Industry insiders estimated that the investment capital to 25 major projects reached over VND27 trillion (US$1.18 billion) in the past few years.Pham Thi Huan, Director of Ba Huan Joint Stock Company, said her company invested more than VND1 trillion to the egg production chain, which helped the company’s turnover rise 15-20 percent yearly in the past few years.
VinaCapital recently invested US$32.5 million in Ba Huan Joint Stock Company
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VinaCapital Vietnam Opportunity Fund (VOF), the flagship fund of VinaCapital, recently invested $32.5 million in company to become its strategic investor. VOF may also invest a moderate amount of additional capital during the next twelve months as the company delivers on mutually agreed milestones.
Andy Ho, Managing Director of VOF, said: “Ba Huan has become one of the strongest fresh food brands in Vietnam. Food safety is a concern in the country, and Ba Huan’s growth is due to its reputation for producing high-quality and safe foods. It has a history of innovation, a management team with a clear vision for expansion, and a market that is rapidly growing. We look forward to working with Ba Huan’s management team to help implement new management practices, improve governance, and otherwise help take the company to the next stage of growth.”
Another major firm, Minh Hung Group, a member of Vietnam’s 500 biggest companies, recently also announced a project to build a HPP (High Pressure Processing) plant with total investment of VND500 billion in Long An Province which is scheduled to start operation in 2019.
Lam Dao Hung, Chairman of the group, said that the company will invest in warehouses and post-harvest preservation technologies to preserve goods at harvest time.
In early 2018, Hoa Phat Joint Stock Company also launched its chicken raising project which is expected to produce 20 million chicken eggs for sale to the local market this year. The company had also invested in an animal food processing plant.
In early 2017, Truong Hai Auto Company (THACO) brought into operation its over VND500 billion Thaco Agricultural Machinery plant which manufacture 18HP to 120 HP tractors, combined harvesters and other agricultural machinery. The company targets a 7 per cent market-share for the country’s tractor market in 2018, and a 26 per cent market share in 2026. It also has plans to manufacture other agricultural machinery for the country’s market and for exports to Laos, Cambodia, the Philippines, Myanmar and Indonesia.
Phung Duc Tien, deputy chairman of the National Assembly’s Science, Technology and Environment Council, said agriculture remains one of the key sectors of the country’s economy during the restructuring. Export value of the agricultural sector this year is expected to grow by 30 percent against last year to $6.1 billion.
“However, the country’s agricultural production remains tattered, indicated by some 80 million paddy fields, and nearly 10 million of farmer households,” said Tien.
He said post-harvest losses are very big, while infrastructure facilities such as warehouses and processing facilities remain restricted, causing a low added value.
To develop the country’s agricultural sector, it is necessary to have investment from big companies to promote production through the application of high technologies, he said.
