The International Finance Corporation (IFC) pledges to double its investment and advisory services in Vietnam over the next three years in a bid to help the developing country transit to a more market-based economy, Sin Foong Wong, IFC country manager for the region, has told a local media.
“IFC has targeted at Vietnam’s private sector investment and advisory services for nearly 15 years and IFC sees potential for stronger economic growth and prosperity, but also great challenges ahead,” Sin Foong Wong talked with the Vietnam News on August 15 about IFC's commitments to Vietnam on the occasion of its executive vice president Lars Thunell's current visit.
IFC offers investments and technical assistance priorities to such sectors as labor-intensive manufacturing, agribusiness, tourism, and information and communication technologies which see growing domestic demand and are comparative advantages of the country, he said.
Since 1992, IFC has financed nearly $500 million to more than 25 private companies in a wide range of sectors of finance, health care, education, information technology, manufacturing, and agribusiness. To support private companies which are too small for direct financing, IFC has injected money in banks and investment funds that in turn finance smaller firms.
Regarding the financial sector, IFC has sought to help Vietnam's government improve capacity of state-run commercial banks and insurance companies. Presently, IFC is a shareholder in Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank) and Asia Commercial Joint Stock Bank (ACB), Vietnam’s two largest private banks.
Additionally, IFC is also one of the first investors in an offshore fund, Vietnam Enterprise Investments Limited which is now the largest Vietnam fund and the fastest-growing in net asset value.
IFC's multi-donor-funded technical assistance initiative, Mekong Private Sector Development Facility (MPDF), has been working in Vietnam, Cambodia, and Laos for nine years to reduce poverty through sustainable private sector development.
Given the business environment, Wong said IFC facilitates public-private dialogue through the Vietnam Business Forum, and MPDF to develop private sector's advocacy capacity.
IFC, he affirmed, will maintain its commitments to Vietnam in an effort to help the country strengthen competitiveness capacity, particularly of its private sector, and thereby assisting the country's continued and successfully integration into the World Trade Organization (WTO).
Labourer, VNS
Vietnamese
