Hong Ha, a private Vietnamese company, yesterday inaugurated its newly built state of the art animal feed production line. The new feed mill will increase the company's feed production capacity to 400,000 tonnes per annum, making it the largest feed producer in VietNam.
The feed production line is located on a total area of 7ha, at the Dong Van Industrial Zone, Duy Tien District, in the northern Ha Nam Province.
The decision was made by the company last year to invest more than VND150 billion (USS$7.1 million) in the new feed plant in order to reach its current capacity, which is nearly ten times greater than the companies initial capacity of 48,000 tonnes when it started producing feed seven years ago.
Industrial analysts said that the inauguration marked a significant milestone for a local private firm to reach such a great capacity.
Minister of Industry and Trade, Vu Huy Hoang said that market share of the feed processing sector was mainly dominated by foreign-invested enterprises, which include the likes of CP Group of Thailand and Cargill of the US.
Therefore, authorities encouraged all economic sectors to tap into this sector. "It is essential to map out long-term plans to boost investment of the domestic firms, especially taking bold investments in plantations of corn, soybean and other raw materials" said Hoang.
Hoang confirmed that Vietnam would further encourage local enterprises to invest in the sector as Vietnam had advantages in this kind of production.
To ensure the supply of raw materials, the factory extended raw material collection, built storehouses near the plantation region and supported farmers to reach a high yield of materials. The company also sort to import high quality materials not available domestically in the country.
The company applied for the international certification ISO 9001-2008 in production and management. The company sold approximately 200,000 tonnes of feed and achieved a revenue of VND1.5 trillion (USD$71.4 million) last year, contributing almost VND7 billion to the state budget. With its good performance, Hong Ha is listed amongst the Top 500 largest private enterprises in Vietnam.