Big companies turn to agriculture to lift profits
Hoang Anh Gia Lai is the first big name to invest in agriculture, focusing on sugarcane, palm oil, maize and rubber in the past two years.
The company’s latest move is to spend 300 million USD on purchasing 230,000 cows to enter the milk and beef markets. Those decisions reaped dividends when sugarcane alone contributed 34 percent of the company’s total revenue in 2014. Maize and rubber contributed 14 percent.
The Him Lam Joint Stock Company recently announced their involvement in the agricultural sector, requesting approval from the Ministry of Agriculture and Rural Development to use of 1,000 hectares of land in the Central Highlands to grow trees.
If the plan is approved, the company intends to invest 20 trillion VND (929 million USD) into the production and processing of macadamia nuts.
The Hoa Phat Group Joint Stock Company recently announced the establishment of a company with a chartered capital of 300 billion VND (13.9 million USD) to invest in livestock, food processing and animal feed.
Vingroup, the nation’s biggest property developer, had a working session earlier this month with Quang Ninh province to discuss a plan to grow clean vegetables and fruit in the province.
