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Investment opportunities for private businesses (23/5)
23/05/2013 - 11 Lượt xem
Vietnam Economic News’ Viet Anh
interviewed VBCF Chief Executive Officer (CEO) Javier Ayala on the
occasion the fund called grant proposals for Hanoi-based projects in the
second phase.
What are VBCF’s views on the Vietnamese market?
Vietnam
has made a shift from developing an agriculture-based economy to
promoting the manufacture of products with added value. Vietnam has been
considered as one of the fastest growing economies in the world over
the last several decades. Based on significant economic development
achievements, Vietnam has become a middle-income country.
However, as we know, millions of
Vietnamese people in rural and suburban areas still have no access to
the market and basic services as well as opportunities for increased
incomes. These people represent a potential market segment for
businesses to develop through cooperation with them.
VBCF was established in Vietnam in November 2012. Could you tell us about its goals?
VBCF’s operations focus on
consultancy and financial, technical assistance for private businesses
which want to develop a creative business model that allows low-income
people to participate in their business chains based on the principles
of mutual benefit. Such a model has proved to be a sustainable
development model that is suitable to the challenges faced as well as
national development strategies of Vietnam. We wish to see Vietnamese
businesses succeed with business models that benefit the poor.
What conditions Vietnamese businesses must meet to receive a capital grant?
Businesses with creative
business ideas, profit potential and the participation of low-income
people, operating in the fields of agriculture, green growth,
small-scale infrastructure and basic services will be provided with
consultancy and financial assistance with the minimum grant of
US$100,000 and the maximum grant amounting to US$800,000. The business
ideas must deal with one of the following challenges: 1) create added
value for domestic and international agricultural value chains and at
the same time benefit low-income people; 2) introduce
environmentally-friendly production models and technologies at a
household level; 3) introduce infrastructure solutions (irrigation,
storage, drying, collection...) for household product chains; 4) apply
sustainable energy and low carbon emission solutions which attract the
participation or benefit low-income people; 5) minimize environmental
pollution and improve economic conditions of the low-income community
through turning waste into energy; 6) provide housing, clean water,
sanitation service and rural infrastructure (roads, sewerage, irrigation
works...) solutions for rural households; and 7) introduce mobile
solutions to improve rural household access to value added services
(information services, financial services...).
In addition, businesses must
prove to have at least two-years of experience of working in sectors
related to proposed projects and to be capable of contributing at least
51 percent of the total investment value.
Businesses which will receive
financial assistance in this phase will have at least two years to
develop their business models. Up to December 2015, they must achieve
business results such as increased profit/revenue; improved living
conditions for low-income people (increased incomes, more employment
opportunities and access to reasonably-priced goods and services); and
reduce adverse impacts on the environment.
In the context of limited
business access to capital sources, VBCF’s financial assistance for
businesses to carry out their projects with the participation of
low-income people will bring investment opportunities for businesses to
develop dynamic business models, focusing on innovative products and
new, potential market segments.
|
VBCF has received
funds totaling GBP7 million from the Department for International
Development (DFID) through the Asian Development Bank (ADB) to help
private businesses in Vietnam develop projects which benefit low-income
people through creating jobs, increasing incomes and improving their
access to new, reasonably-priced products and services; these projects
must be developed in a sustainable manner from a business view point and
made widespread in the long term.
In
the first phase, VBCF received capital grant proposals from 150
businesses nationwide. Of these, 14 proposals have been selected and are
experiencing the final round of consideration before VBCF makes an
investment decision. The second phase will last to August 30, 2013. |
Source: VEN
