Phuc Sinh secures $25 million loan from Dutch fund

August 14, 2024 | 19:06

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Phuc Sinh, Vietnam's largest spices exporter, will obtain a loan worth over $25 million from SAIL Investments’ Netherlands-based &Green Fund.

Phuc Sinh secures $25 million loan from Dutch fund

Phuc Sinh becomes the first Vietnamese company to receive direct support from the environmentally focused foundation. The company will allocate the funds to ensure deforestation-free coffee supply chains.

“We are committed not only to improving product quality but also to ensuring that Phuc Sinh’s production process contributes to environmental protection and community support,” the company said.

Phuc Sinh specialises in trading of black and white pepper, coffee, desiccated coconuts, chilli, star aniseed, cinnamon, tea, sesame and cashew nuts.

Its products are sourced from reliable suppliers with special emphasis on quality after these products are carefully sorted and graded before delivery to meet the entire satisfaction of buyers.

It is imperative for Vietnamese businesses like Phuc Sinh to integrate environmental, social, and governance criteria into their production and business activities as global investors push for both profits and sustainability.

&Green, established in 2017 with an anchor investment by the Norwegian government, has to date invested over $165 million in sustainable growth companies operating in countries such as Brazil, Indonesia, and Colombia.

The fund promotes sustainable commodity production and higher productivity on agricultural land in selected countries with important tropical forest resources, thereby decreasing the pressure to clear forests for agricultural purposes. Dutch advisory firm SAIL Ventures acts as the fund’s manager.

Vietnam is one of ten jurisdictions the fund is investing in. In late 2022, &Green made $20 million investment in Netherlands-based Mercon B.V. to promote a sustainable Vietnam coffee supply chain.

ESG activity needs clearer roadmap

Although Vietnam has not yet systematically introduced mandatory requirements for businesses to have environmental, social, and governance reports, domestic enterprises may be eliminated from the game if they do not meet common standards.