Sweden’s development finance institution Swedfund said Monday it is investing $15 million in Excelsior Capital Vietnam Fund II to boost Vietnamese private sector development and growth, and thereby job creation.

The fund said in a statement that Excelsior II provides growth capital to mid-sized companies and will contribute to job creation in sectors like retail, manufacturing, healthcare, education and tech.

As a fund aligned with the 2X Challenge framework, Excelsior II is committed to enhancing opportunities for women and promote their participation in Vietnam’s formal economy.

According to the statement, Vietnam has made strong progress in reducing poverty and growing its economy.

However, the country still faces challenges, including the need for more funding to build infrastructure, support small businesses, and ensure increased access to financial and other services.

The Vietnamese banking system is still in an early stage of development with limited long-term financing capabilities, especially for small and medium-sized enterprises (SMEs).

It is also noted that the young population, around 70 percent of the population is between 15 and 64 years old, and expanding middle class is fueling an emerging entrepreneurial culture.

SMEs constitute 98 percent of registered companies in the country.

“With our investment in Excelsior II, we increase access to capital for mid-size and growing businesses,

“This strengthens the Vietnamese private sector and contributes to creation of quality jobs, improved industry standards, and to increased women participation in the workforce, and in leading positions,” said Sofia Gedeon, Investment Director Sustainable Enterprises, Swedfund.

Moreover, she said the fund contributes to increased participation in the formal economy, in a country where 65 percent of the workforce operate in the informal economy.

“In this way, Swedfund’s investment supports a more sustainable and resilient economy,” she added.

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