'Pepper king' Phuc Sinh receives $15 mln capital injection from Dutch bank FMO

Phuc Sinh JSC, a leading pepper and coffee exporter in Vietnam, has received $15 million from Dutch Business Development Bank (FMO) to build a coffee factory in the Central Highlands province of Dak Nong.

Phuc Sinh and FMO signed the funding contract in Ho Chi Minh City on Friday.

This is the third capital injection from banks and investment funds for this Vietnamese company since August 2024.

FMO’s $15 million financing package includes a $12 million loan from Dutch Fund for Climate and Development (DFCD) Land Use Facility for the construction of a new coffee processing factory in Dak Nong and a $3 million building prospects facility for working capital needs.

"This partnership exemplifies how strategic investments can drive meaningful climate action and create lasting positive impacts. By supporting Phuc Sinh's expansion of Rainforest Alliance-certified coffee cultivation, we aim to support smallholder farmers and promote sustainable practices that benefit both the environment and local communities," said Aart Mulder, principal investment officer of FMO.

Phan Minh Thong, chairman of Phuc Sinh Group, commented: “Sustainable development is not just a trend; it is an inevitable path if a business wants to go far. When Phuc Sinh implements ESG, we not only improve our internal strength but also open the door to cooperation with European funds."

"FMO is a partner with a strict evaluation process and high requirements, but this only reinforces the value of what we are building. After just six months, Phuc Sinh has proven that sustainable agriculture is not just a theory but a practical model that brings real benefits to both businesses and Vietnamese farmers," he noted.

Thong added that international organizations continue to invest in Phuc Sinh due to its 16 years of commitment to sustainable development, a transparent business system, and high-quality products. In particular, the company also supports farmers in the highlands to help stabilize their livelihoods.

The first round of funding the company negotiated took 22 months, but this time, Phuc Sinh completed the process in just 12 months, he highlighted.

A representative from FMO remarked that the decision to partner with Phuc Sinh was based not only on its economic contributions but also on the company’s strong commitment to sustainable development.

Phuc Sinh currently works with over 2,000 coffee-growing households in the northern province of Son La and plans to expand in order to ensure sustainable production and increase farmers' incomes. Founded in 2001, the company exports agricultural products to 102 countries.