MFL Vinh Phat Company Ltd.

completed

Summary Of Project Information (SPI)Project NameVietnam: MFL Vinh Phat     RegionAsiaSectorProject No009092Projected Board DateJune 4, 1998Company NameVinh Phat Company Limited (Vinh Phat)Technical Partner and/or Major Shareholders The sponsors are Mr. Phan Khac Hoa, aged 43, and his family who own and manage the company. Mr. Hoa is Vinh Phat’s executive director and his wife is its financial controller. Mr. Hoa holds the major responsibility for Vinh Phat’s operations and business development, while his wife, an accountant, is in charge of accounting and book keeping. As a textile engineer from Hanoi Polytechnics University with 17 years of experience in the production and export of garments, Mr. Hoa has considerable experience in the industry. Project Cost Including proposed IFC investment Total Project cost is about US$645,000 of which a loan of US$300,000 is proposed to be provided by IFC through the Mekong Financing Line (MFL). Location of project and Description of site The manufacturing facility is located approximately 15 kilometers from Hanoi. The land includes buildings for workshops, warehouses, a canteen, an office and an auxilliary area, with easy access to local and regional highways. Description of Company and Purpose of Project Vinh Phat is a successful private Vietnamese company which manufactures garments for export. The Project is to help Vinh Phat expand its cut-make trim (CMT) garment production from 170,000 to 300,000 units p.a. over three years by expanding production space, improving facilities and increasing the number of sewing machines. One hundred and five additional machines will be installed in two building additions to be constructed at the company’s existing location. These would include both basic and specialized sewing machines that will address the company’s production bottlenecks. By expanding its capacity and improving productivity at this time, Vinh Phat will be able to meet existing and projected future demand. The project will help the company to increase its exports and employment.      Environmental Category and Issues This is a category B project according to IFC’s environmental review procedure. Environmental, occupational health and safety issues associated with this project include: indoor air quality; wastewater treatment and discharge; workplace health and safety conditions; and fire protection and safety systems. As the expansion involves the addition of a second floor on the existing facility, there is an increased need to consider fire safety procedures and exit routes. The project sponsor has installed fire extinguishers in existing rooms and will install them in the additional rooms once construction is complete. Marked fire exit routes from the second floor sewing units are included in the construction plans. The facility is regularly inspected for fire safety by local officials and staff receive training in fire saftey procedures.      The is from the Infoshop.Date SPI sent to Infoshop Revised to reflect correct Project numberMay 4, 1998May 7, 1998“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 974-4384Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).