VBCF Calls for Second Business Proposals

Vietnam Business Challenge Fund (VBCF), financed by the British Government via the Department for International Development (DFID) and administered by SNV Netherlands Development Organisation, officially called for second business proposals in Hanoi on May 15, 2013. The total budget of the fund is £7 million, or US$10 million.

Speaking at the ceremony, VBCF Managing Director Javier Ayala said VBCF is especially designed to support the private sector in Vietnam to develop innovative business models which bring benefits to businesses and positively impact society by creating jobs for local people and improving access to products and services at reasonable prices.

 

Regarding candidates, he stressed that all domestic and foreign businesses in Vietnam are eligible to submit proposals to VBCF to seek funding. The VCBF contribution can reach up to US$800,000 for a particularly promising project. However, the candidate must have up to 51 percent of counterpart capital to get the finance from VCBF to proceed with their business projects.

 

Mr Vu Tuan Anh, VBCF Manager, said the fund will focus on supporting three fields defined to be vital for the sustainable development and growth of pro-poor inclusive business, namely agriculture, low-carbon growth, and small-scale infrastructure and basic services. Notably, the fund will not disburse at any cost if it does not find quality projects, he stressed.

 

The total maximum pledged capital for the two phases is US$8 million. In the first phase, 150 companies have submitted proposals and 14 proposals are being considered for the final round. The main reasons for first-round disqualification of candidate companies are being uncreative, infeasible, in excess of candidates’ capacity, lack of preparation, and unoriginal. The fund expects to have 20 shortlisted proposals.

 

Information-sharing conferences will be held throughout the country to provide more information about VBCF and direct exchanges with enterprises will be organised in Ho Chi Minh City (May 8), Hue (May 10), Hanoi (May 15), Nam Dinh (May 17), Tuyen Quang (May 22), Ben Tre and other localities (in July and August).