15:28 | 13/02/2020 Companies
On February 10th, 2020, Validus Vietnam, the Vietnam entity of Singapore’s largest SME financing platform, Validus Capital (Validus), collaborated with Nafoods Group JSC (Nafoods) to provide supply chain financing to Nafoods and the small and medium enterprises (SMEs) within its ecosystem.
Ms Tran Thi Thuy Ha, Chief Business Officer of Validus Vietnam, said “SMEs play a crucial role to the country’s economy. With access to financing, these SMEs are able to obtain capital to fund their business operations, expand and accelerate their business growth. Validus Vietnam is proud to be working alongside Nafoods Group and its SMEs, as agriculture continues to be a key sector that contributes significantly to the country’s economy.”
The partnership iterates Validus’ commitment to provide ways and bridge the financing gap that many SMEs face when it comes to business financing. Through its Corporate Partnership programme, Validus seeks to actively work with companies like Nafoods to provide supply chain financing to its SMEs such as farmers and distributors.
|Validus Vietnam helps Nafoods' SMEs grow their business|
Nafoods is a Vietnamese agri-food business and manufacturer that integrates agricultural processing from farm to distribution. It is also backed by International Finance Corporation (IFC), a member of the World Bank Group that works with the private sector in developing countries to create markets that open up opportunities for all.
Mr Nguyen Manh Hung, Chairman and CEO of Nafoods Group, shared that many farmers and SMEs along the supply chain sometimes do not get the funding on time to purchase their primary materials for crop growth. “Many agricultural SMEs in Vietnam face financial issues due to challenges in getting loans from banks such as insufficient collateral, strict corporate customer screening criteria and lack of financial literacy. Through working with Validus Vietnam, SMEs can obtain financing in time to improve their productivity to grow and expand their businesses.”
Mr Nguyen Chi Long - General Director of Long Hue Investment Joint Stock Company, an SME supplying to Nafoods, shared that he was able to boost his cash flow for operational expenses and expand his business operations after receiving funding from Validus Vietnam. “In the past, it was difficult for small business owners, like myself, to obtain sufficient funding from banks due to the lack of collaterals and business records. Thanks to Validus Vietnam, I can now receive financing on time to purchase farming equipment to harvest fruits and vegetables from my farm and sell them to Nafoods. I managed to have more cashflow to purchase new supplies and to expand my crop offerings.”
|Focusing on agri-business, Nafoods marks Validus Vietnam’s third corporate partnership in the country within a short span of less than three months since its launch last November. This comes after Validus Vietnam’s pilot partnership project with Medicare Vietnam, the largest pharmacy, health, beauty and personal care retail group; and Unicons, a member of Coteccons Group, one of the leading private construction enterprises in Vietnam.|