Local animal feed companies are unable to compete with foreign rivals on the local animal feed market, said experts.
TheVietnam Animal Feed Association said Vietnam has about 58 enterprisesproducing and processing animal feed with 200 factories, 50 of whichwith foreign investments account for 60 percent of the local marketshare, reported the Tien Phong (The Vanguard) newspaper.
Thecompanies that dominate the local market include CP, Cargill, Japfa,Grobest and New Hope from the US, Thailand and China, the associationsaid. Some of them have expanded their production in Vietnam.
Forexample, Cargill has just completed a 20-million-USD expansion projectof its factory in Binh Dinh province, one of its eight factoriesproducing animal feed in Vietnam.
With this project, the grouphas increased its capacity to 1.4 million tonnes of animal feed eachyear in Vietnam and its total investment in the country to 117 millionUSD. At present, Cargill controls 7 to 8 percent of the local animalfeed market, the company said.
The US Gold Coin group has justbegun operations of its Gold Coin Hai Duong animal feed factory with acapital of 260 billion VND (12.38 million USD), including a number ofits animal feed production factories in three units in Vietnam.
Lastyear, CP of Thailand started construction of its animal feed productionfactory in Binh Dinh province. Kyodo Sojitz of Japan invested 24million USD to build a factory in Long An province.
Greenfeed started operating its third and fourth factories that produced animal feed, in Binh Dinh and Hung Yen provinces.
TheMinistry of Agriculture and Rural Development said Vietnam needs 18 to20 million tonnes of animal feed at present and 25 million in 2020,reported vnexpress.net, an online newspaper. The local animal feedmarket has total revenue of 6 billion USD every year.
The localanimal feed industry has supplied 15.5 million tonnes per year with agrowth rate of 13 to 15 percent, becoming the largest animal feedproducer in the Southeast Asia region.
Meanwhile, there are afew well-known domestic animal feed firms, including Proconco, Vina,Dabaco and Lai Thieu, with a total output of 300,000-400,000 tonnes peryear, the association said.
Almost all Vietnamese firms are small and medium enterprises and often lack capital for production, it said.
PhamDuc Binh, General Director of Thanh Binh Company, said the market shareof Vietnamese firms on the domestic animal feed market has reducedbecause management of domestic firms is weak while foreign firms haveattractive trade promotion activities to make new customers.
LeQuang Thanh, Chairman of Thai Duong Animal Feed Joint Stock Company,said that since Vietnamese firms cannot compete with their foreignrivals, they compete with each other for a slice of the market share.That action has made local firms weaker.
Nguyen Van Anh, directorof an enterprise specialising in production of animal feed in Dong Naiprovince, said Vietnamese animal feed producers are weaker on the localmarket, either because they lack capital for production or get loanswith high interest rates.
Foreign firms, meanwhile, get fundingfrom their parent companies for building factories and capital with softinterest rates from foreign banks for production, Anh said.
Therefore, local firms should cooperate with each other to increase their market share in the future, he said.-VNA
TheVietnam Animal Feed Association said Vietnam has about 58 enterprisesproducing and processing animal feed with 200 factories, 50 of whichwith foreign investments account for 60 percent of the local marketshare, reported the Tien Phong (The Vanguard) newspaper.
Thecompanies that dominate the local market include CP, Cargill, Japfa,Grobest and New Hope from the US, Thailand and China, the associationsaid. Some of them have expanded their production in Vietnam.
Forexample, Cargill has just completed a 20-million-USD expansion projectof its factory in Binh Dinh province, one of its eight factoriesproducing animal feed in Vietnam.
With this project, the grouphas increased its capacity to 1.4 million tonnes of animal feed eachyear in Vietnam and its total investment in the country to 117 millionUSD. At present, Cargill controls 7 to 8 percent of the local animalfeed market, the company said.
The US Gold Coin group has justbegun operations of its Gold Coin Hai Duong animal feed factory with acapital of 260 billion VND (12.38 million USD), including a number ofits animal feed production factories in three units in Vietnam.
Lastyear, CP of Thailand started construction of its animal feed productionfactory in Binh Dinh province. Kyodo Sojitz of Japan invested 24million USD to build a factory in Long An province.
Greenfeed started operating its third and fourth factories that produced animal feed, in Binh Dinh and Hung Yen provinces.
TheMinistry of Agriculture and Rural Development said Vietnam needs 18 to20 million tonnes of animal feed at present and 25 million in 2020,reported vnexpress.net, an online newspaper. The local animal feedmarket has total revenue of 6 billion USD every year.
The localanimal feed industry has supplied 15.5 million tonnes per year with agrowth rate of 13 to 15 percent, becoming the largest animal feedproducer in the Southeast Asia region.
Meanwhile, there are afew well-known domestic animal feed firms, including Proconco, Vina,Dabaco and Lai Thieu, with a total output of 300,000-400,000 tonnes peryear, the association said.
Almost all Vietnamese firms are small and medium enterprises and often lack capital for production, it said.
PhamDuc Binh, General Director of Thanh Binh Company, said the market shareof Vietnamese firms on the domestic animal feed market has reducedbecause management of domestic firms is weak while foreign firms haveattractive trade promotion activities to make new customers.
LeQuang Thanh, Chairman of Thai Duong Animal Feed Joint Stock Company,said that since Vietnamese firms cannot compete with their foreignrivals, they compete with each other for a slice of the market share.That action has made local firms weaker.
Nguyen Van Anh, directorof an enterprise specialising in production of animal feed in Dong Naiprovince, said Vietnamese animal feed producers are weaker on the localmarket, either because they lack capital for production or get loanswith high interest rates.
Foreign firms, meanwhile, get fundingfrom their parent companies for building factories and capital with softinterest rates from foreign banks for production, Anh said.
Therefore, local firms should cooperate with each other to increase their market share in the future, he said.-VNA
