Vietnam: supporting Scavi, a responsible player in the garment industry

Scavi is a world-leading supplier of lingerie and swimwear, having collaborated with more than 60 brands all over the world since it was set up 33 years ago. Scavi today employs over 15,000 people on its 7 production sites in Vietnam, Laos and France. The company is well-known for its Corporate Social Responsibility, social actions and visionary strategy for a sustainable apparel industry.

The USD 10m credit line allocated to Scavi by Proparco aims to assist the Group with:

• The automation and digitalization of its operations and production tools to ensure the Group’s transition towards Manufacturing 4.0; 
• The increase in its working capital requirements and various investment expenditures (new warehouse and offices) related to the growth in its activity

The project will support the growth in the garment industry in Vietnam, the country’s second largest exporter, which accounts for 16% of the country’s GDP and employs 2.5 million people. 

This operation should support over 20,000 direct and indirect jobs in the coming years. It is also planned to set up a partnership throughout the value chain between suppliers and end customers (cost transparency and fair remuneration for each production stage), as well as a pilot project in France to relocate part of the production. This will allow French brands to reduce their carbon impact and have a Made in France label.

Due to the quality of Scavi’s working conditions and its various commitments towards its female employees, who account for 80% of its workforce, the financing qualifies for the 2X Challenge, a global initiative to strengthen the economic role of women in developing countries which PROPARCO has been contributing to since its launch in 2018.