PUMA’s Vietnamese suppliers to get access to affordable financing
Vietnamese suppliers of the world’s leading sports brand PUMA will be able to access affordable financing from the International Finance Corporation if they comply with PUMA’s standards.
Products of PUMA brand (Photo: puma.com)Hanoi (VNA) – Vietnamese suppliers of the world’s leading sports brand PUMA will be able to access affordable financing from the International Finance Corporation (IFC) if they comply with PUMA’s environmental, health, safety and social standards.
According to the recently-inked agreement between the IFC – a member of the World Bank Group, and the European brand, the IFC will offer financial incentives for PUMA’s suppliers in emerging markets to improve those mentioned standards.
The programme will be launched in Bangladesh, Cambodia, China, Indonesia, Pakistan and Vietnam during the first phase.
The IFC will adopt a financing structure with tiered pricing of short-term working capital, offering lower costs for those suppliers that achieve a high score in PUMA’s supplier rating based on their adherence to the company’s social and environment standards.
The deal advances IFC’s effort to encourage small and medium enterprises (SMEs) to enhance environmental and social sustainability while achieving strong financial results, Sergio Pimenta, IFC Director of Manufacturing, Agribusiness and Services said.
The IFC provides financing to ready-made garment and footwear suppliers through its Global Trade Supplier Finance (GTSF) programme, which offers working capital to suppliers backed by receivables from international buyers.-VNA
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