Heus harbours big plans for Vietnam

Located in Mang Thit district in the Mekong Delta province of Vinh Long and costing over $30 million, the new factory is the Dutch firm's second facility of this kind in the area.

The new facility, called Vinh Long 2, will produce feed for cattle, pigs, and poultry at a capacity of 250,000 tonnes a year in the first phase, thus helping increase De Heus Vietnam's total output to one million tonnes a year.

Vinh Long 2 is the first plant with a river port. Utilising the water ways, the logistics of incoming raw materials and outgoing finished products can be organized in a more efficient way between Vietnam, Cambodia, and the Mekong Delta region.

"The new facility is an important step in our ambition to contribute to the agricultural development of Vietnam,” said Gabor Fluit, De Heus Asia’s business group director.

Coinciding with the operation of its seventh plant, De Heus Vietnam announced that Vietnam had been selected as the official headquarters of of its Asia branch.

Operating in Vietnam for eight years now, De Heus has continued expanding its operations in the country to become one of the five biggest animal feed producers in the country.

The Vietnamese animal feed market has developed rapidly, with an average growth rate of 10-13 per cent a year. The animal feed market is expected to reach $10.55 billion by 2022.

According to a recent report released by the Ministry of Industry and Trade, foreign companies account for a smaller quantity but hold 60-65 per cent of the domestic market. Thai CP Vietnam Livestock Corporation and the US’ Cargill Vietnam Co., Ltd. hold the largest market share, with a combined 30 per cent.

Industry insiders said that, together with the increasing involvement of Vietnamese firms, the expansion of foreign players would make competition in the local animal feed market fiercer in the months to come.

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