15:03 | 21/06/2016 Economy
VinaCapital Vietnam Opportunity Fund (VOF) and Deutsche investitions-und Entwicklungsgesellschaft mbH (DEG), a member fund of the KfW Group, will invest US$30 million in the Binh Duong-based An Cuong Wood Working Joint Stock Company.
Representatives of VinaCapital, DEG and An Cuong Company at the press brief on June 15
The strategic investment and development partnership between the three sides was announced at a press briefing in Ho Chi Minh City on June 15.
The money – 70% from VOF and 30% from DEG – will be disbursed in two phase within one year. Disbursement of US$18 million has been completed for the first phase, while the second phase will be disbursed based on each of An Cuong’s business plans.
According to the co-operation agreement, VOF and DEG will support An Cuong in administration as well as application of Enterprise Resource Planning (ERP) worth millions of US dollars in late 2016. In return, An Cuong is committed to increasing revenues and meeting environmental standards of the region and Europe, specifically in the German market.
VOF and DEG hailed An Cuong as a private enterprise with huge potential and strength in the timber industry.
VinaCapital CEO Don Lam said he believed that the strategic co-operation would drive An Cuong towards expanding its business production and further building on its leading position in Vietnam’s interior timber market.
Investment in An Cuong increased VOF’s total capital in Vietnam to nearly US$2 billion, Don Lam noted.
Dr. Herbert Baumgartner, director of DEG’s representative office in Bangkok, hailed An Cuong as an innovative and dynamic company, speaking highly of its strong commitments to E&S issues.
DEG is managing a EUR2.6 billion asset portfolio in Asia. The fund plans to commit as much as US$100 million for Vietnamese firms over the next few years, prioritising private enterprises who have potential for sustainable development and pay attention to the environment, according to Herbert Baumgartner.
An Cuong is currently operating 10 showrooms across Vietnam and has representative offices in Malaysia, Japan, US, Canada and Australia. The firm’s turnover in 2015 reached US$70 million riding on 35% annual growth and is expected to rise to US$85 million in 2016./.