De Heus Group and Hung Nhon Group to sign a comprehensive strategic cooperation agreement in the period 2022 - 2030
On December 12, 2022, in Amsterdam, the Royal De Heus Group and Hung Nhon Group signed a Memorandum of Understanding (MoU) establishing comprehensive and strategic collaboration and partnership between the two companies.
The signing event was witnessed by Vietnamese Prime Minister Pham Minh Chinh. He was also joined by the Netherlands and Vietnam’s government leaders and officials of ministries and relevant organizations.
According to the agreement, De Heus and Hung Nhon are expecting to jointly formulate and develop agriculture-related projects such as: poultry and livestock breeding; development of input materials (corn, cassava) for animal feed production; development of high-tech agricultural production chains by adapting the Netherlands’s cooperative model in Vietnam.
In terms of high-quality cattle and poultry breed production for the Vietnamese market, both sides will develop a high-tech model of livestock value chain between 2022 and 2030. For this, Hung Nhon will invest in the construction of large-scale, modern cattle farms that meet international standards. De Heus will provide animal farms with high-quality, internationally-standardized pig and poultry breeds. By 2030, the capacity is expected to reach 7,500 Great Grand Parents (GGP) breeding swine in the Central Highlands, 30,000 commercial sows in the southeast, South Central, and Central Highlands; 58 million breeder chickens and 25 million broiler chickens in Tay Ninh. The annual revenue is anticipated to reach USD 2 billion.
On the decision to choose Hung Nhon as one of their key partner in Vietnam, Mr. Koen De Heus, Global General Director of De Heus, said that "Hung Nhon is a reputable and professional firm that specializes in cattle production in particular and agriculture in general. Hung Nhon’s business model is deemed suitable with their development strategy, business expansion plans and the objective to be a companion to livestock farmers and firms in Vietnam. De Heus anticipates collaborating with Hung Nhon to pursue these goals.”
Mr. Vu Manh Hung, Chairman of the Board of Directors and General Director of Hung Nhon Group shared that: “De Heus is the world's largest firm in agriculture with famous brands such as De Heus, Windmill, and Koudijs, among others. Consequently, working with De Heus is an honour for Hung Nhon. As a result of this partnership, Hung Nhon is able to obtain advanced breeding technologies from the Netherlands. From there, we can formulate large-scale agricultural projects in the future.”
De Heus and Hung Nhon, as part of their cooperation strategy, have developed a series of DHN high-tech agricultural complexes in three provinces of the Central Highlands, namely Lam Dong, Dak Lak and Gia Lai, before future replication to two provinces of Dak Nong and Kon Tum. The complexes are anticipated to adopt Industry 4.0 technologies in the livestock farming process, thus better managing farming operations, optimizing livestock performance, lowering product costs and improving economic efficiency.
By contributing individual strengths to this partnership, De Heus and Hung Nhon both aim to improve and modernize the livestock industry, ensuring that it is independently growing, competitive and productive to improve the livelihoods of Vietnamese farmers. Both sides will coordinate with each other in an organized and smooth manner to sustainably deliver our projects.