Agriculture Investment by FDI Enterprises

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*Breeding attracts foreign investors

Since 1995, FDI enterprises have started to invest in the field of animal feed production. After that, the companies gradually expanded into the breeding and animal husbandry business in the form of subleasing the breeding facilities or signing contracts with outsourced farm owners. Over the past 25 years, FDI enterprises have put capital into agriculture, helping Dong Nai's livestock industry far beyond many provinces and become the animal husbandry "capital" of the whole country, at the same time, the province is also the largest breeding and breeding place in the country.

Mr. Kieu Minh Luc, Deputy General Director of CP Vietnam Livestock Joint Stock Company (100% Thai capital) in Bien Hoa Industrial Zone 2 (Bien Hoa City) said: “CP Group is an FDI enterprise investing in agriculture in Dong Nai quite early. At first, the company produced animal feed, later expanded to produce breeds, livestock, technology transfer to farmers. CP investment has contributed to the development of the province's livestock industry.”

Dong Nai currently attracts more than 30 FDI enterprises to pour capital into producing animal feed, breeding animals, raising pigs, chickens and aquatic products. Mr. Yamasaki Fumiaki, Production Director of KOYU & UNITEK CO., LTD. in Loteco Industrial Park (Bien Hoa City) said that the company is the first enterprise in Vietnam to export chicken meat to the Japanese market. It is expected that by the end of 2020, the volume of chicken exports to Japan will increase by more than 30% and reach 350 tons per month. To have a source of clean products, the company supports farmers with safe farming techniques and processes. Outside of Japan, the company plans to export to Europe.

According to the provincial Department of Animal Husbandry and Veterinary, FDI enterprises have invested capital in the field of animal husbandry quite early, contributing to improving breeds, productivity and quality of pigs, chickens and ducks. Dong Nai has become the leading province in raising pigs, chickens and ducks in the direction of concentration and has made great contributions of FDI enterprises.

*Focus on planting

FDI enterprises that came to Dong Nai opened a factory to produce animal feed after some time also paid attention to the field of cultivation. Specifically, bringing corn seeds along to increase productivity, quality, expand the area to provide raw materials for animal feed production. For nearly 10 years, over 85% of corn seeds for production in Dong Nai have been provided by FDI enterprises. Along with the production of corn seeds, businesses are investing in the production of fertilizers, plant protection drugs for corn and expanding to other crops in Vietnam.

In the world, there are about 10 large corporations specializing in developing seeds and seedlings and accounting for more than 70% of the world's vegetable seed market share, there are 7 corporations that have been present in Vietnam such as Syngenta (Switzerland), East West (Netherlands), Takii Sakata (Japan), Vilmorin (France)... and account for nearly 90% of the seed market in Vietnam. A representative of SYNGENTA VIETNAM LIMITED in Bien Hoa Industrial Zone 2 (Bien Hoa City) said that in 2000, the company invested a factory in Dong Nai to supply corn, rice and vegetables seeds to the Vietnamese market. Later, this company produced more pesticides for many crops and provided free crop care techniques to farmers. Currently Syngenta occupies a large market share of seeds and plant protection drugs in the domestic market.

Dong Nai is a favorable place for transportation, large land, developed agriculture, so many FDI enterprises have chosen this as the first factory to produce, then continue to expand to other provinces. Along with investing in a seed factory, FDI enterprises also link up with localities in the province, bringing new varieties, modern planting and tending techniques to clubs, cooperatives and farmers.

                                                                    By Vi Quan