FMO proposes $15 million investment in Vietnamese shrimp producer
FMO proposes $15 million investment in Vietnamese shrimp producer
Dutch Entrepreneurial Development Bank (FMO) is mulling a credit package of $15 million for Vietnamese shrimp producer Camimex Group JSC.
According to a disclosure by FMO on January 18, the proposed transactions should strengthen climate adaptation and resiliency of shrimp farmers and sequester carbon through increasing mangrove coverage.
It should also help create jobs, strengthen food production and security, improve farmers' livelihoods. Camimex’ vision aligns with FMO’s in promoting sustainable aquaculture in Vietnam.
The $15 million facility is aimed to finance expansionary capex to construct a new processing factory (6,000 hectares), including cold storage and fast freezing systems, as well as constructing new organic hatcheries. It will also provide working capital required for certifications and purchasing of organic shrimp.
The capex forms part of a larger plan to improve the incomes of 7,200 smallholder farmers through organic certifications and supplying organic certified shrimp postlarvae, promoting the sustainable management of up to 16,300ha of wetlands by promoting sustainable Silva-aquaculture practices, which includes mangrove cover expansion.
Camimex is one of Vietnam’s leading processors and exporters of conventional and premium organic shrimps. Established in 1977 in the Ca Mau province of the Mekong Delta, the company processes seafood, mainly shrimps, at three processing factories, with an annual capacity of 15,000 tonnes.
The company sources organic shrimp from over 1,200 smallholder farmers across 6,300ha of integrated mangrove farms. Camimex employs about 1,100 people directly.
Founded in 1970, FMO is a public-private development bank. We have investments in more than 85 countries, offering private sector companies and financial institutions in developing countries various financial products, as well as expertise and access to our networks.
Last November, FMO approved a $90-million credit package for Loc Troi Group, thereby contributing to the sustainable development of the agricultural sector in Vietnam.
