IFC Supports to Improve Food Safety in Vietnam, Enhancing Agribusiness Sustainability

IFC Supports to Improve Food Safety in Vietnam, Enhancing Agribusiness Sustainability

Ho Chi Minh City, July 1, 2017—IFC, a member of the World Bank Group, has signed an advisory agreement with Bel Gà JSC., a leading poultry breeding firm, and launched its Vietnam Food Safety Project that aims to address food safety standards and practices in the country. Improving the quality of food products will help businesses unlock new markets, reduce costs and contribute to better food security.

The annual food consumption in the domestic market accounts for roughly 15 percent of gross domestic product, with the average annual growth rate is approximately 18 percent. But, inadequate safety standards can inhibit the sector’s growth potential, jeopardizing consumer health and reducing market opportunities for local food companies in the modern food value chain.

Over the next three years, IFC will work with agribusiness lead firms and their supply chains to improve food safety and achieve internationally recognized certifications. Subsequently, firms can retain key clients and gain better access to new markets. The project will also help build capacity by raising awareness among key industry players and by training consultants to develop a cadre of experts.

“A strategic priority for Vietnam’s poultry sector is to cater to the domestic market and export quality products — that adhere to food safety standards — at competitive prices,” said Nguyen Xuan Duong, Deputy Director at Animal Husbandry Department, Ministry of Agriculture and Rural Development.

By installing modern food safety management systems, the project can expect a total sales increase of $30 million from all participating firms. Additionally, the financing that these firms can source is likely to increase by $25 million within a year after project completion.

Bel Gà JSC. is the first to join this initiative. IFC will advise 54 poultry houses of three independent Vietnamese farms among Bel Ga’s downstream poultry farms to acquire the GlobalG.A.P. Certification.

It will establish a system for breeding activities for these farms, which will focus on hygiene and biosecurity, among others. “Food safety is becoming increasingly important in Vietnam. By implementing a food safety management system, we commit to producing safe, affordable and traceable poultry products,” said Kay De Vreese, General Director, Bel Gà JSC.

The project is implemented in partnership with the Slovak Republic. “We are very pleased to support IFC’s efforts to improve Vietnam’s food safety,” said H.E. Igor Pacolák, Ambassador of the Slovak Republic in Vietnam. “We believe the private sector has an important role to play in promoting sustainable and inclusive economic growth through this food safety initiative, which will benefit Vietnam’s businesses and consumers.”

“Modern food safety management systems make businesses more competitive,” said Kyle Kelhofer, IFC Country Manager for Vietnam, Cambodia, and Lao PDR. “It helps them with improved efficiency and cost savings and contributes to a stronger brand value, preparing them for both new and more sustainable market opportunities.”

About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY16, we delivered a record $19 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit www.ifc.org

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About Bel Gà JSC
Bel Gà JSC., a Vietnam-based poultry breeding company, was established in 2013 and has recently signed a 4 million USD loan with IFC to finance its growth in the Vietnamese poultry industry. The company is strongly supported by Belgabroed NV Belgium, the market leader in Belgium’s poultry industry, and De Heus Animal Nutrition BV The Netherlands, a top 15 player in the Global Feed industry. In 2016, Bel Gà became the first and only holder of a GLOBALG.A.P. Poultry IFA (Integrated Farm Assurance) version 5.0-2 Standard Certificate in Vietnam for broilers. For further information, visit www.belga.com.vn  

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Source: IFC Press Release

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