IFC invests $52 mln in agri-producer Mavin

By Tuong Thuy
Sun, September 4, 2022 | 5:03 pm GTM+7

The World Bank’s investment arm IFC has pumped $52 million into Mavin Group in Vietnam to support the corporation in expanding sustainable pig farming.

The investment is part of its African Swine Fever (ASF) Regional Recovery Program, IFC said in a release Sunday, noting that Mavin was considered Vietnam’s largest producer of veterinary products with 400 distributors nationwide.

Mavin has four business units - pork production, meat processing, feed mill operation and veterinary health products manufacturing - located across the country.

The three pig breeding farms of Mavin supported by the IFC investment are a 62-hectare farm in K'Bang district, Gia Lai province; a 100-hectare farm in Anh Son district, Nghe An province; and a farm of 45 hectares in Dong Thap province’s Cao Lanh district.

Mavin Farm is one of the leading pork producers in Vietnam. Photo courtesy of Mavin Group.

Mavin Farm is one of the leading pork producers in Vietnam. Photo courtesy of Mavin Group.

IFC said the farm expansions are projected to increase Mavin’s breeding herd by 7,500 head (to a cumulative breeding stock of around 15,600) and gilt raising capacity by 72,000 head (to a total of about 87,400 head). The increase in breeding stock is expected to result in a threefold increase in Mavin’s contracted porker farms to 150 operating units by 2025, or around 900,000 head.

For these contracted pig farms, two models apply, according to the IFC. The first approach is for already constructed facilities, and Mavin engages directly with the operators and will sign contracts with the businesses for a period of three to five years.

In the second approach, which is for new constructions, Mavin will identify a suitable location and require the landowner to build a facility to the company’s technical specifications with an agreement to engage in contracted farming once the site is constructed.

The Hanoi-based Mavin Group had announced this IFC investment in May. “IFC’s support in financing and their knowledge and expertise can help us become the leader in safe food production under the "From Farm to Table" supply chain in Vietnam and assist Mavin meet international best practices in pig farming," group chairman David John Whitehead had said then.

The group, established in 2004, has four subsidiaries: Mavin Farm, Mavin Feed, Mavin Food and Mavin Vet. The first is one of Vietnam’s main pork producers, while Mavin Feed operates five mills across Vietnam with an annual production capacity of 1.24 million tons of animal feed.

Mavin Food operates one meat processing factory in northern Vietnam’s Ha Nam province with a production capacity of 10,000 tons per annum. The last unit runs the Cai Lay Veterinary Pharmaceutical JSC in the Mekong delta province of Tien Giang, producing antibiotic and nutrient treatment products for livestock.

In another news, the Asian Development Bank (ADB) said it has approved a $20-millon loan to support Vietnamese carmaker VinFast’s operation and expansion in the country.

ADB said the loan will be used for the production of electric vehicles, scooters, buses, electric vehicle charging stations, battery manufacturing facilities and other electric vehicle-related activities.

The ADB also disclosed Thursday that it has proposed to extend a loan of about $91.4 million to renewable energy developer AC Energy’s wind power developments in Vietnam. The proposal consists of $35 million in ordinary capital sources and a B loan of $56.4 million. AC Energy is the electricity platform of the Ayala Group, one of the Philippines’ largest conglomerates.

B loans, also called term loans, are ones made by institutional investors whose primary goal is to maximize the long-term total returns on their investments. B loans typically mature within six to seven years. Interest rate margins on them are higher than the interest rate margin on A loans and any revolving credit loan under the same loan agreement.

Comments (0)
  • Read More
Work starts on significant HCMC beltway

Work starts on significant HCMC beltway

Construction on an 8.7-kilometer section of Ho Chi Minh City's Ring Road 3 kicked off Saturday and is set for completion in three years.

Infrastructure - Sat, September 24, 2022 | 9:07 pm GTM+7

VN-Index loses 31 points in week of US interest rate hike

VN-Index loses 31 points in week of US interest rate hike

Vietnam’s benchmark VN-Index decreased to the area close to 1,200 points at the end of this week, down 31 points following the U.S. Federal Reserve’s mid-week interest rate hike of 75 percentage points.

Finance - Sat, September 24, 2022 | 5:02 pm GTM+7

Four Phu Quoc Island hotels win best titles in Asia

Four Phu Quoc Island hotels win best titles in Asia

Four hotels on Phu Quoc Island, namely Novotel, Pullman, New World and JW Marriott, were honored Thursday at Haute Grandeur Global Hotel Awards with titles in different categories.

Travel - Sat, September 24, 2022 | 4:18 pm GTM+7

European training for Vietnam football talents

European training for Vietnam football talents

Phat Dat Real Estate Development Corporation has become a key sponsor of a strategic cooperation in developing young football talents in Vietnam.

Companies - Sat, September 24, 2022 | 3:44 pm GTM+7

Deposit rates surge after central bank raises rate ceiling

Deposit rates surge after central bank raises rate ceiling

A slew of small- and medium-size commercial banks have hiked their deposit interest rates by 0.3-1 percentage points after the State Bank of Vietnam raised the deposit rate ceiling Friday.

Banking - Sat, September 24, 2022 | 3:10 pm GTM+7

Remove bottlenecks, facilitate FDI flows among Mekong Subregion: experts

Remove bottlenecks, facilitate FDI flows among Mekong Subregion: experts

Greater awareness of the opportunities and required policy support are key to expanding the scale, quality and speed of foreign investment in the Mekong Subregion, experts say.

Economy - Sat, September 24, 2022 | 1:24 pm GTM+7

Vingroup gets green light for second battery factory

Vingroup gets green light for second battery factory

The nation’s largest private conglomerate, Vingroup, has received in-principle approval to build its second auto battery plant in the same economic zone as the first in central Vietnam.

Industries - Sat, September 24, 2022 | 11:59 am GTM+7

Q4 shopping demand to electrify goods storage space

Q4 shopping demand to electrify goods storage space

Stiffer competition among online shopping sites in Vietnam during the last three months of the year will drive up inner-city warehouse occupancy rates, according to Cushman & Wakefield.

Real Estate - Sat, September 24, 2022 | 10:46 am GTM+7

EVN responsible for price talks with renewables projects missing FiT deadline: regulators

EVN responsible for price talks with renewables projects missing FiT deadline: regulators

Vietnam Electricity (EVN) is responsible for negotiating prices and outputs with wind and solar power developers that have failed to meet the country’s feed-in-tariff deadline, says the Electricity Regulatory Authority.

Energy - Sat, September 24, 2022 | 9:05 am GTM+7

Vietnam requires $13-bln seaport infrastructure investment by 2030

Vietnam requires $13-bln seaport infrastructure investment by 2030

Vietnam needs to invest $13 billion in seaport infrastructure by 2030 to improve the handling of container goods from the current 24 million twenty-foot equivalent units (TEU) a year to 30-40 million.

Infrastructure - Fri, September 23, 2022 | 11:07 pm GTM+7

France aids Vietnam utility’s energy transition with EUR1 million grant

France aids Vietnam utility’s energy transition with EUR1 million grant

The French Development Agency (AFD) and the Electricite de France (EDF) have signed an agreement on financing Vietnam Electricity (EVN) with EUR1 million ($982,000) to facilitate the latter’s energy transition.

Energy - Fri, September 23, 2022 | 8:29 pm GTM+7

Lam Dong approves 2 wind power projects worth $186 mln

Lam Dong approves 2 wind power projects worth $186 mln

The Central Highlands province of Lam Dong has approved two wind power projects with a total capacity of 40 megawatts and investment of VND4,398 billion ($185.5 million).

Energy - Fri, September 23, 2022 | 4:55 pm GTM+7

CloudEats to continue SEA expansions with new investment capital

CloudEats to continue SEA expansions with new investment capital

CloudEats, a pioneering cloud kitchen company with a presence in Vietnam and the Philippines, has raised a $7 million Series A extension led by Nordstar Capital to reach more Southeast Asian markets.

Industries - Fri, September 23, 2022 | 4:48 pm GTM+7

Spanish developer to operate wind power projects in SE Asia, including Vietnam

Spanish developer to operate wind power projects in SE Asia, including Vietnam

Spanish renewables developer Acciona Energia has entered into a strategic partnership with Asia’s The Blue Circle to build and operate the latter’s pipeline of projects in Vietnam and Southeast Asia.

Energy - Fri, September 23, 2022 | 4:24 pm GTM+7

HCMC needs infrastructure development breakthroughs: Party leader

HCMC needs infrastructure development breakthroughs: Party leader

Party chief Nguyen Phu Trong on Friday asked Ho Chi Minh City to prioritize construction and create stronger advances in growing the southern economic hub’s infrastructure system.

Politics - Fri, September 23, 2022 | 3:40 pm GTM+7

Hanoi attracts $992 mln in nine-month FDI

Hanoi attracts $992 mln in nine-month FDI

Hanoi attracted $992.4 million in foreign direct investment in the year to September 20, up 15% year-on-year.

Investing - Fri, September 23, 2022 | 3:19 pm GTM+7