Dutch bank FMO grants $15 million to Phuc Sinh

Dutch bank FMO grants $15 million to Phuc Sinh

The Dutch Entrepreneurial Development Bank (FMO) signed a funding contract worth $15 million with Phuc Sinh Corporation in Ho Chi Minh City on April 4.

All of the funding will be used to build Phuc Sinh's factory in the Central Highlands province of Dak Nong. The move marks an important milestone in Phuc Sinh's sustainable development and business expansion journey.

Phan Minh Thong, general director of Phuc Sinh Group, said, "With FMO's funding, Phuc Sinh can raise its production capacity, invest in sustainable agricultural projects, apply advanced technology to the supply chain, and increase the value of Vietnamese coffee products, promoting Vietnamese agriculture to reach international standards towards a green and sustainable business model."

"By applying environmental, social, and governance, Phuc Sinh boosts its internal strength and opens the door to collaborate with European funds. FMO is a partner with a strict appraisal process and high requirements, which affirms the value of what we are building. After only six months, Phuc Sinh has proven that sustainable agriculture is not just a theory but a practical model, bringing real benefits to both businesses and Vietnamese farmers," he added.

As of April, Phuc Sinh had received more than VND 1 trillion ($38.8 million) from international financial institutions. Among them, 80 per cent of the funding has been used to build factories. New technologies are implemented for green projects in line with the sustainable development strategy that Phuc Sinh has pursued for over a decade.

Ammarens Bruggenkamp, manager of agribusiness at FMO, said, "Phuc Sinh is aligned with the bank’s strategic plan and agriculture, food, and forestry strategy. The company not only creates local value and jobs but also supports climate change mitigation and economic growth. Sustainable development is the optimal way for businesses to adapt and cope with future climate and environmental fluctuations."

Vietnam is the world's second-largest coffee exporter, boasting an export value of $5.48 billion in 2024. The coffee industry continues to play a key role in Vietnam's agricultural economy and is one of the country's fastest-growing agricultural exports. The EU remained Vietnam's largest coffee export market in 2024.

VIR