Ho Chi Minh City, June 30, 2005
—The International Finance Corporation, the private sector arm of the World Bank Group, has agreed to provide a $6 million loan to Khai Vy Corporation to fund working capital needs and upgrade its manufacturing facilities in Vietnam. Khai Vy is one of the leading manufacturers and exporters of indoor and outdoor furniture in Vietnam. IFC is also exploring opportunities to provide technical assistance to help Khai Vy achieve wood certification for its entire wood supply chain. Certified raw materials is aimed at increasing the confidence of Khai Vy’s international customers and attracting new ones that are seeking furniture produced from sustainably-managed wood sources.
“Vietnam is fast emerging as a important manufacturing and exporting base for wood furniture in Asia. IFC wants to play a role in enhancing the productivity of companies like Khai Vy operating in a competitive sector for Vietnam” said Javed Hamid, IFC director for East Asia and the Pacific. “Our partnership with Khai Vy will help it adopt sustainable business practices, including better financial management and wood procurement practices necessary to remain a competitive among international consumers,” said Dimitris Tsitsiragos, IFC director for Global Manufacturing and Services.
”This is a great opportunity for Khai Vy enter into a long term relationship with IFC. This partnership will help Khai Vy reach higher standards in all areas of operations, not just sales and market expansion” said Mr. Trang Doan, Chairman of Khai Vy Group. Khai Vy is a family owned group. It supplies many well-known international retailers, including Carrefour and Metro in Europe, and Costco in North America.
The mission of IFC
(www.ifc.org
) is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications.
