IFC on Friday signed two new investments in Viet Nam’s retail and agribusiness sectors, striving to strengthen the agribusiness value chain and ensure food security while creating more job opportunities.

IFC’s investment of VND460 billion (US$20 million) in CVS Joint Stock Company, a subsidiary of Son Kim Retail Corporation (SonKim Retail), will help expand the retail network of GS25 Vietnam, a leading convenience store operator in the country.

The funding will help GS25 Vietnam – a joint venture between Viet Nam’s SonKim Retail and Korean firm GS Retail – open over 500 new convenience stores nationwide by 2025, creating up to 6,000 jobs.

Meanwhile, the partnership between IFC and Japanese Sumitomo Mitsui Banking Corporation (SMBC), will help arrange a $40 million commodity-backed warehouse finance facility for Thanh Thanh Cong-Bien Hoa Joint Stock Company (TTC AgriS), a major local agricultural enterprise.

The facility which will be processed under the IFC's Global Warehouse Finance Programme (GWFP) aims to expand Viet Nam's local warehouse financing market and encourage local banks to engage in the agribusiness value chain in order to maximise agri-financing opportunities in this high-potential industry.

Thomas Jacobs, IFC Country Manager for Viet Nam, Cambodia, and Lao PDR said that IFC has made agribusiness a priority because of its potential for broad development impacts and strong role in poverty reduction. Both of its investments will help offer improved product variety and services to consumers, support local producers, and facilitate commodity trade flows, which are key to the country’s future resilience. — VNS