200.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	200.0
Equity

* These investment figures are indicative

Economy wide effects: The Project is expected to support the development of the electronics value chain and contribute to the local economy through increased exports. Employment: The Project expects to create about 40,000 direct jobs along with skill training opportunities in the local markets, thus establishing a sizeable talent pool for future development of the local industry. Almost all employees of the Project are expected to be hired locally with female employment as a priority. All of them are expected to undergo professional training conducted by senior engineers and technicians of Goertek. Integration: The Project will help a major player in the global electronics value chain to expand into other emerging market, help to formalize the local electronics manufacturing sector up to export standards and enhance the local supply chain linkages. The know-how and expertise will be transferred at a scale needed to jumpstart other competitive manufacturing and supporting industries in the region. Its high E&S standards and production efficiency will also have market-wide demonstration effects and benefit other local players. Competitiveness: The Project will develop two full-fledged production sites in Vietnam for localized manufacturing of complicated smart devices and spur the competitiveness and growing innovation in the local economy. It will also facilitate the development of supporting industries by procuring more inputs from local suppliers in Vietnam and build up their capacity to support manufacturing with higher value-add.

IFC's additionality will mainly come from, i) mobilization: to provide and mobilize long-term USD loan financing to match the cash generation profile of the Project, which is critical for the success of the Project; ii) knowledge, innovation and capacity building: to enhance E&S standard setting for the Vietnam operations; to bring expertise on gender-smart policies and practices; and to support its engagement with local stakeholders and potential business partners.

This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability (2012). Key E&S issues associated with this Project include: (i) the adequacy of the Company’s E&S management system and organization; (ii) ensuring labor and working conditions in Company facilities and operations are aligned with national requirements and IFC’s requirements taking into account the size of the workforce; (iii) occupational health and safety (OHS) during the construction and operational phases of the Project; (iv) waste management including hazardous wastes; (v) hazardous materials; (vi) emergency preparedness and response including how life and fire safety risks are managed and including that related to COVID-19; (vii) potential land acquisition risks in relation to the Nghe An footprint area; and (viii) stakeholder engagement and grievance redress mechanisms.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.