On September 6, the International Finance Corporation (IFC) issued a press release summarizing IFC's activities in the Asia- Pacific region and Vietnam in the 2023 fiscal year ending June 30. Notably, IFC achieved a record investment level in the Asia-Pacific region last year and Vietnam was one of the five countries receiving the most long-term investment in the region.
In Vietnam, IFC’s total new investment commitments will reach nearly $1.9 billion in fiscal year 2023, including $520 million in long-term investment commitments. IFC’s investment and advisory projects focus on addressing core challenges facing Vietnam, from climate change and food security to trade barriers and housing credit shortages, helping businesses recover from the pandemic and overcome difficulties from the domestic and international environment.
The majority of the long-term investment capital is earmarked to increase lending to thousands of small and medium-sized enterprises, especially women-owned businesses, as well as low- and middle-income homebuyers, contributing to job creation and economic activity. IFC’s investments in BaF, a leading domestic livestock company, and in the GS25 retail chain, along with a commodity-backed loan to Thanh Thanh Cong - Bien Hoa Joint Stock Company (TTC AgriS), have helped promote agribusiness value chains and improve domestic food security.
IFC also provided more than $1.3 billion in short-term financing through trade and supply chain finance to businesses, especially apparel suppliers and agribusinesses, to help these companies continue to import and export goods and maintain about 100,000 jobs.
IFC invests 20 million USD in Son Kim Retail Joint Stock Company
DINH SON
Across the Asia and Pacific region, IFC committed a record $11 billion to 108 projects in the past fiscal year, up 10 percent from the previous year. The investment commitments included $4.7 billion in long-term financing from its own resources, $3.4 billion mobilized from other investors, and $2.9 billion in short-term financing to boost trade through trade and supply chain finance.
In support of Vietnam’s dual goals of becoming a high-income country by 2045 and achieving net zero emissions by 2050, climate and sustainability are becoming a focus of IFC’s projects in Vietnam. To date, IFC has committed more than $900 million in long-term financing to support climate-related projects in the country.
“As businesses recover from the pandemic and navigate the uncertainties caused by global crises, this is an opportune time for the private sector to embrace green transformation to enhance resilience and operational efficiency. This will not only bring economic benefits to companies but also help unlock the potential of the private sector to become an engine for the country’s transition to a low-carbon economic growth model,” said Thomas Jacobs, IFC Country Manager for Vietnam, Cambodia and Lao PDR.
Thanhnien.vn
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