Nafoods signs $20 million cooperation agreement with FMO

Nafoods signs $20 million cooperation agreement with FMO

Nafoods Group has signed a $20 million cooperation agreement with the Netherlands Development Finance Company (FMO), one of the world’s leading development finance institutions.

The agreement underscores the two sides' commitment to creating a green, sustainable, and responsible agriculture sector.

The $20 million funding will enable Nafoodsto enhance its production capacity and seize sustainable development opportunities. This will strengthen Nafoods' financial capacity and reflect the shared vision, strategy, and core values of both parties, aiming towards a green, digitalised, and sustainable future.

Nguyen Manh Hung, vice chairman and CEO of Nafoods Group, stated, "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 Vietnam's leading fruit exporter in line with sustainable development, maintain our leading position in passion fruit seedlings, and successfully build the Nafoods consumer brand. With this vision, we aim to reach $200 million in revenue by 2030."

The funding will be allocated to Nafoods' key strategic projects, including $12.5 million to expand production capacity and diversify the product portfolio. $2.5 million will be earmarked for sustainable development projects to reduce environmental impacts and mitigate global warming risks. The remaining $5 million will provide working capital to support Nafoods' long-term growth strategy.

Bas Revelt, principal investment officer at FMO, shared, “This agreement is meaningful to FMO for two reasons. First, Nafoods becomes our first client in Asia's 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 collaborated with IFC, Finnfund, Endurance Capital, and most recently responsAbility Investments AG, reaffirming its position as a trusted destination for leading global green investment funds.

VIR