Nafoods Group has signed a cooperation agreement worth US$20 million with the Netherlands Development Finance Company (FMO), one of the world's major development finance institutions. The agreement focuses on supporting sustainable agriculture.
The funding will be used to expand production capacity and implement projects aimed at long-term development. Nguyen Manh Hung, vice chairman and CEO of Nafoods Group, said, "This funding will help realise our 2025-2030 strategy to make Nafoods a pioneer in digitalised, green, and sustainable agriculture. Our goal is to become a fruit exporter in line with sustainable development, maintain our position in passion fruit seedlings, and successfully build the Nafoods consumer brand. With this vision, we aim to reach US$200 million in revenue by 2030."
© nafoods
From the total investment, US$12.5 million is allocated to expanding production capacity and diversifying the product portfolio. US$2.5 million will go towards sustainability projects to lower environmental impacts and address climate-related risks. The remaining US$5 million will be used as working capital to support long-term growth.
Bas Revelt, principal investment officer at FMO, commented, "This agreement is meaningful to FMO for two reasons. First, Nafoods becomes our first client in the Asia fruit processing and export sector. Second, the partnership is aligned with FMO's strategy to expand into more agricultural subsectors and support farmers and sustainable businesses. Agriculture is the backbone of many economies. By partnering with companies like Nafoods, we believe we can help drive positive change."
Nafoods has previously cooperated with other international investment partners, including IFC, Finnfund, Endurance Capital, and responsAbility Investments AG.
Source: Vietnam Investment Review
