The International Finance Corporation (IFC) will provide US$18 million for an instant coffee processing factory in Vietnam to help improve its coffee-processing capacity.

The factory, which is owned by the Ngon Coffee Company, exports instant coffee products to more than 58 countries.

Simon Andrews, IFC regional director for Vietnam, Thailand, Cambodia and Laos, said Vietnam’s coffee industry has great potential for development. The IFC investment will help the country promote exports of high quality coffee and improve the industry’s competitiveness, as well as incomes for local farmers and workers.

The IFC has provided significant assistance to Vietnam’s coffee industry since 2010 by setting up a training centre for farmers to help them obtain certification for sustainable production and increase product prices to raise their incomes.

The CEO of Ngon Coffee Company, Pajendra Prasad Challa, said the company will spend this investment capital on new processing techniques and equipment to produce high quality, environmentally friendly products.

Vietnam is the world’s second largest coffee producer and exporter but 97 percent of its exported coffee is unprocessed so it sells for a low price, Challa added.

The IFC is a member of the World Bank that focuses on mobilizing capital from international financial markets to help developing countries promote sustainable growth.

Source: VOV