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Socialist Republic of Viet Nam/NEXI to provide Export Credit Insurance for Export of Earth observation satellite system to Vietnam National Space Center


August 18, 2020

Nippon Export and Investment Insurance

Nippon Export and Investment Insurance (NEXI; Chairman and CEO: Atsuo Kuroda) has decided to provide Sumitomo Corporation with Export Credit Insurance for its export of earth observation satellite ordered by the Vietnam National Space Center (VNSC) in the Socialist Republic of Vietnam (Vietnam).

The order also includes the manufacture and launch of the earth observation satellite from a rocket-launch site in Japan, in addition to development of a ground system, and local human capacity building programs related to satellite development processes and satellite date utilization. This is the first satellite project by a Japanese company using Official Development Assistance funds.

As in Japan, Vietnam is facing a high risk of frequent and large-scale natural disasters, including heavy rains, typhoons and floods over recent years. The introduction of monitoring system to continuously check disaster-related damage status is an urgent task on which the Vietnamese government should work. With the satellite, the government intends to improve monitoring capabilities and enhance the ability to forecast natural disasters in order to reduce and prevent damage nationwide.

Through the supply of earth observation satellite system and assistance in personnel development, the project will contribute to measures against natural disasters and climate changes in Vietnam. We believe that the project also makes a contribution to Japanese firms’ expansion of overseas business in the space sector, which is stated in the Japanese government’s Infrastructure System Export Strategy, and thus, as Japan’s policy-based financial institution, NEXI support by providing insurance for the project is of great importance in this context.

As a governmental financial institution, NEXI will continue to actively promote Japanese firms’ overseas business development and infrastructure exports.


Reference:
Insured Sumitomo Corporation
Tenor 4years
Covered Risks Pre-shipment: political risk 80% and commercial risk 80%
Post-shipment: political risk 100% and commercial risk 90%

Contract: Overseas Investment Insurance Underwriting Group, Underwriting Department
Tel: +81-(0)3-3512-7668

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