Foreign firms are showing huge interest in Vietnam’s lucrative livestockproduction sector, the Vietnam Investment Review (VIR) reported.
Inearly August 2014, the Philippines’ Pilmico International Pte Ltdsigned the papers on the purchase of 70 percent of the local firm VinhHoan 1 Feed JSC, under Vinh Hoan Corp, one of Vietnam’s leading aquaticproduct exporters. The remaining 30 percent is to be purchased byPilmico over the next five years at an agreed price. The transactionvalue totalled 28 million USD.
In June, an agreement on the dealwas inked, which was aimed at empowering Pilmico to expand its corefeeds business into the Vietnamese market.
Earlier this month,Japan’s Maguchi group representatives worked with the Binh Dinhprovincial People’s Committee for cooperation opportunities in producingaquatic products in the province for export to Japan.
“We thinkagriculture is a sector that has great potential. We have seen otherinvestors turn their eye to this area and we have also seen thatVietnamese companies not only need foreign capital, but also foreigninvestors who bring to the table experience and strength that can helptheir businesses grow. They need expertise and access to internationalmarkets,” Nguyen Thuy Hang, special counsel with international law firmBaker & McKenzie, was quoted by VIR as saying.
In July 2013Baker & McKenzie advised Minh Phu-Hau Giang Seafood ProcessingCompany (MPHG) on a 19 million USD acquisition by Japan’s Mitsui &Co, which purchased a 30 percent stake of the firm.
Animalvaccine and pharmaceutical company Medion, based in Indonesia’s Bandungcity, inked a cooperation deal last month with Vietnamese animal vaccinemaker Greenvet to produce animal medicines in Vietnam.
In lateJune 2014, Dutch-backed Rabobank clinched a memorandum of understandingon food and agribusiness (F&A) cooperation with Vietnam’s Sacombank,with the former to provide the latter with F&A expertise andknow-how.
“Vietnam’s huge raw material potential and attractiveinvestment policies are attracting many foreign husbandry firms thatmake animal medicines, feeds, process meat or raise poultry and cattle,”said Hoang Thanh Van, head of the Ministry of Agriculture and RuralDevelopment’s Livestock Production Department.
SooksuntJiumjaiswanglerg, General Director of C.P. Vietnam LivestockCorporation, said the Thai group would continue building more foodprocessing factories in Vietnam, in addition to its existing eightanimal and aquatic feed plants with the total capacity 3.8 milliontonnes, and one corn semi-processing plant.
“We will also expandour products out to provinces, not only urban areas. We will also boostcooperation with local farmers,” the VIR cited him as saying.
TheUS’ Cargill in May 2014 completed its 20 million USD expansion of ananimal feed mill in the central province of Binh Dinh, raising themill’s annual capacity four fold, from 60,000 to 240,000 tonnes.
Asone of Cargill’s eight compound feed mills in Vietnam, this expansionbrings the company’s total investment in Vietnam’s livestock andaquaculture industry to over 110 million USD over 10 years, with thetotal compound feed capacity of 1.4 million tonnes. In 2012 Cargillcommitted to building more animal feed mills in Vietnam, doubling itsfeed capacity to 1.5 million tonnes per year by 2015.
Australian-Vietnamesejoint venture Ausfeed, Indonesia’s Japfa Hypor Genetics and China’s NewHope are also operating well in Vietnam with their own plants. China’sTongwei Hoa Binh was licensed in May 2014 to build an animal feed plantworth 10 million USD in the province. The plant is expected to go intoservice by late 2015 with production set at 200,000 tonnes.
Dutchanimal feed maker De Heus is building a 30 million USD factory in thenorthern province of Vinh Phuc, its fifth facility in the country. Thecompany’s spokesperson Nguyen Thai Van confirmed that the firm plannedto build two more plants by late 2015.
Meanwhile, Chinese animalfeed producer Tequhope plans to set up 12 more animal feed plants inVietnam by 2020. The company currently has a factory in the northernprovince of Bac Giang.
Malaysia’s UBM Asia, a leading exhibitionorganiser, is cooperating with the Livestock Production Department toorganise Vietstock 2014 Expo and Forum, Vietnam’s number one feed andlivestock sector event. It is planned for October 15-17 in Ho Chi MinhCity.
The event will be joined by a record number of 250 plusforeign husbandry firms from over 30 nations around the world, includingthe US, the UK, the Netherlands, Singapore, France and China, reportedthe department.-VNA
Inearly August 2014, the Philippines’ Pilmico International Pte Ltdsigned the papers on the purchase of 70 percent of the local firm VinhHoan 1 Feed JSC, under Vinh Hoan Corp, one of Vietnam’s leading aquaticproduct exporters. The remaining 30 percent is to be purchased byPilmico over the next five years at an agreed price. The transactionvalue totalled 28 million USD.
In June, an agreement on the dealwas inked, which was aimed at empowering Pilmico to expand its corefeeds business into the Vietnamese market.
Earlier this month,Japan’s Maguchi group representatives worked with the Binh Dinhprovincial People’s Committee for cooperation opportunities in producingaquatic products in the province for export to Japan.
“We thinkagriculture is a sector that has great potential. We have seen otherinvestors turn their eye to this area and we have also seen thatVietnamese companies not only need foreign capital, but also foreigninvestors who bring to the table experience and strength that can helptheir businesses grow. They need expertise and access to internationalmarkets,” Nguyen Thuy Hang, special counsel with international law firmBaker & McKenzie, was quoted by VIR as saying.
In July 2013Baker & McKenzie advised Minh Phu-Hau Giang Seafood ProcessingCompany (MPHG) on a 19 million USD acquisition by Japan’s Mitsui &Co, which purchased a 30 percent stake of the firm.
Animalvaccine and pharmaceutical company Medion, based in Indonesia’s Bandungcity, inked a cooperation deal last month with Vietnamese animal vaccinemaker Greenvet to produce animal medicines in Vietnam.
In lateJune 2014, Dutch-backed Rabobank clinched a memorandum of understandingon food and agribusiness (F&A) cooperation with Vietnam’s Sacombank,with the former to provide the latter with F&A expertise andknow-how.
“Vietnam’s huge raw material potential and attractiveinvestment policies are attracting many foreign husbandry firms thatmake animal medicines, feeds, process meat or raise poultry and cattle,”said Hoang Thanh Van, head of the Ministry of Agriculture and RuralDevelopment’s Livestock Production Department.
SooksuntJiumjaiswanglerg, General Director of C.P. Vietnam LivestockCorporation, said the Thai group would continue building more foodprocessing factories in Vietnam, in addition to its existing eightanimal and aquatic feed plants with the total capacity 3.8 milliontonnes, and one corn semi-processing plant.
“We will also expandour products out to provinces, not only urban areas. We will also boostcooperation with local farmers,” the VIR cited him as saying.
TheUS’ Cargill in May 2014 completed its 20 million USD expansion of ananimal feed mill in the central province of Binh Dinh, raising themill’s annual capacity four fold, from 60,000 to 240,000 tonnes.
Asone of Cargill’s eight compound feed mills in Vietnam, this expansionbrings the company’s total investment in Vietnam’s livestock andaquaculture industry to over 110 million USD over 10 years, with thetotal compound feed capacity of 1.4 million tonnes. In 2012 Cargillcommitted to building more animal feed mills in Vietnam, doubling itsfeed capacity to 1.5 million tonnes per year by 2015.
Australian-Vietnamesejoint venture Ausfeed, Indonesia’s Japfa Hypor Genetics and China’s NewHope are also operating well in Vietnam with their own plants. China’sTongwei Hoa Binh was licensed in May 2014 to build an animal feed plantworth 10 million USD in the province. The plant is expected to go intoservice by late 2015 with production set at 200,000 tonnes.
Dutchanimal feed maker De Heus is building a 30 million USD factory in thenorthern province of Vinh Phuc, its fifth facility in the country. Thecompany’s spokesperson Nguyen Thai Van confirmed that the firm plannedto build two more plants by late 2015.
Meanwhile, Chinese animalfeed producer Tequhope plans to set up 12 more animal feed plants inVietnam by 2020. The company currently has a factory in the northernprovince of Bac Giang.
Malaysia’s UBM Asia, a leading exhibitionorganiser, is cooperating with the Livestock Production Department toorganise Vietstock 2014 Expo and Forum, Vietnam’s number one feed andlivestock sector event. It is planned for October 15-17 in Ho Chi MinhCity.
The event will be joined by a record number of 250 plusforeign husbandry firms from over 30 nations around the world, includingthe US, the UK, the Netherlands, Singapore, France and China, reportedthe department.-VNA
