Most Vietnamese companies need capital to expand their operations but not many firms can successfully access local sources of capital. Can they seek capital from the US?

There are many sources of capital and investment funds in the US. The sources of capital are not only government organisations but also private sources are ready to support investment projects in the US or outside the US, for example the Overseas Private Investment Corporation (OPIC) is a financial investment institution of the US government.

The OPIC provides capital for American citizens who have joint ventures with partners outside the US. Vietnamese companies that have joint ventures with American individuals or companies can get access to the capital of OPIC.

There are many similar institutions like OPIC in the US. In addition, the US has many big capitalists who set up investment funds to invest in potential projects everywhere.

Our corporation, Unlimited Financial Network, also provides investment consulting service and seeks projects and investment opportunities for both Vietnamese enterprises and American financial funds.

What projects in Vietnam are American financial funds interested in?

They pay special attention to real estate projects in Vietnam and projects in other potential areas. Each fund and financial institution has different requirements for projects that they invest in.

For example, OPIC requests that firms whom they provide capital to have equity capital and they will lend around 25% of the total capital. Projects must help improve the living standards of local people, etc.

OPIC currently has around $4 billion of capital and it gives loans to projects outside the US, except for those in countries that are not friendly to the US. OPIC’s lending interest rate is quite attractive, around 5-6%/year for medium- and long-term loans.

Have you helped any Vietnamese businesses or projects to receive capital from US financial institutions and investment funds?

So far two projects have successfully accessed capital sources from the US. The first project is to plant 10ha of cocoa trees in the south worth US$27 million, $20 million of which is being borrowed from a private fund. This project is underway.

We are considering the third project of a general hospital in HCM City. This hospital wants to borrow capital to pay its debts. So far, no project in Vietnam has accessed the capital of OPIC. One of the reasons is their technical reports don’t satisfy the standards of OPIC. We will work with the HCM City Economic University to open a training course on how to write technical reports under OPIC requirements.

Source: TBKTVN.