Foreign investments takeover Vietnam feed industry
Blog Time:
12 04 2012
http://www.allaboutfeed.net/news/foreign-investments-takeover-vietnam-feed-industry-13084.html
Foreign invested firms have been investing into and expanding Vietnamese animal feed production, according to the Vietnam Animal Feed Association. Vietnam currently has 59 foreign-invested firms and joint ventures which hold 70% of the domestic animal (compound) feed market share while 180 local firms retain the remaining 30%. Local firms faced the risk of losing their market share to foreign rivals due to increased foreign investment into the feed industry. US-invested Cargill Vietnam in March added two factories to its nine existing feed production facilities, increasing total capacity to 1 million tonnes per year, accounting for 10% of the local market. Last year, Charoen Pokphand, a Thai animal feed producer operating in Vietnam, announced it would build six additional factories by 2014. Also Chinese firm New Hope confirmed it would construct six more feed plants. The association said foreign investment increase in animal feed production was due to high domestic demand as well as advantages in capital and tax during the production process. Meanwhile, local animal feed producers have faced many challenges, including high interest rates on loans and low competitiveness.
Foreign invested firms have been investing into and expanding Vietnamese animal feed production, according to the Vietnam Animal Feed Association. Vietnam currently has 59 foreign-invested firms and joint ventures which hold 70% of the domestic animal (compound) feed market share while 180 local firms retain the remaining 30%. Local firms faced the risk of losing their market share to foreign rivals due to increased foreign investment into the feed industry. US-invested Cargill Vietnam in March added two factories to its nine existing feed production facilities, increasing total capacity to 1 million tonnes per year, accounting for 10% of the local market. Last year, Charoen Pokphand, a Thai animal feed producer operating in Vietnam, announced it would build six additional factories by 2014. Also Chinese firm New Hope confirmed it would construct six more feed plants. The association said foreign investment increase in animal feed production was due to high domestic demand as well as advantages in capital and tax during the production process. Meanwhile, local animal feed producers have faced many challenges, including high interest rates on loans and low competitiveness.
The Vietnamese feed industry presents many opportunities for feed additive and animal health suppliers, reported Michael Boddington of Asian agribusiness consulting, a research firm that has undertaken many research projects on the Vietnam feed industry..
http://cn.linkedin.com/pub/michael-boddington/4/174/a80
http://cn.linkedin.com/pub/michael-boddington/4/174/a80