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IFC Invests Millions in Vietnam’s Seed Sector to Support Sustainable Agriculture

Hanoi, Vietnam, May 4, 2017 —IFC, a member of the World Bank Group, has invested VND 230 billion (approximately $10.2 million equivalent) in PAN Farm JSC to support the expansion of its existing seed business and new export-quality flower, fruit and vegetable operations, contributing to food safety and creating about five hundred jobs.
Rice is one of Vietnam’s major food crops and agricultural exports. The country’s seed sector is dominated by rice seeds, which is undergoing a notable shift from low quality saved seeds to certified seeds.
IFC’s equity investment, which represents about 10.4 percent of the company’s share capital will help PAN Farm expand its seed business through its subsidiary National Seed Corporation JSC (Vinaseed), the largest producer and distributor of crop seeds in Vietnam.
Vinaseed is developing seeds suitable for local weather conditions to improve yields and combat climate change impacts such as drought and saline intrusion in the Mekong Delta and south central coastal regions.
To date, the company has a 19 percent market share in rice seeds and a 60 percent market share in white corn seeds. Patented seed sales account for about 49 percent of its 2016 consolidated revenues and is expected to increase to 82 percent by 2020.
PAN Farm is a new subsidiary of The PAN Group, a leading Vietnamese agribusiness and food company. This is IFC’s second investment supporting the group as a long term partner.
“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. “We appreciate the partnership between IFC and The PAN Group over 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.”
IFC’s funding will also support PAN Farm’s new horticulture crops through its subsidiary PAN-SALADBOWL JSC and other new joint ventures to be set up in the future. PAN-SALADBOWL produces flowers for export to Japan and is entering high quality fruit and vegetable markets in Vietnam, leveraging its Japanese strategic partners’ expertise in greenhouse cultivation.
IFC is also providing advisory services to help PAN Farm and its subsidiaries adopt international best practices in food safety and environmental and social performance.
“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.”
IFC has significantly scaled up its engagement in agribusiness in recent years. In the fiscal year ended in June 2016, IFC’s global investments across the agribusiness supply chain totaled $3.4 billion. IFC aims to help boost production, increase liquidity, improve logistics and distribution, and expand access to credit for small farmers. At the end of the fiscal year, IFC’s agribusiness portfolio stood at $5.6 billion.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with 2,000 businesses worldwide, we use our six decades of experience to create opportunity where it’s needed most. In FY16, our long-term investments in developing countries rose to nearly $19 billion, leveraging our capital, expertise and influence to help the private sector end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org
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About PAN Farm
Owning agricultural foundation of The PAN Group, including Vinaseed and PAN-SALADBOWL, PAN Farm is the pioneer company in agricultural value chain. The company originates and takes advantages of the Farm-Food-Family strategy. With a purpose of providing advanced agricultural solutions and international-standard agriproducts, PAN Farm creates sustainable foundation in The PAN Group.