In $10 billion agricultural market, VN giants make big plans

Vietnamese corporations have made great strides in the agricultural sector. Many deals have been successful and there are also ongoing deals that promise to create new "empires" in the region.

Chuyển động ngầm thị trường 10 tỷ USD, đại gia Việt những toan tính lớn

Representative of Dabaco Vietnam (DBC) Nguyen Nhu So revealed that several large corporations had proposed cooperating with DBC in the field of Livestock activities.

During the recent meeting with investors, DBC Chairman Nguyen Nhu So said that some domestic corporations had proposed cooperation with DBC in the field of livestock and wanted to hold 60% of DBC shares. DBC currently ranks first in the country for pig productivity, with more than 40,000 sows and a closed processing factory with 60,000-70,000 pigs, second only to the Thai group CP for pork in Vietnam.

In 2020, Dabaco earned revenue of over VND10 trillion (up nearly 40%), while after-tax profit increased nearly 5 times to VND1.4 trillion.

Vietnamese giants built agricultural empires

Meanwhile, Masan Group of billionaire Nguyen Dang Quang has invested heavily in meat processing and distribution in recent years, under the brand name Meat Deli. Recently, Masan Meatlife has expanded its operations into the chicken market through a 51% stake in 3F Viet Joint Stock Company.

By the end of 2020, total assets of Masan Meatlife increased by VND3.2 trillion to nearly VND18 trillion. Masan Meatlife has 3 directly-owned subsidiaries, and 17 indirectly-owned and associate companies. Its indirect-owned companies are all big names such as International Agricultural Nutrition Joint Stock Company (Anco), Vietnam - France Animal Feed Producing JSC (Proconco), or affiliated companies such as Vissan, where Masan Meatlife holds 24.9%.

Masan's meat segment grew strongly in 2020, thanks to brand expansion at 1,606 points of sale in both the South and North, in VinMart, VinMart +, supermarket chains Coopmart, BigC, Lotte, and Aeon.

 

The appearance of Vietnam's large meat processing enterprises is a good sign for Vietnam’s agriculture, which is weak in modern breeding, slaughtering and distribution.

More than a decade ago, Thai businesses came to Vietnam. Charoen Pokphand Group (C.P Group) of Thai billionaire Chearavanont stirred up Vietnam's agricultural market, from animal feed to pig slaughtering, chickens, eggs and processed products.

Masan made an impressive debut in the field of livestock and pork processing worth $10 billion. Masan Meat Life was also started and only a few months after launch, it achieved huge turnover. Its distribution network has also skyrocketed, partly thanks to the retail segment purchased from Vingroup.

In the past decade, many Vietnamese corporations have poured billions of US dollars into the agricultural sector with long-term calculations of building brands for Vietnamese agricultural products, and not thinking about making money in the short term.

Vinaseed (NSC) of Mr. Nguyen Duy Hung has recently been successful with some of the best rice brands in the world (such as ST25); and Mr. Doan Nguyen Duc (Boss Duc) - Chairman of Hoang Anh Gia Lai Group (HAG) has shaken hands with billionaire Tran Ba Duong of Thaco to build a new agricultural empire.

Boss Hien's T&T Group has also quietly entered the agricultural sector. T&T Group is a strategic shareholder of many State-owned enterprises, including a series of agricultural brands such as Vigecam, Vinafor, Vegetexco, Unimex and Vinafood.

V. Ha

Big businesses pour money into agriculture, expect no profit in short term

Big businesses pour money into agriculture, expect no profit in short term

Some billionaires have made big investment in agriculture with an ambitious plan to build a strong brand for Vietnam’s farm produce, but they do not expect to make a profit in the short term.

 
 

Other News

.
Coffee, vegetable industries agree on codes of conduct to encourage sustainability
Coffee, vegetable industries agree on codes of conduct to encourage sustainability
BUSINESSicon  17/11/2021 

As many as 42 enterprises from the coffee and fruit-vegetable industries have signed a pledge to show their commitment to support and implement the codes of conduct (CoCs) 

Pandemic will have long-lasting impact on business operations in Vietnam
Pandemic will have long-lasting impact on business operations in Vietnam
BUSINESSicon  17/11/2021 

Many factories, including about 200 contracted factories that make sportwear for Nike Corporation, resumed production in Vietnam earlier this month. 

Hoa Binh: attractive destination for investors
Hoa Binh: attractive destination for investors
BUSINESSicon  04/11/2021 

In an effort to attract investment, especially from the start-up community and young entrepreneurs, the authorities of Hoa Binh province have issued special incentive policies.

Vietnam to attract more investment in seaport development
Vietnam to attract more investment in seaport development
BUSINESSicon  17/11/2021 

Vietnam will need about 313 trillion VND (13.7 billion USD) to develop a modern seaport system between now and 2030, and the funding will mostly come from non-budget sources.

VIETNAM BUSINESS NEWS NOVEMBER 17
VIETNAM BUSINESS NEWS NOVEMBER 17
BUSINESSicon  17/11/2021 

Shares retreat on selling pressure, liquidity remains high

Vietnam Airlines officially receives FAA permit to run direct flights to US
Vietnam Airlines officially receives FAA permit to run direct flights to US
BUSINESSicon  16/11/2021 

National flag carrier Vietnam Airlines on November 16 officially received a permit from the US Federal Aviation Administration (FAA) to operate non-stop commercial flight service between Vietnam and the US.

Vietnam, Israel look toward bilateral FTA next year
Vietnam, Israel look toward bilateral FTA next year
BUSINESSicon  17/11/2021 

Vietnamese Minister of Industry and Trade Nguyen Hong Dien has hailed Israel as a promising market of Vietnam in West Asia.

Mekong Delta has some 2.5 million tons of rice left for export
Mekong Delta has some 2.5 million tons of rice left for export
BUSINESSicon  16/11/2021 

With the local rice demand taken into account, the Mekong Delta region has some 2.5 million tons of rice left in November and December that can be exported.

Vietnam-South Korea bilateral trade to hit $70 billion this year
Vietnam-South Korea bilateral trade to hit $70 billion this year
BUSINESSicon  17/11/2021 

The bilateral trade turnover between Vietnam and South Korea reached $63.4 billion in the first 10 months of 2021 and is likely to exceed $70 billion by the end of the year.

The ‘war of nerves’ between landlords and tenants
The ‘war of nerves’ between landlords and tenants
FEATUREicon  17/11/2021 

Many shop owners have had to suspend their business and give back their premises to landlords because of the impact of Covid-19. But, surprisingly, despite low demand, many landlords have still raised rental prices.

Economists warn of high inflation, low growth rate
Economists warn of high inflation, low growth rate
FEATUREicon  17/11/2021 

Seeking capital to help recover production and business is not easy but it’s not the biggest difficulty, experts say. The tougher task is driving money “to the right addresses at the right time”.

Green economy absorbs in green consumption behaviors
Green economy absorbs in green consumption behaviors
BUSINESSicon  16/11/2021 

Countries in the world have been making efforts to demonstrate their commitments to the climate change battle with the aim to minimize negative impacts on ecosystems and develop a green economy.

Retail revenue likely up 3-4% by year-end, compared to 2020
Retail revenue likely up 3-4% by year-end, compared to 2020
BUSINESSicon  16/11/2021 

Thanks to an expected upturn in retail demand between now and the end of the year, the total revenue for 2021 is expected to have grown by three to four per cent, when compared with the previous year. 

Several listed foreign firms report lower profits and losses in 2020
Several listed foreign firms report lower profits and losses in 2020
BUSINESSicon  16/11/2021 

The majority of foreign-invested enterprises listed on Vietnam's stock market either posted lower after-tax profits or losses in 2020 due to the impact of the COVID-19.

VIETNAM BUSINESS NEWS NOVEMBER 16
VIETNAM BUSINESS NEWS NOVEMBER 16
BUSINESSicon  16/11/2021 

Foreign paper hails Vietnam as economic success story

Vietnam Airlines’s additional shares to be officially traded from Nov. 19
Vietnam Airlines’s additional shares to be officially traded from Nov. 19
BUSINESSicon  15/11/2021 

The Ho Chi Minh Stock Exchange (HoSE) has announced the additional listing of nearly 800 million shares of Vietnam Airlines Corporation, coded HVN, from November 15.

E-commerce promotes Vietnam's digital economy
E-commerce promotes Vietnam's digital economy
BUSINESSicon  16/11/2021 

While tourism has been hit hard by Covid-19, e-commerce has become the driving force for the digital economy in Vietnam this year.

HCM City distribution chains ensure food supply
HCM City distribution chains ensure food supply
BUSINESSicon  16/11/2021 

Nearly 1,600 workers at a supermarket chain tested positive for coronavirus when the fourth Covid wave in HCM City reached its peak over the summer. One of them died.

Farm exports to EU must follow food hygiene requirements: experts
Farm exports to EU must follow food hygiene requirements: experts
BUSINESSicon  16/11/2021 

After one year of EVFTA (EU-Vietnam Free Trade Agreement) implementation, Vietnam’s farm exports to the EU have increased sharply.

Four ‘economic commanders’ at NA forum share their vision about stimulus package
Four ‘economic commanders’ at NA forum share their vision about stimulus package
FEATUREicon  15/11/2021 

All four ministers of economy-related fields were asked to answer inquiries at the last National Assembly session, a rare occurrence in Vietnam.

 
 
 
Leave your comment on an article

OR QUICK LOGIN