Investment, Trade & Transport Facilitation ACMECS Bangkok March 13, 2007

I. Who is IFC and what do we do II. IFC in Vietnam, Cambodia, Laos III. How to work with the IFC

OVERVIEW OF IFC One of the largest and most knowledgeable investors in the Emerging Markets Global private sector investor The world’s largest loan and equity investor in private sector companies & projects in the Emerging Markets Established track record US$56 Bn invested in over 3,500 companies across all sectors in 140 Emerging Market countries US$25 Bn syndicated to commercial banks and other lending institutions US$27 Bn of current porftfolio (includes $5 Bn in syndicated loans) AAA credit rating; no loss years since inception in 1956 Global reach and expertise Over 2,900 staff; over 1,400 in the field Relationship with market leaders in key industries In-house industry, government, financial, environmental expertise Part of the World Bank Group Premier global development institution with mandate to reduce poverty 178 countries as shareholders; US, EU, Japan are the largest

IFC Products and Services To assist private enterprise in developing countries, IFC: Provide loans and equity for viable projects Mobilizes capital from other sources Provide technical assistance & advisory services IFC Corporate Information Slide No. 4 The goal of all members of the World Bank Group is to alleviate poverty and raise living standards by promoting sustainable economic development and by channeling resources from developed nations to developing countries. In addition, each World Bank institution has a distinct developmental role: IBRD, the main lending arm of the World Bank Group, lends to governments of middle-income developing countries. IDA lends on concessional or “soft” terms to governments of the poorest developing countries. MIGA provides guarantees to foreign investors against non- commercial risk.

IFC Defining Characteristics Participates only in private sector ventures Shares same risks as other investors Invests in equity Has market pricing policies Does not accept government guarantees Is profit oriented IFC Corporate Information Slide No. 5 As a rule, the enterprises we finance must be majority private sector owned and controlled. Like other private sector investors and commercial lenders, we seek profitable returns, price our finance and services in line with the market, and share full project risks with our partners. Even though we do not accept any government guarantees for our financing, our work often requires close cooperation with government agencies in developing countries.

IFC’s Beneficial Role IFC’s presence reassures foreign investors, local partners, governments Reputation and standing to help negotiations Measure of political risk cover Catalyst for other investors and lenders IFC Corporate Information Slide No. 6 As a rule, the enterprises we finance must be majority private sector owned and controlled. Like other private sector investors and commercial lenders, we seek profitable returns, price our finance and services in line with the market, and share full project risks with our partners. Even though we do not accept any government guarantees for our financing, our work often requires close cooperation with government agencies in developing countries.

IFC in Vietnam IFC has been active in Vietnam since 1992, commencing with a technical assistance, and its first investment in 1994. Todate approved investments $500m in > 25 companies Expect to ramp up in future: $100-150m per year Focus on financial sector and infrastructure Active advisory program, mainly through Mekong Private Sector Development Facility (MPDF) IFC Corporate Information Slide No. 7 IFC provides no standard application form for financing. An entrepreneur can approach us directly. After initial contacts and a preliminary review, we request a feasibility study or business plan to determine whether to appraise the project. An appraisal team evaluates the project’s technical, financial, economic, and environmental aspects. The process entails visits to the proposed site and discussions with sponsors. The team then submits its recommendations to senior management. If financing is approved, IFC’s legal department drafts the core investment documents. Outstanding issues are negotiated with the sponsor, and the project is submitted to IFC’s Board of Directors for approval. Following Board approval, legal documents are signed, a syndication (if applicable) is negotiated and closed, and disbursements are made. We supervise investments closely, send our field missions to the project, and require quarterly progress reports and annual financial statements audited by independent public accountants. Once projects have reached early operating maturity, we evaluate the emerging outcomes, assign performance ratings for internal accountability reporting, and identify lessons for improving future operations.

IFC in Cambodia and Laos Given the nascent private sector, focus is on capacity building, business enabling environment Effort spearheaded by MPDF Selective investments in financial sector, infrastructure, tourism, manufacturing Desire to do more, especially in agribusiness IFC Corporate Information Slide No. 8 IFC provides no standard application form for financing. An entrepreneur can approach us directly. After initial contacts and a preliminary review, we request a feasibility study or business plan to determine whether to appraise the project. An appraisal team evaluates the project’s technical, financial, economic, and environmental aspects. The process entails visits to the proposed site and discussions with sponsors. The team then submits its recommendations to senior management. If financing is approved, IFC’s legal department drafts the core investment documents. Outstanding issues are negotiated with the sponsor, and the project is submitted to IFC’s Board of Directors for approval. Following Board approval, legal documents are signed, a syndication (if applicable) is negotiated and closed, and disbursements are made. We supervise investments closely, send our field missions to the project, and require quarterly progress reports and annual financial statements audited by independent public accountants. Once projects have reached early operating maturity, we evaluate the emerging outcomes, assign performance ratings for internal accountability reporting, and identify lessons for improving future operations.

Supervision/Evaluation How to work with the IFC As Seen by Client Internal to IFC Initial Discussions Initial Review & Authorization to Appraise Mandate Letter Appraisal Financing Negotiations Management Approval Info. Memo and Syndication Legal Documentation Disbursement Board Approval Supervision/Evaluation

For inquiries, please contact: Mr. SIN FOONG WONG, Country Manager, IFC Vietnam, Cambodia, Laos 3rd Floor, 63 Ly Thai To Hanoi, Vietnam Tel: (04) 934 2282 Fax: (04) 934 2289 Cell: 090 346 0477 Email: swong@ifc.org Web: www.ifc.org

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