MEF IV: an investment to support SMEs in Vietnam

MEF IV is Mekong Capital’s fifth investment vehicle, which demonstrates the team’s experience and knowledge of current needs and opportunities in Vietnam. As it has often worked with other development finance institutions, such as the International Finance Corporation (IFC), Mekong Capital also benefits from extensive experience in promoting high environmental, social and governance standards in the investee companies.

Proparco has signed a USD 15m investment in the Mekong Enterprise Fund IV to support growth in Vietnam’s private sector. 

This USD 246m fund will invest in SMEs and midcap companies that meet strong local demand in sectors such as health, education, access to consumer goods and services, financial inclusion and logistics.    

Based on the performance of the III fund, the expected impacts of MEF IV are:

• Support for some 15,000 jobs over the next 5 years in the 12 companies invested in by the fund, including 50% for women; 
• The development of access to essential goods and services in the health, education and financial inclusion sectors, with 200,000 people expected to benefit from a microfinance service over the next 5 years; 

The project should thereby contribute to the Sustainable Development Goals (SDGs) n° 8 (“Decent work and economic growth”) and n° 10 (“Reduced inequalities”).