Hung Nhon Group and De Heus pour VND1,450 billion into Kon Tum

The signing ceremony took place at a conference on investment plan for an agricultural high-tech complex in Kon Tum Province held on November 29 by the Ministry of Agriculture and Rural Development (MARD) and the Kon Tum Province’s People's Committee in collaboration with De Heus and Hung Nhon Groups.

Super project with a scale of 200 ha, worth USD65 million

This continues to be a "super project" in the field of agriculture, with a total land-use area of ​​over 200 ha, including a number of high-tech livestock and poultry breeding complexes, factories, cattle and poultry slaughters of European standards, and hi-tech organic agricultural farming areas.

In addition, the two Groups also planned to develop areas supplying materials for a system of feed factories, breeding research, and labor training center in the field of high-tech agriculture. Total investment is expected about USD65 million (equivalent to VND1,450 billion).

In particular, the plan includes the Kon Tum High Productivity Pig Farm Project with a capacity to raise 2,500 great-grandparent and grandparent pigs that are carefully selected to ensure good genetic resources. After the project is completed and put into operation, about 24,000 broodstock and gilts will annually be supplied to the market.

The entire breeding process is strictly controlled in compliance with the standards of food sources, vaccinations, and technical manipulations in the direction to establish disease-free areas.

Once completed, together with the DHN agricultural high-tech application complex in Dak Lak and Gia Lai, the Kon Tum high-yield piglet farm project will become a quick and reliable source of high-quality pig breeds for the Central Highlands, Southeast and Central Coast regions.

At the same time, the project will create jobs for 250-300 local ethnic people in Kon Tum.

Hung Nhon Group chooses Kon Tum as a “stopover”

 Mr. Vu Manh Hung - Chairman of the Board of Directors of Hung Nhon Group said: "Hung Nhon does not choose land, but first chooses people. With a warm welcome from the leaders of Kon Tum province in a dignified atmosphere, we reciprocate with the efforts of the two groups. Surely, the project will be successful.”

Chairman of Kon Tum Provincial People's Committee Le Ngoc Tuan expressed his happiness when De Heus Royal Group and Hung Nhon Group choose the province as a "stopover". As Kon Tum has a total agricultural land area of ​​more than 300,000 hectares and its population is only 555,000 people, the land fund for agricultural development is relatively large.

Mr. Le Ngoc Tuan demonstrated: "On average, each ha of land in Kon Tum only brings in value about VND50-100 million/year, while in Lam Dong it is about VND500-600 million/year. Therefore, we expect De Heus and Hung Nhon Groups to come to Kon Tum as quickly as possible. The province will create all conditions for businesses to learn and deploy investment activities in the high-tech agricultural complex.”

Agricultural Counselor of the Netherlands Embassy in Vietnam, Mr. Willem Schoustr, said resources themselves are limited. Therefore, he said, the exploitation might ensure sustainability. And the cooperation between De Heus and Hung Nhon Groups is an example of how to invest in developing a sustainable livestock value chain, he added.

From the Netherlands’ experience in agricultural development, Mr. Willem Schoustr said that it is necessary to come up with a long-term vision, thereby deciding on actions to be taken immediately.

De Heus is a leading agricultural developer in the Netherlands with more than 100 years of experience. It comes to Vietnam to develop a sustainable livestock value chain, ensure biosecurity, and protect the environment by building disease-free breeding areas.

With a vision and orientation from now to 2030, De Heus and Hung Nhon Group will continue to cooperate in expanding and developing a network of large-scale and safe pig breeding projects, safe- from-epidemic areas in all provinces of the Central Highlands.

With investment projects in Dak Lak, Lam Dong, Gia Lai, Kon Tum, Dak Nong, Tay Ninh, Southeast and Southwest regions, the two Groups’ joint venture project in pig breeding has set a goal of about 10,000 great-grandparent pigs (equivalent to 80,000 gilts per year, the capacity of sows of 200,000 heads and 6 million pigs per year) by 2030. Total revenue is expected to reach USD2 billion, equivalent to VND46,500 billion per year.

Typical business cooperation between Vietnam and Netherlands

Mr. Gabor Fluit, Vice President of European Business Association in Vietnam, General Director of De Heus Asia Group, said that recently, De Heus Group has acquired the entire animal feed factory of Masan Group. De Heus's orientation is to develop toward the livestock product value chain, in which Hung Nhon Group owns large livestock farms while De Heus provides pig and chicken breeds along with a processing system.

Also according to Mr. Gabor Fluid, animal feed factories in Vietnam need about 20 million tons of materials per year of which 60-70% depends on imported sources. Therefore, Vietnam has potentials to develop raw material areas of cassava (cassava) and corn-these are two very important ingredients in animal nutrition. In the coming time, De Heus Group will coordinate with local Departments of Agriculture and Rural Development to build a chain of links, creating input materials for the Group's factories.

Mr. Duong Tat Thang, Director of the Department of Livestock Production (MARD) affirmed: “High-tech application in livestock is a must-do trend in the future. 

Emphasizing cooperation opportunities between Vietnamese and Dutch businesses, Mr. Pham Ngoc Mau, Deputy Director of the International Cooperation Department (MARD), said that for the joint venture to implement the project, Hung Nhon Group with over 20 years of experience in agriculture, has grown tremendously, becoming a multi-industrial corporation with a chain system of 15 member companies.

De Heus Group, with 13 years in Vietnam, has risen to the top in aquafeed production with 22 factories, surpassing CP company after acquiring Massan's feed mills.

The two Groups have been cooperating in implementing a number of successful investment projects on raising pigs, chickens and cows in some localities such as Binh Duong, Binh Phuoc, Gia Lai and Dak Lak.

"This joint venture is now emerging as a typical business cooperation model in the Vietnam-Netherlands relationship," said Mr. Mau.