A An Food JSC signed an advisory agreement on the establishment of a sustainable rice supply chain with the International Finance Corporation (IFC), a member of the World Bank Group Tuesday. 

HÀ NỘI — A An Food JSC signed an advisory agreement on the establishment of a sustainable rice supply chain with the International Finance Corporation (IFC), a member of the World Bank Group on Tuesday. 

Under the agreement, the IFC will help A An Food, the rice subsidiary of Tân Long Group (TLG), a leading agriculture business in Việt Nam, in developing a safe, low-carbon, high-quality, and sustainable rice supply chain. The partnership also aims to help raise income for farmers and mills along the company’s supply chain and reduce greenhouse gas emissions in rice farming.

“IFC’s support will help Tân Long Group develop a sustainable rice production strategy to realise our goal of supplying up to five million tonnes of green, safe, and high-quality rice within the next 10 years. As a leading rice processor, distributor, and exporter, we are keen to adopt low-carbon production practices in line with international standards, reducing the sector’s emissions and boosting the country’s climate and economic resilience,” said Trương Sỹ Bá, Chairman of Tân Long Group.

The partnership also aims to help support thousands of rice farmers and mills in adopting food safety measures, food loss prevention, and low-carbon practices, lowering production costs by up to 15 per cent and reducing the post-harvest loss rate by half, to below 8 per cent by 2030.

The announcement of the new partnership with Tân Long Group was made as IFC’s Regional Vice President for Asia and the Pacific, Riccardo Puliti, arrived in Việt Nam for a two-day visit, aiming to focus on the country’s transition to a productive, high-value and low-carbon growth model. 

“As Việt Nam aims to become a high-income economy by 2045, boosting the agriculture sector’s value and competitiveness by improving production, reducing losses, and enhancing safety, quality and sustainability will be critical to make the sector continue to be the key contributor to economic growth and job creation. By supporting local agribusinesses like Tân Long Group to develop local food systems that are greener, more productive, and resilient to a changing climate, we are not only helping strengthen the country’s food supply chain but also reducing emissions from agriculture, enabling Việt Nam to achieve net-zero by 2050,” said Puliti.

At an earlier meeting with senior government officials, Puliti reiterated the IFC’s commitment to supporting the Southeast Asian country’s development and climate goals by boosting productivity and sustainability, facilitating climate business markets and mobilising international financing for green and resilient growth. 

During his visit, Puliti will also meet business representatives to gain insight into the challenges and opportunities facing the local private sector and discuss how IFC can spur private sector investment to support Việt Nam’s economic transformation, especially in sectors where the private sector’s participation would significantly help ease the burden on the State budget including agribusiness, tourism, and logistics.

Since entering the country more than 20 years ago, IFC has been a key partner in the country’s development journey, and that of its private sector, providing billions of dollars to local businesses to grow and create jobs since its first in-country investment in 1994. Sustainability and climate are a priority for IFC in Việt Nam as the institution has committed over US$900 million in long-term finance to support climate-related projects in the country. — VNS

Published Date: November 16, 2023