The International Finance Corp. (IFC) has invested US$6.5 million into one of Vietnam’s leading agribusinesses, Pan Pacific Corp.
The equity investment represents approximately 5% of the share capital of the company. Pan Pacific plans to use the funds to advance its long-term goal of acquiring additional agricultural and food businesses, and to further consolidation in the sector, which has been flagged as a fundamental pillar of Vietnam’s economy and economic growth. Vietnam’s agricultural sector, including fish and timber account for more than 20% of the country’s gross domestic product (GDP) and 28% of total export revenues. In addition to financing, the IFC will provide Pan Pacific with support in the pursuit of sustainable development through the adoption of IFC Performance Standards and World Bank Group Environment, Health and Safety Guidelines. It will also help Pan Pacific raise governance and transparency standards. The IFC, which is the world’s largest development institution dedicated to the private sector, has increased its allocation to agriculture and agribusiness in recent years. In fiscal year 2014 it invested $4 billion along the agricultural supply chain, and at the close of the fiscal year its agribusiness portfolio totaled $6.1 billion.