VinaCafé Bien Hoa & the Turning-Point Investment

VinaCafé Bien Hoa was formerly a coffee processing factory of a French gentleman, which was taken over by the State after the victory day. It was incompletely equipped and had a capacity of less than 100 tonnes of products per year.
Under the centrally planned economy, the factory produced and exported all of its ready coffee to Eastern European countries under the plan set by the former Ministry of Foreign Trade (currently the Ministry of Trade). "When suddenly the Ministry stopped orders, VinaCafe Bien Hoa became unemployed," Mr. Bui Xuan Thoa, Director of VinaCafé Bien Hoa Joint-stock Company reported. The company had no choice but to shift to different unmatched jobs to create work for its workers.

VinaCafe Bien Hoa at an international trade fair

In 2000, VinaCafé Bien Hoa decided to seek for bank loans to invest in a new factory and a brand-new production line. The investment was estimated at almost VND100 billion, equal to US$8.6 million at the time. The government of Denmark, via the Mixed Credit program of Danish International Development Agency (Danida), was among foreign partners who dared to provide a loan worth over US$2.7 million to the project.

"Right decision and on-time assistance from the lenders, especially Danida, set an important milestone for VinaCafé Bien Hoa's today development," said Mr. Thoa. The new production line has increased production capacity by five folds and significantly improved product quality and the company's competitiveness in the domestic and the world market. VinaCafé Bien Hoa is leading the domestic market regarding ready-made coffee. Twenty percent of the company's output, in addition, are present around the world.

VinaCafe Bien Hoa is currently seeking for financial sources for its new project worth US$15-17 million to produce ready-made coffee. "If the project is implemented, there will be a Vinacafe brand presenting in many corners of the world in the near future," Mr. Thoa expressed his confidence.

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