Global finance fund feeds $15 million into Vietnam’s livestock

By Dam Tuan   June 17, 2016 | 02:42 pm GMT+7

The International Finance Corporation (IFC), a member of the World Bank Group, officially announced on June 16 it will invest VND340 billion ($15 million) in Anova Feed JSC to build more animal feed facilities in support of the country’s growing livestock industry.

The IFC will provide the investment through five year convertible bonds to help Anova Feed build two more mills in the provinces of Dong Nai and Hung Yen and a warehouse in Long An Province over the next two years. The feed producer’s new mills and livestock warehouse will create more than 500 new jobs and supply livestock products to nearly 40,000 farmers all over the nation.

Nguyen Hieu Liem, CEO of Anova Corporation, said: “IFC’s financing will help Anova Feed triple its production capacity, providing quality and reliable feed to the fast growing animal protein sector in Vietnam and we are also seeking IFC’s advice in expanding our reach to other countries and strengthening corporate governance standards in preparation for a listing.”

The IFC will support Vietnam's livestock production to pursue food safety and create hundreds of jobs. Photo by VnExpress Photo Contest/

The IFC will support Vietnam's livestock production to pursue food safety and create hundreds of jobs. Photo by VnExpress Photo Contest/Le Quoc Hung

In addition to financing, the IFC will help Anova Feed deploy sustainable operations by applying IFC Performance Standards and the World Bank Group Environment, Health and Safety Guidelines. Domestic demand for meat has increased rapidly thanks to the country’s growing population and higher standards of living. Vietnam's agriculture sector has been driven by small production and its farmers are seeking sustainable measures in bio-security and feed quality.

“IFC aims to support the sustainable development of Vietnam’s agricultural sector, which is rapidly growing and accounts for more than 20 percent of the country’s gross domestic product,” said Kyle Kelhofer, IFC Country Manager for Vietnam, Cambodia and Laos. “By supporting companies like Anova Feed, we are promoting the development of efficient and sustainable local private enterprises along the agribusiness supply chain as a driver of competitiveness and improvement in agriculture products in the local market.”

The IFC has stepped up its investments in agriculture in recent years. In the fiscal year ending in June 2015, the IFC invested $3 billion across the agriculture supply chain—from production to retail distribution, to help improve output, foster liquidity, promote logistics and distribution, and expand access to credit for small farmers. At the end of the fiscal year, the IFC’s committed agriculture investment reached $5.2 billion.

The IFC is the largest global development institution focused on the private sector in emerging markets, working with more than 2,000 businesses worldwide. In the 2015 fiscal year, the IFC's long-term investments in developing countries rose to nearly $18 billion.

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