The European Investment Bank is lending EUR 38 million to Metro Cash and Carry Vietnam Limited (MCC VN) to help finance the construction of wholesale stores in five main Vietnamese cities.
The project contributes to creating modern distribution outlets in Vietnam, providing food and non-food items for small businesses and corporate customers. The project will provide technical assistance to improve the quality of local fresh food production, transport, distribution and storage. It will also provide training in quality assurance, hygiene and food safety standards. Procurement of local products will encourage local producers to adopt best practices.
Metro AG, the German mother-company, is one of the most successful European companies in this sector. It will support its Vietnamese subsidiary MCC VN by transferring technology and know-how. The investment will also induce transfer of technology in other fields, notably in agriculture, to improve the supply (cold) chain of products to be sold in five main cities.
Non-food products and sensitive food products (e.g. poultry) will be supplied under certified production conditions, providing a health guarantee to the consumers and thereby underpinning the country's orientation to exploit its tourism potential. The Horeca (hotels, restaurants, catering) customers require the highest level of product quality to serve the international clientele.
With this project MCC VN will increase its coverage of the national market, following an in-depth testing of the Vietnamese market. The five cities targeted by the investment are home to some 20% of the countries total population and some 30-40% of the national purchasing power.