterprise," XinAo Group stated. Vietnam is located at the center of Southeast Asia and serves as a crucial hub connecting the Asian and global markets. It has signed free trade agreements with multiple countries and regions, enjoying policy dividends. Moreover, with advantages in labor and trade costs, Vietnam has become a hot spot for textile industry investment.
Syndicated Loans Innovation Makes Breakthrough for Cross-Border Financing
Cross-border investment often encounters challenges such as regulatory differences and capital allocation. However, the XinAo Vietnam project has broken through these obstacles through the innovative "direct loan for overseas projects + intra-group syndicated loans" model pioneered by ABC: domestic branches provide foreign currency loans, while overseas branches offer local currency (Vietnamese dong) funds, which not only meets local regulatory requirements but also reduces exchange rate risks.
"The Hanoi Branch has fully leveraged its local advantages, providing a one-stop service from due diligence to account opening," said Zhou Ye, general manager of ABC Hanoi Branch. The professional team of the Hanoi Branch conducted in-depth on-site research at the project site, comprehensively grasping the key aspects such as project compliance review, progress control, and construction quality through on-site inspections, document verification, and interviews. This provided detailed and reliable on-site evidence for project risk assessment and decision-making. At the same time, it utilized its local operational advantages in Vietnam to actively offer consulting services to XinAo, including local foreign exchange management policies, financial management requirements, and tax regulations.
The picture shows the spinning equipment at XinAo's Vietnam factory. (Photo provided by XinAo Group)
In August 2024, the first tranche of 5 million euros was successfully disbursed. During this process, ABC Hanoi Branch fully utilized its professional expertise, assisting the enterprise in efficiently fulfilling Vietnam's financial regulatory compliance requirements. By optimizing the account opening process and customizing financing solutions, it significantly shortened the business implementation cycle, providing strong support for the project's capital operation. In December 2024, the first phase of the project was put into operation as scheduled, which was the result of the "dual-front operation" of the Zhejiang Branch and the Hanoi Branch - the Zhejiang Branch handled domestic approval procedures, while the Hanoi Branch coordinated with Vietnamese regulators, ultimately achieving "zero time lag" between loan disbursement and project construction.
The picture shows XinAo's Vietnam factory under construction. (Photo provided by XinAo Group)
Advancing From Mere Capital Injection to Three-Dimensional Service System
The XinAo Vietnam project is a microcosm of the integration of the industrial chains between China and Vietnam, and it is also a practical sample of ABC Zhejiang Branch's service for the Belt and Road Initiative. As the first overseas fixed asset loan of the branch, the project witnesses the cross-border financial service field of ABC Zhejiang Branch expanded from international settlement and trade financing to project financing, providing a replicable model for subsequent cross-border investment and financing services.
ABC Zhejiang Branch has been awarded the "First Prize for Supporting Zhejiang's Economic and Social Development" for 14 consecutive years, serving over 21,000 outward-oriented enterprises, with an annual international settlement volume of nearly 150 billion U.S. dollars. As of the end of June 2025, the balance of loans to foreign trade enterprises of ABC Zhejiang Branch was nearly 200 billion yuan, an increase of over 20 billion yuan compared to the beginning of the year, with an increase rate leading the industry.
From single financial support to in-depth strategic collaboration, ABC Zhejiang Branch has established a three-dimensional service system: precisely irrigating the core of the industrial chain through the integration of industry and finance, consolidating the risk defense line through the collaboration of government, banks, and insurance, and empowering cross-border trade with digital Silk Road technology. In recent years, the bank has focused on Zhejiang's advantageous industries such as textiles and new energy, launched cross-border supply chain financial solutions, and provided full-chain financing support for upstream and downstream enterprises through the credit penetration of leading enterprises; at the same time, it has jointly established a special credit line with the China Council for the Promotion of International Trade Zhejiang Provincial Committee and China Export & Credit Insurance Corporation, and established a dynamic management mechanism for the white list, raising the scale of credit insurance financing to a new height, providing a combined escort of "finance + credit + policy" for Zhejiang enterprises' "going global".
"In participating in the construction of the Belt and Road, ABC not only strikes a balance between strategic support and commercial sustainability, but also promotes the transformation from 'scale expansion' to 'high-quality development' by strengthening risk control and deepening international cooperation through the application of innovative financial tools, thus advancing the Belt and Road as a path of shared success," said Hu Jun. (By Liu Wanqiu)
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