While animal husbandry enterprises have made moves to increase investment, expand production scale, the food businesses also bravely set business goals, profits increased sharply in 2020.
Food raises business targets
According to forecasts made recently by the Vietnam High-quality Business Association, in the last 6 months, the purchasing behavior of Vietnamese people has not changed much compared to the epidemic period. To be more specific, food, health care products, chemicals, detergents, and personal hygiene, housing will still be top priorities shortly. The growth of food in particular, according to the Ho Chi Minh City Food Association forecast, will be about 10% in the coming months.
Many trillion animal husbandry projects have been announced
Along with the positive growth of the food business, many recent animal husbandry projects worth trillions have been announced across Vietnam. This is due to the forecast of many businesses in the industry about the possibility that the world will lack food due to disease. “After the Covid-19, there will be many good opportunities for the livestock industry because the world is in shortage of food” – Mr. Sawang Chanprasert – Deputy General Director of CPV Joint Stock Company – Food VN – shared with Industry and Trade Journalist.
According to Mr. Sawang Chanprasert, this enterprise is implementing a closed chicken export project with an investment budget of up to USD 200 million and a capacity of 50 million birds a year in Binh Phuoc province. Currently, the project implementation process is speeding up the completion process to quickly put into operation.
Besides, it is expected that by the end of 2020, C.P. Livestock Joint Stock Company Vietnam will also build a slaughter and pork processing factory with an area of nearly 6 hectares, a capacity of 2,000 heads/day in Phu Nghia Industrial Park, Chuong My, Hanoi, with a total investment of nearly 450 billion dongs.
Realizing the potential market, at the end of June 2020, two investors, De Heus Group (Netherlands) and Hung Nhon Group proposed Gia Lai People’s Committee to invest in the project of the technology-applied breeding area – Gia Lai high DHN. It is expected that this project will have a scale of about 100ha and a total investment of about 1,030 billion VND, and it is launched to produce agricultural products in a closed chain.
Another major project to mention is that in May 2020, Hung Vuong Joint Stock Company (HVG) and Thadi Agricultural Production, Processing, and Distribution Joint Stock Company (belonging to Truong Hai Automobile Company – Thaco) just started to invest in agriculture, including raising pigs. Accordingly, Thadi invested 65% in the Thadi – HVG joint venture in the production of breeding pigs (parents) with a scale of 45,000 pigs in 2020 with a total investment of VND 2,000 billion, implemented in An Giang and Bình Định.
It can be seen that while many other businesses are struggling, investing in animal feed and livestock is still a highlighted point, helping many businesses stand firm in the epidemic.
Source: Công Thương News