Millions benefit from business challenge fund

Hanoi (VNA) - About 5.7 million people have easier access to fundamental services and goods as an indirect effect of the Vietnam Business Challenge Fund (VBCF).

Javier Ayala, VBCF Executive Manager, said at a workshop reviewing the fund’s operation in Hanoi on November 11 that 4.1 million low-income earners have been able to buy Rang Dong Company’s LED lights which are produced thanks to the support of the fund.

Through investment in selected businesses, the fund contributed to raising income of more than 260,000 labourers and generating jobs for about 10,900 workers, of whom 75 percent are low-income earners and the majority of them are working in the farming sector, he said.

With an initial investment capital of over 20 million USD, the fund reportedly helped beneficiary businesses generate total revenue of more than 123 million USD.

Nguyen Doan Thang, General Director of Rang Dong Company, said investment from the fund helped the company modernize production lines of LED lights and training workers, thus raising productivity and cutting product prices.

The VBCF is a specialised fund initiated by the United Kingdom Department for International Development .

The fund is designed to support the private sector in Vietnam to develop innovative business models that deliver both commercial benefits for the company and social impact for the low income population using Inclusive Business models.

It provides technical assistance, mentoring and non-reimbursable funding of up to 49 percent of the total investment in selected projects through competitive open calls.-VNA