AgriS, DEG strengthen partnership for sustainable agriculture

On October 31, AgriS and DEG – a European development finance institution under the KfW Group – signed a new strategic financing agreement, reaffirming their long-term cooperation in transforming Vietnam’s agricultural sector. The deal marks six years of successful collaboration between the two sides in promoting sustainable practices and supporting progress toward carbon neutrality, with AgriS set to receive a long-term investment from DEG.

The capital will significantly strengthen AgriS’s financial capacity to achieve its ambitious net-zero goal through key investments in facility upgrades, technical support, working capital supplementation, and equipment maintenance. The deal solidifies DEG's confidence in AgriS as a pioneer in high-tech and sustainable agriculture within Vietnam and the region.

Alongside the investment, AgriS will implement action plans towards sustainable growth through initiatives such as applying precision agriculture at demo farms, utilising sugarcane by-products to promote a circular economy, enhancing energy efficiency management, and reducing greenhouse gas emissions. At the same time, DEG will deploy its in-house climate experts and leverage its global network of consultants to support AgriS in achieving these goals.

Thai Van Chuyen, CEO of AgriS, said, "Rooted in a shared vision for a high-tech, green, and sustainable agriculture, AgriS and DEG established their partnership in 2019. Over the past six years, DEG has served as a financial investor as well as a strategic partner accompanying AgriS on its comprehensive transformation journey aligned with international environmental, social, and governance standards (ESG) and practices."

Since DEG’s initial strategic investment of $28 million in 2019, the two parties have collaborated on numerous key initiatives to promote the development of a green and sustainable agriculture sector through non-reimbursable funding that AgriS has received from DEG.

One of the flagship projects is organic fertiliser production. Specifically, the Attapeu Organic Fertiliser Plant in Laos, a collaboration with AgriS Agriculture Development JSC, embodies the circular philosophy. It utilises sugar industry residues to produce BIOTANI organic fertiliser. Operational since 2021 with an annual capacity of 34,000 tonnes (expected to reach 70,000 tonnes within five years), the project contributes to soil restoration, emission reduction, and the creation of sustainable local livelihoods.

Another undertaking is biological pest control. Accordingly, AgriS has successfully implemented the use of Trichogramma as a natural enemy for pest control. This environmentally friendly initiative, which received 50 per cent funding from DEG, helps reduce pesticide use and supports organic farming practices. Applied across 7,000 hectares of sugarcane annually since 2021, the model has maintained pest infestation rates at a stable 3–4 per cent, with zero recorded outbreaks. The company aims to expand this initiative to 70,000ha by 2035.

To support its net-zero ambitions, AgriS has standardised its environmental management and occupational safety systems to meet international benchmarks, including ISO 14001, ISO 45001, and Bonsucro certification across several sites.

With 50 per cent financial support from DEG, AgriS conducted assessments and enhanced parts of its ESG management systems. In 2023, AgriS became the first enterprise in Vietnam to obtain Bonsucro certification (for 99ha in Tay Ninh).

Gunnar Stork, senior director of Industries & Services, Private Equity and Venture Capital at DEG, said, “This signing represents more than a financial agreement – it reflects a shared vision for sustainable growth, innovation, and climate responsibility. Through this strategic investment, we are proud to support AgriS in strengthening its working capital and expanding its operations as it advances its climate ambitions.”

Building on a strong six-year partnership, AgriS and DEG continue to explore new opportunities to enhance business efficiency through circular and sustainable agricultural models, contributing to the shared goal of achieving net-zero emissions.

AgriS presented its solutions for agricultural modernisation and digitalisation to Prime Minister Pham Minh Chinh at the inauguration of the National Data Centre on August 18.

AgriS, Vietnam's leading high-tech agricultural enterprise, has signed an MoU with ITOCHU, one of Japan's largest general trading and investment corporations.

Dang Huynh Uc My (Omi Dang), chairlady of the board of directors at AgriS, has been named on Fortune's Most Powerful Women in Asia 2025 list.