DFCD backs climate coffee
This marks the second business to complete the full DFCD cycle—from origination and technical assistance by SNV, to financing by FMO.
Ho Chi Minh City, 4 April 2025 – A signing ceremony today marks a significant milestone for climate-resilient agriculture in Vietnam, as Phuc Sinh Corporation officially secures investment from FMO, the Dutch Entrepreneurial Development Bank, following origination support by SNV.
Phuc Sinh, a leading exporter and processor of Rainforest Alliance-certified coffee, is committed to climate adaptation in Vietnam’s highly vulnerable coffee-growing regions. With DFCD support, the company aims to nearly double the area under RA-certified cultivation to over 7,000 hectares by 2028, empowering thousands of smallholder farmers to adopt sustainable, deforestation-free, and climate-smart farming practices.
Depicted: Phuc Sinh Founder and CEO, Phan Minh Thong; and Ammarens Bruggenkamp, FMO Manager Agribusiness, Food and Water Asia.
FMO investment to scale sustainable coffee processing
FMO’s USD 15 million financing package includes:
A USD 12 million DFCD Land Use Facility term loan for the construction of a new coffee processing factory in Dak Nong.
A USD 3 million Building Prospects facility for working capital needs.
This investment will strengthen Phuc Sinh’s processing capacity near Vietnam’s key coffee-producing regions while supporting sustainable and traceable supply chains. Expected climate and social impacts include:
Avoiding 3,825 tonnes of CO2e emissions annually.
Managing 3,300 hectares of farmland sustainably.
Benefiting 10,000 individuals, including nearly 3,800 from vulnerable groups.
Empowering close to 3,000 individuals with greater decision-making power.
Promoting biodiversity across operational areas.
De-risking climate-smart investments: SNV’s role through the DFCD
This marks the second business to complete the full Dutch Fund for Climate and Development (DFCD) cycle—from origination and technical assistance by SNV through DFCD’s Origination Facility, to financing by FMO.
Through the DFCD’s Origination Facility, SNV has supported Phuc Sinh with a EUR 367,500 grant and comprehensive technical assistance to de-risk the project and prepare a robust investment proposal for FMO—ensuring the expected impacts are soundly assessed. Support focused on four key areas:
Evaluating new regions for expanding RA-certified coffee cultivation.
Scaling Phuc Sinh’s farmer training programmes.
Supporting operations in new sourcing areas.
Strengthening the company’s environmental and social governance through improved management systems and planning.
"This partnership exemplifies how strategic investments can drive meaningful climate action and create lasting positive impacts. By supporting Phuc Sinh's expansion of Rainforest Alliance-certified coffee cultivation, we aim to support smallholder farmers and promote sustainable practices that benefit both the environment and local communities," said Aart Mulder, Principal Investment Officer
“Businesses like Phuc Sinh can serve as role models for climate adaptation,” said Alex Downs, Business and Investment Expert at SNV-DFCD. “There’s a financing gap between business needs and available funding for scaling. The Origination Facility helps bridge this gap by providing the support needed to attract investment.”
“With DFCD’s support, we aspire to become a leading company in certified deforestation-free coffee,” said Mr Tran Cong Vinh, CEO of Phuc Sinh. “Our goal is to scale our business sustainably, addressing climate adaptation challenges while considering the needs of vulnerable local communities.”
About the DFCD
The Dutch Fund for Climate and Development (DFCD) is a climate resilience fund dedicated to supporting climate adaptation and mitigation projects that benefit vulnerable communities and landscapes. It is funded by the Dutch government and managed by a pioneering consortium of Climate Fund Managers (CFM), Worldwide Fund for Nature Netherlands (WWF-NL), and SNV, led by the Dutch Entrepreneurial Development Bank (FMO). www.thedfcd.com
About FMO
FMO is the Dutch entrepreneurial development bank, investing in ambitious projects in developing countries that promote inclusive and sustainable private sector growth. With a strong focus on renewable energy, financial inclusion, and agribusiness, FMO aims to improve livelihoods and safeguard ecosystems through targeted finance. www.fmo.nl
About SNV
SNV is a global development partner deeply rooted in the African and Asian countries where it operates. With 60 years of experience and a team of approximately 1,600 people, SNV strengthens capacities and catalyses partnerships that transform agri-food, energy, and water systems—working to ensure sustainable and more equitable lives for all. www.snv.org
About Phuc Sinh
Established in 2001, Phuc Sinh Corporation has grown into a leading coffee and pepper exporter and processor in Vietnam. Originally a B2B trader, the company is now transitioning into an integrated platform offering value-added products for both B2B and B2C markets. Phuc Sinh has been processing coffee since 2009 and operates an Arabica processing plant in Son La, reinforcing its role as an innovator in Vietnam’s agricultural value chain. www.phucsinh.com
For more information, please contact zzbogar@snv.org.