Monday, April 16, 2012

Foreign investment up in Vietnam animal feed industry


    Foreign firms have been increasing their investments in Vietnam's animal feed industry, expanding production and the overall market to keep up with growing demand, according to the Vietnam Animal Feed Association.
    In March, U.S.-invested Cargill Vietnam added two factories to its nine existing facilities, increasing its total capacity to 1 million metric tons per year and accounting for 10 percent of the local market. In 2011, China-based CP and New Hope announced that they will each build six additional factories to their existing Vietnam operations by 2014.
    Vietnam's animal feed demand is expected to reach 18 to 20 million metric tons by 2015 and 25 to 26 million metric tons by 2020. The country currently has 59 foreign-invested firms and joint ventures which hold 70 percent of the domestic market share, while 180 local firms retain the remaining 30 percent.

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