The investment will help PAN Farm expand its seed business via its subsidiary National Seed Corporation JSC (Vinaseed), the largest producer and distributor of crop seeds in Vietnam.
Vinaseed holds 19 percent of the market share in rice seeds and 60 percent in white corn seeds.
Patented seed sales account for about 49 percent of its 2016 consolidated revenues, a figure 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 in the group.
PAN Farm’s success in raising the capital represents the potential of Vietnamese agriculture and the company to international investors, said Chairwoman Nguyen Thi Tra My.
IFC’s investment in PAN Farm with their international experience in the agriculture sector will help PAN Farm expand its seed and horticulture business and apply sustainable farming practices and standards, she added.
IFC’s funding will also support PAN Farm’s new horticulture crops through its subsidiary PAN-SALADBOWL JSC and other joint ventures to be established in the future.
PAN-SALADBOWL produces flowers for export to Japan and is entering the high quality fruit and vegetable market in Vietnam, leveraging its Japanese partners’ expertise in greenhouse cultivation.
IFC also provides advisory services to help PAN Farm and its subsidiaries adopt international practices in food safety and environmental and social performance.
“Our priority is to support the Vietnamese agriculture sector by helping build productive, efficient and climate-resilient crops,” said Kyle Kelhofer, IFC Country Manager for Vietnam, Cambodia and Laos.
“With IFC’s support, PAN Farm’s food safety and environmental and social standards will match international best practices and boost local industry standards,” he added.
Source: VNA