We have visited or contacted nearly every local bank in Vietnam and in Singapore. None of the banks we visited are willing to finance “green field” projects like ours without full collateral. As a general rule, we need to have collateral worth at least double the amount that we want to receive from a bank. That means that if we need USD1.65m we need to have assets worth at least USD3.3m to obtain financing.
We have a JV offer from a Vietnamese government backed corporation and also JV offers from Vietnamese private investors. However, we feel these options are quite risky for us as there is a possibility to lose the technology (know-how) and control over the company (please refer to Vietnamese JV laws). We also have offers from European, Russian and American investors which require us to give away the majority of equity in our project. We want to keep maximum control over the company in order not to lose motivation and to prevent further equity dilution in the future. In other words, we want the company to remain ours and to ensure that our team is fully aligned. We have a great vision for the company, really believe in the strength of our team, and have a 100% interest to develop our project, increase capacity and continue R&D.