Brussels, 05/10/2009 (Agence Europe) - The European Investment Bank (EIB) is to lend €47 million to Metro Cash and Carry Vietnam Limited (“Metro Vietnam”), a subsidiary of German company Metro AG, to help finance the construction of five wholesale stores. The project forms part of Metro AG's expansion programme in Vietnam. The stores will be located in Bien Hoa, Binh Duong, Nha Trang, Long Xuyen and Qui Nhon. This is the second EIB loan to Metro Vietnam, as the Bank financed in 2005 part of the current network of the company.
The operation is in line with the EU strategy in Asia, as the project will help modernise the distribution sector in Vietnam, increasing competition and promoting a more efficient use of resources, therefore increasing the efficiency in the Vietnamese economy as a whole, the EIB says in a press release.
The loan will support the EU presence in Vietnam, by contributing both to investment by a European company and to the transfer of technology and know-how. Metro Cash & Carry will provide technical assistance (including training) to improve hygiene and food safety standards, and the quality of local fresh food production, packaging, transport and storage, thus “encouraging local producers to produce and process food according to best practice, which are particularly important in tropical environments,” the EIB points out.
The EIB is extending this loan in the context of the current lending mandate for Asia and Latin America (ALA IV), covering the period 2007-2013. Under this mandate the EIB is authorised to lend up to €3.8 billion to finance operations that support the EU presence in those regions through Foreign Direct Investment, transfer of technology and know-how, or contribute to environmental sustainability. (O.L/transl.rt)