IFC makes US$10.2m investment in Vietnamese seed company

News | 9 May 2017

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IFC has made a US$10.2m equity investment in the Vietnamese seed company PAN Farm JSC.

The VND230bn equivalent investment will be channelled into PAN Farm’s subsidiary business, National Seed Corporation JSC (Vinaseed), which will use some of the funds to expand its existing seed business, and move towards developing export-quality flower, fruit and vegetables.

IFC has placed an emphasis on supporting small farmers and the global agribusiness supply chain over the last three years – in the 12-month period to June 2016, its investment in the global agri sector totalled US$3.4bn.

“This successful capital raising of PAN Farm represents the potential of Vietnam agriculture in general and PAN Farm in particular to international investors, and helps strengthen the agricultural foundation of the PAN Group,” said Nguyen Thi Tra My, PAN Farm chairwoman.

Part of the equity investment will also be used by PAN-SALADBOWL JSC, a subsidiary of PAN Farm, to support the group’s new horticulture crops.

“We appreciate the partnership between IFC and the PAN Group over the years. IFC’s investment into PAN Farm with their international experience in the agriculture sector will greatly support PAN Farm to expand its seed and horticulture business, and apply sustainable farming practices and standards as well,” Nguyen added.

IFC will also provide advisory services to help PAN Farm and its subsidiaries adopt international best practices in food safety, and environmental and social performance standards.

“Our priority is to support Vietnamese agriculture sector by helping build productive, efficient and climate-resilient crops,” said Kyle Kelhofer, IFC country manager for Vietnam, Cambodia and Lao PDR.

“With IFC’s support, PAN Farm’s food safety and environmental and social standards will match international best practices, and boost local industry standards.”  

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