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
“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.