LONDON - An Cuong Wood Working, one of Vietnam's largest wood furniture and decorative panel manufacturing firms, says it will see $30 million in investment through a German finance group via a fund traded on the London Stock Exchange, the VinaCapital Vietnam Opportunity Fund.
The An Cuong Wood - Working Joint Stock Company, its formal name, opened in 1994. It is both a manufacturer and distributor for various well-known brands from U.S., Germany, Italy, Spain and Australia in wood and plastic based panels used in commercial and residential interiors.
Employing more than 1,300, An Cuong Wood Working has 10 showrooms across Viet Name. Its factory in Binh Duong province with an area of more than 300,000 square feet, features the latest technology from Italy and Germany. The company also has offices around the world, including Cambodia, Malaysia, Japan, Canada, U.S. and Australia.
An Cuong says all of its products are certified by Green Label Singapore. The company has also received International Certificates for its product quality including CQ (Certificate of Quality from Malaysia), SA 8000:2008, ISO 9001-2008, and ISO 14001:2004. a London Stock Exchange Main Market traded investment fund, and DEG - Deutsche Investitions- und Entwicklungsgesellschaft mbH, a member of the KfW Group.
Dr. Herbert Baumgartner, director of DEG's representative office in Bangkok, says, "DEG is excited about its cooperation with such an innovative and dynamic company like An Cuong that shows strong commitment to E&S issues. DEG looks forward to working with VinaCapital in supporting the company as it expands its operations thus creating employment opportunities in Vietnam."
An Cuong's wood-based materials -melamine-faced chipboard (MFC) and melamine on MDF; laminates; high gloss acrylic; veneer and auxiliary products - are used in modern interior design and decoration including indoor furniture, doors, flooring and kitchen cabinetry doors. An Cuong Wood Working currently supplies its products to Vietnam's largest construction developers and says it has been working with thousands of interior design firms, contractors and local carpenters across the country as well.
The company says it has consistently grown 30 -35 percent over the past several years, and An Cuong annual turnover is US$70 million in 2015, with dominant market shares of over 50 percent in branded MFC panel and 70 percent in branded laminate panel.
CEO Le Duc Nghia, says the sought the investment not just for the money but for guidance
"One of the reasons we have entered into this transaction is because these two organizations bring not only capital, but expertise and a track record of working with their investees," he says. "They share our commitment to building this business to the next level.
"We are also gratified that our efforts to operate the company to the highest standards, be it in our environmental, sourcing or labor practices, have been recognized by DEG, which attributes great importance to these issues when considering an investment."
According to Don Lam, VinaCapital CEO, "An Cuong has been on our radar for some time. It's well managed, ambitious and innovative, and always looking at how it can expand in a sustainable way. We are pleased to be partnering with DEG to help An Cuong further build on its leading position in the industry and enter a new phase of growth."
DEG, a subsidiary of KfW, finances investments of private companies in developing and transition countries. As one of Europe's largest development finance institutions, it promotes private business structures to contribute to sustainable economic growth and improved living conditions. DEG's current portfolio in Asia amounts to EUR 2.6 billion.
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