Project detail - Nafoods Tay Nguyen Joint Stock Company

Who is our customer?

NaFoods Group Joint Stock Company (NAF), listed on Ho Chi Minh Stock Exchange, is the leading processor and exporter of tropical fruit products in Vietnam. It is the #1 exporter of passion fruit products in Asia, exporting to more than 70 countries. NAF offers a diversified product portfolio which includes fruit juice, concentrate, puree, Individual Quick Freezing (IQF) products, fresh fruits, dried fruits and nuts from various tropical fruits produced in the region.

What is our funding objective?

Proposed is a USD 5mln senior secured capex loan (USD 2.5mln Building Prospects and USD 2.5mln FMO-A) to NaFoods Tay Nguyen Joint Stock Company (Borrower) – a subsidiary of NAF, to finance the group’s new capex expansion between FY25 and FY27, which includes expansion of its freezing and cold storage systems.

Why do we fund this investment?

NAF fits well into FMO’s strategy through its focus on local value creation, local employment creation and supporting economic growth. Currently NAF employs over 850 FTEs. An additional 50-100 FTEs are expected to be added with the expansion of new processing lines. NAF supports local value creation by exporting processed goods to food manufacturers and retailers, creating employment, generating local tax revenue and hard currency income for Vietnam. The transaction has a 100% Reducing Inequalities label. NAF’s inclusive business model involves close collaboration with farmers in some supply chains, improving livelihoods of participants. NAF directly sources from 1100 passion fruit farmers and 120 dragon fruit farmers, providing seedlings, technical support, quality control and guaranteeing offtake. In addition, the transaction has a 100% Green label. FMO financing will be used to upgrade and/or retrofit the R22 and R404 gas technology equipment, which directly contributes to Climate Action. In addition, all the new capex financed by FMO will use Ammonia coolant technology which is both more environmentally friendly and efficient. Long-term funding is limited from local banks in Vietnam, so FMO financing for capex projects clearly serves the additionality purpose.

What is the Environmental and Social categorization rationale?

NAF’s E&S risk category is B+. The Company buys and processes (i.e., sorting, cleaning, grading, cooling, chopping, packing) fruits and nuts to transform into edible food products and trade them using labor, energy, and water resources, and generating waste. The company also has passion fruit seedling production. Such activities have potential adverse environmental or social risks and/or impacts that are within and beyond the site boundaries, largely irreversible, and can be addressed through FMO’s proposed Environmental and Social Action Plan. The following IFC Performance Standards are applicable: PS 1 (organization, risk assessment, stakeholder engagement and grievance redress, contractor and supply chain management), PS 2 (working conditions and health & safety), PS 3 (Resource Efficiency, Pollution Prevention), PS 4 (Community Health Safety and Security), and PS 6 (Biodiversity conservation and sustainable management of living natural resources including supply chain and climate impact). No land acquisition is in relation to the investment; in the operational areas of NAF, there are ethnic minorities that fit the definition of IPs, but no impacts are expected due to NAF operations and no cultural heritage sites were identified. Based on that PS 5 (Land Acquisition and Involuntary Resettlement), PS 7 (Indigenous Peoples), and PS 8 (Cultural heritage) are regarded as not relevant.

More investments

Date	Total FMO financing
8/15/2025	USD 2.50 MLN