IFC invests in PAN Farm to develop Viet Nam agriculture

IFC, a member of the World Bank Group, and some domestic and international partners, including: Daiwa-SSIAM Viet Nam Growth Investment Fund (co-managed by Daiwa Corporate Investment, a member of Daiwa Securities Group and Saigon Securities Incorporation SSI), Saigon Securities Incorporation (SSI) invested 400 billion VND in Pan Farm to expand its agricultural production and trade activities.

At the signing ceremony, Mr. Kyle Kelhofer, IFC’s Country Manager of Viet Nam, Cambodia and Laos said that IFC invested 230 billion VND (equivalent to approximately 10.2 million USD) in PAN Farm to support its current seed production and trade, as well as to expand into new areas such as export-quality flower, vegetables and fruit production. Along with the financial investment, IFC also provided consulting services to PAN Farm and its subsidiaries to adopt the best application of international practices in food safety and management of social and environmental impacts.

“Our priority is to help Viet Nam agriculture cultivate productive, effective, climate-smart and environment-smart crops. With the assistance of IFC, PAN Farm’s standards on food and environment safety and social standards will meet the best international practices, contributing to enhancing industry standards in Viet Nam,” said Mr. Kyle.

According to PAN Farm representative, the mobilized capital in this phase will be used to expand their seed production and trade, apply high technologies and science in the production of high-quality, safe and traceable flower, vegetable, fruit and other agricultural products, which creates a complete value chain to serve both Vietnamese and international market.

Mrs. Nguyen Thi Tra My, Chairwoman of PAN Farm said “the successful capital mobilization of PAN Farm proves a great interest of international investors in the potential of Viet Nam agriculture in general, and of PAN Farm in particular. It, on the other hand, helps build and strengthen agricultural foundation of PAN Group. We appreciate the cooperation of IFC with PAN Group during the past time. Such a financial institute as IFC with their extensive experience in agriculture investing in PAN Farm will help us expand our production and trade of high-quality seed, flower, vegetable and agricultural products, as well as apply international standards for sustainable agricultural practices”.

PAN Farm is also developing a cooperative mechanism with farmers via their own standard model. Currently, the model is being applied in 60 provinces and cities where PAN consumes products produced by farmers in compliance with their process. With the guarantee of the company, it is easy for banks to approve loans to farmers to fund their production.