IFC focuses on Vietnam’s transition to low-carbon model

The IFC is supporting A An Food JSC to enhance its rice production quality and sustainability

The announcement of the new partnership with Tan Long Group was made as IFC’s Regional Vice President for Asia and the Pacific, Riccardo Puliti, arrived in Vietnam for a two-day visit, aiming to focus on the country’s transition to a productive, high-value and low-carbon growth model.

Under the new advisory agreement, the IFC will help A An Food JSC–the rice business subsidiary of Tan Long Group, a key agribusiness player in the country–develop a safe, low-carbon, high-quality, and sustainable rice supply chain.

This includes supporting thousands of rice farmers and mills in adopting food safety measures, food loss prevention, and low-carbon practices, lowering production costs by up to 15 per cent and reducing the post-harvest loss rate by half, to below 8 per cent by 2030.

“IFC’s support will help Tan Long Group develop a sustainable rice production strategy to realise our goal of supplying up to five million tons of green, safe, and high-quality rice within the next 10 years. As a leading rice processor, distributor, and exporter, we are keen to adopt low-carbon production practices in line with international standards, reducing the sector’s emissions and boosting the country’s climate and economic resilience,” said Truong Sy Ba, Chairman of Tan Long Group.

IFC’s Regional Vice President for Asia and the Pacific, Riccardo Puliti is in Vietnam for a two-day visit, aiming to focus on the country’s transition to a productive, high-value and low-carbon growth model

At a meeting with senior government officials, Puliti reiterated the IFC’s commitment to supporting Vietnam’s development and climate goals by boosting productivity and sustainability, facilitating climate business markets and mobilising international financing for green and resilient growth.

During his visit, Puliti will also meet business representatives to gain insight into the challenges and opportunities facing the local private sector and discuss how the the IFC can spur private sector investment to support Vietnam’s economic transformation, especially in sectors where the private sector's participation would significantly help ease the burden on the state budget, including agribusiness, tourism, and logistics.

“As Vietnam aims to become a high-income economy by 2045, boosting the agriculture sector’s value and competitiveness by improving production, reducing losses, and enhancing safety, quality and sustainability will be critical to make the sector continue to be the key contributor to economic growth and job creation,” said Puliti.

"By supporting local agribusinesses like Tan Long Group to develop local food systems that are greener, more productive, and resilient to a changing climate, we are not only helping strengthen the country’s food supply chain but also reducing emissions from agriculture, enabling Vietnam to achieve net-zero by 2050."

Active in Vietnam for more than 20 years, the IFC has been a key partner in the country’s development journey, and that of its private sector, providing billions of dollars to local businesses to grow and create jobs since its first in-country investment in 1994. Sustainability and climate are a priority for the IFC in Vietnam as the institution has committed over $900 million in long-term finance to support climate-related projects in the country.

Recently, the IFC invested up to $150 million in Vietnam’s first local currency sustainability-linked bonds–issued by BIM Land JSC and its subsidiary Thanh Xuan JSC–to allow the developers to improve water conservation and energy efficiency in three of their hospitality assets.

Vietnam’s first local currency sustainability-linked bonds aim to boost economy The International Finance Corporation (IFC) is investing around $150 million in local currency sustainability-linked bonds (SLBs) to be issued by BIM Land JSC and its subsidiary Thanh Xuan JSC.

Forum discusses impact of climate change The 2023 Vietnam Climate Forum took place in Hanoi on September 21. The event was co-organised by the State Bank of Vietnam (SBV) in partnership with the International Finance Corporation (IFC).

Digital transformation is the way forward for agriculture Experts, government officials, industry leaders, and innovators from around the world gathered in Hanoi on November 9 for a crucial event to explore how digital tools can transform Vietnam's agricultural sector, making it more competitive, sustainable, and climate-resilient.