Validus cooperates with Nafoods to provide business financing
Validus cooperates with Nafoods to provide business financing
Validus Vietnam, a subsidiary of Singapore’s small and medium enterprises (SMEs) financing platform, on February 11 announced its partnership with Nafoods Group JSC to offer supply chain financing to Nafoods and its distributors.
The partnership has demonstrated Validus’ commitment to addressing the financing gap faced by many SMEs.
According to Validus, agriculture is a crucial sector in Vietnam, contributing 10% of the country’s gross domestic product and creating 40% of its total employment. Exports of agricultural products, such as fruits and vegetables, soared by 29% in 2018, exceeding those of other conventional items such as crude oil and rice.
The number of local SMEs accounts for 97% of all companies operating in the country, but their demand for loans of up to US$21 billion remains unmet.
Nguyen Manh Hung, chairman and CEO of Nafoods, stated that many farmers and SMEs in Nafoods’ supply chain sometimes did not receive funding on time to purchase primary materials for crop growth.
Nguyen Chi Long, general director of Long Hue Investment JSC, a supplier of Nafoods, noted that he has been able to expand the business after taking out loans from Validus Vietnam.
It was not easy for SMEs like Long Hue company to get loans from banks due to obstacles such as insufficient collateral. But now, with the financing solution offered by Validus, his firm can obtain financing in time to harvest farm produce and distribute to Nafoods, Long said.
Nafoods, which is backed by the International Finance Corporation, is an agrifood business and manufacturer in Vietnam.
Meanwhile, Validus Vietnam established partnerships with pharmacy group Medicare Vietnam and Unicons, a subsidiary of leading construction enterprise Coteccons Group, before teaming up with Nafoods.
