Belgians step into the gap

Bio is the Belgian Kingdom government investment fund having EUR465 million under management. Bio aims to support small-and -medium size enterprises (SMEs) in developing countries. Its loan portions range from EUR300,000 to EUR2-3 million in 5-10 year duration,  according to Bio Vietnam representative Nathalie Brisbois.

“In Vietnam, Bio has lent out to scores of businesses. It has injected $15 million in Sacombank or $18 million in Mekong Enterprise Fund to expand lending to SMEs,” said Nathalie Brisbois.

Director Nguyen Cong Dang at Grand Place - a Bio loan recipient, said in 2006 the firm wanted to build the second factory on chocolate production with an annual capacity of 3,000 tonnes to meet burgeoning market demands. However, it could not source sufficient investment from local banks or investment funds.

“In this critical period, we came to Bio and our capital needs were satisfactorily met. With Bio capital support and advice, Grand Place could not only foster production and enlarge export market, but also turn out chocolate products entirely made sourcing local materials,” Dang said.

Bio Vietnam has benefited from Belgian embassy support. “To bolster economic, trade and investment relationships between the two countries the Belgian embassy in Vietnam has partnered with Bio to assist Vietnamese firms with promoting export to Belgium and the EU market at large,” said Belgian ambassador to Vietnam Hubert Cooreman.

Hundreds of Vietnamese firms active in infrastructure development, renewable energy, information technology, telecommunications, and agriculture areas came to Bio Vietnam to source loans, according to Belgian Ministry of Foreign Affairs’ head of Asia section Bertrand de Crombrugghe.

In the context Vietnamese firms are critically short of investment capital, Bio’s support is the kiss of life to a number of SMEs, said deputy minister of Planning and Investment Cao Viet Sinh.

“The Vietnam-Belgium Joint Commission on Economic Cooperation will lend a hand to help enhance cooperation between Bio and Vietnamese firms, from there cementing economic, trade and investment ties between the two countries,” Sinh said.

According to Vietnam Chamber of Commerce and Industry chairman Vu Tien Loc, more than 30 per cent of local firms could not access loan loans, and most of them are SMEs.