Sadec Malaysian Consortium was incorporated in 1992 principally for the promotion of bilateral trade and investment between Vietnam and Malaysia. For promotion purposes, two funds were created, namely the Investment Promotion Fund and the Trade Promotion Fund. The Company was formed as an expandable consortium company, akin to the concept of an open-ended investment fund. The formation structure enables the company to mobilise additional shareholders’ equity over time by way of entry of new consortium members depending on the promotion activities of the company.
The early activity of the Company was in trade promotion. To enable rapid development of the trade activity, the company identified and worked with the Vietnam Export Import Bank ( Exim Bank ) to develop correspondent relationship with Malaysian banks. With the opening of credit facilitation arrangement, and with Exim Bank acting as a forum for exporters and importers, bilateral trade grew substantially between the two countries.
The Company commenced Investment Promotion activities in early 1993, with a primary trust for the development of infrastructure projects. Amongst the promoted projects include the Saigon-VungTau Highway, the MyTho Bridge project, the Binh An Water Supply Project, the development of power cable manufacturing facilities in Hanoi, the DongThapMoui Highway, the development of tea/coffee plantations in Central Vietnam and the development of integrated rice milling facilities in South Vietnam.
The Company itself took direct equity in the Binh An Water Supply project which was implemented on a Build-Operate-Transfer basis. This project also represents the first privatised project in Vietnam.