Mr. Doan Van Trang, the Chairman, founded the group in 1995. Prior to establishing Khai Vy, Mr. Trang worked in the local wood sector for nearly 17 years. Mr. Trang and his wife have majority ownership of the group with 90% of Khai Vy (Mr. Trang’s brother-in-law owns the remaining 10%) and 100% of Duyen Hai.

The total project cost is estimated at $11.5 million project, which involves predominantly the expansion of permanent working capital. A small component (12% of project cost) of the funding would be directed towards additional capital expenditure. IFC’s proposed investment is $6 million in the form of an A Loan.

6.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	6.0
Equity

* These investment figures are indicative

KVC has four operating sites across Vietnam. The main site, Khai Vy Factory, is based in Ho Chi Minh City and the remaining three - Duyen Hai 1 Wood Processing Factory, Duyen Hai 2 Wood Processing Factory and Duyen Hai 3 Wood Processing Factory are located in Binh Dinh Province. The Binh Dinh Province is a predominantly rural and less developed province in Central Vietnam with vast forest resources.

Development Impact: KVC is an internationally competitive and export-oriented company that specializes in outdoor and indoor medium end furniture. The group has achieved low operating costs in Vietnam despite a partial reliance on imported wood. KVC benefits from long-term contracts with well-known established clients such as Carrefour and Costco and low cost skilled labor. The Project will allow the company to continue to compete internationally through the extension of its debt maturity. Domestic subsidies and tariffs appear to play no role in the company’s profitability. IFC’s Role: - In addition to providing financing, IFC would provide guidance to KVC on improving HR practices and safety measure and if necessary, would seek Trust Funds to provide technical assistance. - Environmental Improvement and Guidance: IFC’s participation in the project will ensure that the Company meets IFC’s environmental and social standards, thereby building confidence and earning mileage with existing and potential clients. Additionally, with increasing demand for FSC certified wood in its markets, the group is open to IFC’s advice on managing raw material procurement risk.

This is a Category B project according to IFC’s Environmental and Social Review procedure. Environmental, social and health and safety issues which may be associated with this project and which will be reviewed during project appraisal include: environmental and occupational health and safety management, employment conditions, wood sourcing from sustainable managed forests, air and water emissions, solid waste management and disposal, hazardous materials management, fire protection and emergency response and workplace conditions including occupational health and safety.
Location of environmental documents in locally affected community
The environmental document Environmental Review Summary (ERS) will be available at the company’s headquarters in Ho Chi Minh City. (See the company’s address below).