WB arm joins with Japanese lender to invest $60 mln in Vietnamese firms

By Thuy Tuong
Fri, June 16, 2023 | 3:51 pm GMT+7

The World Bank’s IFC is making two new investments in Vietnam’s retail and agribusiness sectors to help strengthen the value chain and support food security in the country.

A partnership between IFC and Japanese lender Sumitomo Mitsui Banking Corporation (SMBC) was signed on Friday in Ho Chi Minh City for a $40 million commodity-backed warehouse finance facility for agricultural firm TTC AgriS, part of the HCMC-based conglomerate TTC Group.

Representatives of TTC AgriS, IFC, and Sumitomo Mitsui Banking Corporation sign a $40 million finance deal on June 16, 2023 in Ho Chi Minh City, southern Vietnam. Photo courtesy of IFC.

Representatives of TTC AgriS, IFC, and Sumitomo Mitsui Banking Corporation sign a $40 million finance deal on June 16, 2023 in Ho Chi Minh City, southern Vietnam. Photo courtesy of IFC.

On Thursday, the IFC signed an agreement to invest VND460 billion ($20 million) in CVS, a subsidiary of Vietnam’s Son Kim Retail Corp., to help expand the retail network of GS25 Vietnam, a convenience store chain.

For TTC AgriS, it is the first commodity-backed warehouse finance loan provided by the IFC and SMBC. The facility, to be processed under the IFC's Global Warehouse Finance Program (GWFP), will help boost the warehouse financing market in Vietnam, which is still at a nascent stage.

The funding will also encourage local banks to participate in the agribusiness value chain to optimize agri-financing opportunities in this high-potential sector, the World Bank arm said.

“The facility will allow TTC AgriS to take out loans using raw materials as collateral, which will give us increased working capital to be more flexible to procure, store, and distribute materials and goods, leading to a more efficient system,” said Dang Huynh Uc My, vice chairwoman of TTC AgriS.

TTC AgriS, whose former name is TTC Sugar, is Vietnam’s largest sugar producer and has transformed into an integrated agribusiness. It is headquartered in HCMC with its parent company, TTC Group.

“Our cooperation with the IFC and SMBC will be an important part of our circular economy development strategy, in line with our orientation of transforming into an integrated smart agro-economic business model to affirm our leading position as a comprehensive agriculture solutions provider in Vietnam,” My said.

GWFP under the IFC is looking to increase working capital financing available to agricultural producers and traders by leveraging their commodities in storage. To date, the GWFP has supported over $10 billion in global trade, said the IFC.

Thomas Jacobs, IFC country manager for Vietnam, Cambodia and Laos, said in a release on Friday that the IFC has made agribusiness a priority because of its potential for broad development impacts and strong role in poverty reduction. With solid economic growth, an emerging middle class, and rising demand for improved hygiene and food safety in Vietnam, both our investments will help offer improved product variety and services to consumers, support local producers, and facilitate commodity trade flows, key to the country’s future resilience.

The IFC $20 million funding will help GS25 Vietnam - a joint venture between Son Kim Retail and Korean firm GS Retail - open over 500 new convenience stores nationwide by 2025. The network expansion is expected to create up to 6,000 direct jobs (more than 60% for women) and generate thousands more indirect jobs, with the JV increasing its supply of locally produced food.

Son Kim Retail CEO James Kershek said: “We are deeply committed to championing environmental, social, and governance best practices as demonstrated by our diverse and fast-growing workforce, safe and sustainable food offerings, and management decision-making processes.”

The IFC said it will advise GS25 Vietnam to enhance its in-store food safety practices and reduce food loss and waste.

To date, GS25 Vietnam has expanded its footprint to more than 200 stores in HCMC and the neighboring provinces of Binh Duong, Dong Nai, and Ba Ria-Vung Tau.

The IFC and HCMC-based Vietnam International Bank (VIB) also signed a deal in Singapore on Monday for a five-year USD-denominated loan of $100 million to fuel the Vietnamese private bank’s housing portfolio.

Comments (0)
  • Read More
S Korea chaebol Lotte eyes hypermarket in northern Vietnam

S Korea chaebol Lotte eyes hypermarket in northern Vietnam

South Korean conglomerate Lotte is eyeing projects in Thai Nguyen province, an industrial hub in northern Vietnam, firstly a hypermarket.

Industries - Thu, March 27, 2025 | 12:15 pm GMT+7

Dubai-based PDSI eyes $2.6 bln investment in tourism-golf course project in central Vietnam

Dubai-based PDSI eyes $2.6 bln investment in tourism-golf course project in central Vietnam

PDSI Group, a Dubai-based real estate and consulting firm, has expressed interest in developing a $2.6 billion commercial, tourism, and golf course complex in Binh Thuan, a south-central coastal province of Vietnam.

Real Estate - Thu, March 27, 2025 | 11:38 am GMT+7

S Korea's SK set to divest from Vietnam's giant Vingroup

S Korea's SK set to divest from Vietnam's giant Vingroup

South Korean chaebol SK Group is set to divest from Vietnamese conglomerate Vingroup, according to the former’s annual report 2024.

Companies - Thu, March 27, 2025 | 11:30 am GMT+7

StanChart adjusts USD/VND exchange rate forecast amid changing economic trends

StanChart adjusts USD/VND exchange rate forecast amid changing economic trends

Standard Chartered Bank has adjusted its USD/VND exchange rate forecast, reflecting shifts in global and regional economic conditions.

Economy - Thu, March 27, 2025 | 9:29 am GMT+7

Fund inflows help stabilize Vietnam's stock market: analyst

Fund inflows help stabilize Vietnam's stock market: analyst

As fund inflows are typically long-term investments, they play a key role in stabilizing Vietnam's stock market and preventing sharp fluctuations, according to Nguyen Duy Anh, Chartered Financial Analyst (CFA) at Vietcombank Fund Management Co., Ltd. (VCBF).

Finance - Thu, March 27, 2025 | 8:30 am GMT+7

VSIP begins work on industrial park project in northern Vietnam province Thai Binh

VSIP begins work on industrial park project in northern Vietnam province Thai Binh

Construction of the Vietnam-Singapore Industrial Park (VSIP) Thai Binh commenced on Wednesday in northern Vietnam, with the witness of Vietnamese Prime Minister Pham Minh Chinh and his Singaporean counterpart Lawrence Wong.

Industrial real estate - Wed, March 26, 2025 | 10:41 pm GMT+7

Vingroup starts building mega urban project in Vietnam's Mekong Delta

Vingroup starts building mega urban project in Vietnam's Mekong Delta

Vietnam’s leading private conglomerate Vingroup on Wednesday embarked on construction of the VND28 trillion ($1.1 billion) Vinhomes Green City, the first mixed-use urban development in its ecosystem in the Mekong Delta province of Long An.

Real Estate - Wed, March 26, 2025 | 10:11 pm GMT+7

Indonesia, China cooperate in digital technology

Indonesia, China cooperate in digital technology

Indonesia and China are expanding cooperation in the field of AI to promote digital transformation, especially in the fields of agriculture and smart cities.

Southeast Asia - Wed, March 26, 2025 | 10:01 pm GMT+7

Indonesia decides to join BRICS New Development Bank

Indonesia decides to join BRICS New Development Bank

Indonesian President Prabowo Subianto has announced the Government's decision to become a member of the New Development Bank (NDB), a multilateral development bank established by the five founding member states of the BRICS group.

Southeast Asia - Wed, March 26, 2025 | 9:57 pm GMT+7

Major Vietnamese broker SHS to double charter capital

Major Vietnamese broker SHS to double charter capital

Saigon-Hanoi Securities Corporation (SHS) plans to issue 894 million shares to increase its charter capital from VND8.13 trillion to VND17.07 trillion ($667.6 million), making it one of the top three securities firms in term of charter capital.

Companies - Wed, March 26, 2025 | 8:30 pm GMT+7

Elon Musk company okayed to pilot Starlink satellite internet service in Vietnam

Elon Musk company okayed to pilot Starlink satellite internet service in Vietnam

Vietnam has allowed the U.S.'s SpaceX to pilot Starlink low-orbit satellite internet service in the country on a pilot basis until January 1, 2031.

Industries - Wed, March 26, 2025 | 5:18 pm GMT+7

Danish toymaker Lego to open $1.3 bln Vietnam plant next month

Danish toymaker Lego to open $1.3 bln Vietnam plant next month

Denmark's Lego will officially open its factory in VSIP III Industrial Park in Vietnam's southern province of Binh Duong on April 9.

Industries - Wed, March 26, 2025 | 4:18 pm GMT+7

Top Singaporean firms earn high incomes in Vietnam

Top Singaporean firms earn high incomes in Vietnam

Singapore is the second-biggest foreign investor in Vietnam, with over $84 billion in registered investment capital as of end-January and many prominent investors raking in high incomes.

Companies - Wed, March 26, 2025 | 3:45 pm GMT+7

Vietnam, Singapore ink significant deals in Hanoi

Vietnam, Singapore ink significant deals in Hanoi

Vietnamese Prime Minister Pham Minh Chinh and his Singaporean counterpart Lawrence Wong on Wednesday witnessed the signing of many cooperation deals between agencies and enterprises of the two countries.

Economy - Wed, March 26, 2025 | 2:51 pm GMT+7

Vietnam's major policies are reshaping economic development

Vietnam's major policies are reshaping economic development

Major policies are reshaping Vietnam's approach to economic development, which focuses on science, technology, and private enterprises, said a leader at the Vietnam Chamber of Commerce and Industry (VCCI).

Economy - Wed, March 26, 2025 | 12:11 pm GMT+7

PM okays over $10 bln urban area project in central Vietnam

PM okays over $10 bln urban area project in central Vietnam

The over VND260.3 trillion ($10.16 billion) Cam Lam New Urban Area project in the south-central province of Khanh Hoa has received in-principle approval from Prime Minister Pham Minh Chinh.

Real Estate - Wed, March 26, 2025 | 8:58 am GMT+7