IFC invests in agriculture in Vietnam

IFC đầu tư vào bán lẻ, nông nghiệp tại Việt Nam - Ảnh 1. — IFC boosts investment in retail and agriculture sectors in Vietnam

This is the first warehouse-backed loan provided by IFC and SMBC. The loan is made under IFC’s Global Warehouse Finance Program (GWFP). The financing is expected to boost the nascent warehouse finance market in Vietnam and encourage local banks to participate in the agribusiness value chain to optimize financing opportunities in this high-potential sector.

GWFP was launched to enhance working capital for producers or traders of agricultural products by using inventory as collateral. Launched in 2010, GWFP has provided over $10 billion in financing globally to date.

Ms. Dang Huynh Uc My, Vice Chairwoman of TTC AgirS, said that this financing solution will be a premise for TTC AgriS to receive loans through the use of raw materials as collateral. This will help the company be more proactive and flexible in purchasing, storing and distributing raw materials and goods, aiming for an optimal system to achieve the highest efficiency.

"We believe that the cooperation with IFC and SMBC will be an important part of TTC AgriS' circular economy development strategy, in line with the orientation of transforming the integrated smart agricultural economic model to affirm its leading position in the market for comprehensive agricultural business solutions in Vietnam and in the region," said Ms. My.

Thomas Jacobs, IFC Country Manager for Vietnam, Cambodia and Lao PDR, said: “IFC prioritizes the agribusiness sector because of its significant development and poverty reduction impact. With robust economic growth, a growing middle class and increased demands for food safety and hygiene in Vietnam, these two investments will help diversify into better products and services for consumers, support local producers and facilitate the flow of goods – key to the future recovery and resilience of the agricultural sector. This will contribute to enhancing the competitiveness of Vietnam’s agribusiness value chain, creating more jobs and improving people’s livelihoods.”

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