Vietnam Challenge Fund (VCF) is a US$ 3 million source of funding from the Asian Development Bank and the UK’s Department for International Development. It is designed to challenge the private sector to propose innovative new business models that engage and benefit the poor, on a replicable and sustainable basis.
Grantees will match or exceed the value of VCF grants with investment capital from their own resources. The grants made will be performance based, and payments will be made upon achieving contractually agreed performance indicators or milestones.
VCF will initially focus on agro-processing linkages with the poor, but will expand to other areas, such as infrastructure services. VCF will support innovative projects implemented by private sector organisations that aim to improve poor people’s participation in – and their returns from – agricultural value chains. It will award grants to encourage investments at different points along agricultural value chains that matter to the poor, from the production stage through to increasing penetration of products in domestic and international food retail systems.
These projects will be expected to deliver development benefits to the poor as producers, employees, traders, processors, and retailers. Successful projects could provide business models with a much wider applicability or scalability across Vietnam.
The VCF is expected to award grants that:
· Encourage investments at different points along agro-processing supply chains that matter to the poor in Vietnam.
· Test new and innovative supply chain initiatives that deliver development benefits to the poor, participating as farmers, traders, processors or consumers.
· Encourage the development of busin