MICROFINANCE services in the growing financial market in Myanmar will be offered by Vietnam’s Dragon Capital Group, an integrated investment firm, which set up a joint venture with Myanmar’s Ruby Hill Microfinance Co, launching the service with US$5 million in capital.
Depending on market demand, the joint venture is expected to increase capital up to $100 million within the next five years.
The two partners inked a joint venture agreement on 5 April to offer loan products and services to the growing workforce in Myanmar.
Under the JV agreement, Ruby Hill of Loi Hein Group, Myanmar’s leading consumer discretionary group, will own a 51 per cent stake, while the Vietnamese firm will hold the remaining 49 per cent.
Dragon Capital, the earliest investment fund in Viet Nam, manages $1.5 billion assets in public and private equities, fixed income and property.
According to the estimation of economic experts, more than half of the country’s population has no access to financial services.
Dr Sai Sam Htun, chair of Loi Hein Group, said that the total unmet financing demand in Myanmar, the last frontier in Asia, is estimated at around $1 billion.