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COVER STORY

US oil and grain company, has recently invested The call for radical transparency is increasing, agents, and even feed businesses have all been
handsome sums in supporting Vietnamese it notes, and more than ever its customers affected by rising raw material prices.
farmers and ensuring a stable supply of quality and consumers want to understand the story Moreover, Covid-19 is a clear and present
feed. It opened its fifth feed plant in Vietnam behind the products they buy. By investing danger for businesses. Among major FDI busi-
in 2019 and employs over 1,200 workers, and and partnering in solutions to enhance trans- nesses Vietnam’s agriculture sector, VET
has invested in a brand-new feed factory on parency in the food system, Cargill can deliver approached Wilmar Agro Vietnam, a subsidiary
an area of 4.6 ha at the Hoa Mac Industrial a meaningful and sustainable impact on the of Wilmar International and specializing in
Park in northern Ha Nam province with total ground and increase consumer confidence. the production of de-fatted rice bran and rice
investment of over $20 million and a designed ADM, meanwhile, puts high priority on bran oil, but it declined to share any information
capacity of 300,000 tons per year. It recently investing in hi-tech sustainable development. due to the havoc caused by the pandemic.
expanded its range of Wisium premix offerings And ADM Animal Nutrition Vietnam’s Mr. Fering said that while Cargill has
in the country with the acquisition of the approach drives innovation, value creation, expanded its portfolio in Vietnam by adding
Golden Farm Production & Commerce Com- and differentiation to provide individualized a protein business in 2018 and conducts ongo-
pany Limited. “ADM has a beautiful portfolio animal nutrition solutions to enhance animal ing investments in swine genetics and animal
in Vietnam’s animal nutrition industry, includ- welfare. Over recent years, facing severely pol- nutrition specialties, it welcomes any invest-
ing in livestock, aquaculture, premix, and pet luted water and disease outbreaks, most Asian ment and improvements from the country’s
food,” Mr. Serge Corneillie, CEO of ADM governments have issued stricter regulations new Cabinet in the agricultural supply chain.
Animal Nutrition Vietnam and Cambodia, that aim to protect the natural environment. “Incentives and further investments in infra-
told VET. “And we intend to invest much “At our ADM Aqua R&D Centre in Vietnam, structure along the supply chain will ensure
more in Vietnamese agriculture as we believe we have successfully developed Biosipec, which the long-term success and growth of Vietnam’s
strongly in the future of the local market.” is a shrimp farming-nursing model promoting agribusiness sector,” he said.
There are many other foreign agricultural limited water exchange,” said Mr. Corneillie. It can’t be denied that Vietnam’s business
enterprises in Vietnam, including De Heus, which “We have started applying our two nursery environment has created conditions favorable
has nine feed mills in key provinces around the models and recorded positive results.” for the development of foreign investment
country more than 12 years after entering its Its biomass boiler technique has been in agriculture. “I recognize that Vietnam has
animal feed, livestock, and food market. applied at all five facilities in Vietnam, while been active over recent years and its business
priority has been given to low-emissions environment has been greatly improved, with
Importance of sustainability materials, such as rice husks, to mitigate fossil greater transparency and trade barriers elim-
Regardless of achievements to date, sus- fuel consumption. Furthermore, biomass can inated to effectively mobilize internal and
tainable development is the goal for FDI busi- be sourced locally, contributing to sustainable external resources,” Mr. Corneillie said. “I
nesses in Vietnam’s agricultural sector so that supply. “By managing resources responsibly, appreciate the efforts of the Vietnamese Gov-
achievements are long-lasting and continuing. we work to reduce greenhouse gas emissions,” ernment in attracting foreign capital.”
GreenFeed demonstrated its strong biosecurity Mr. Corneillie added. “We also focus on hi- The GreenFeed representative pointed
capabilities throughout the African Swine tech investment such as automated technology, out that demand in Vietnam is growing and
Fever (ASF) pandemic, with none of its pig mobile labs, and digital transformation 4.0.” there is a severe pork shortage and price
farms being affected. According to a company volatility due to ASF, limited pig farming
representative, over half of Vietnam’s pork is Business environment key capacity, safe and traceable pork still not
currently supplied by small-scale farms with There are clearly many challenges for FDI being common, and the country still devel-
low biosecurity standards. “As a closed feed- businesses to address in Vietnam. The Green- oping and strengthening regulations and gov-
farm-food chain, GreenFeed has a scale where Feed representative said that ASF has been a ernment support for the segment. Despite
it can provide solutions in every step of ani- major issue for the industry over the last few such issues, the company has identified many
mal-based food production, and with this years, and Mr. Corneillie agrees that Vietnam’s opportunities that can be leveraged for growth.
recent investment will scale up the capacity of swine business has suffered a couple of bad Cargill has a 25-year history in Vietnam
its pig farming to produce traceable and safe years from the disease, though the situation and appreciates the country’s long-term com-
pork that meets the rising demand in the is showing signs of improving. mitment to foreign investment, while believing
country,” the representative told VET. “We ADM Animal Nutrition Vietnam entered that the continued liberalization of its legal
will continue to improve our biosecurity and the market during a difficult time for all indus- system will further align commercial statues
sustainable production practices to ensure tries. Market prices still fluctuating is therefore with international norms and help in attracting
stable supply for the country’s livestock sector. a significant problem. Farmers, wholesalers, more foreign investment. Mr. Fering said
We will also continue investing heavily in tech- that over many years, the Vietnamese Gov-
nology to help with sustainable production.” ernment has made significant reforms in reg-
At Cargill, sustainability is written into the By managing resources ulations and laws to encourage foreign invest-
company’s purpose and woven into its core responsibly, we work ment, and continued reform is welcome.
operations, including investment priorities, to reduce greenhouse gas “Vietnam’s commitment to free trade agree-
organizational structure, and resource alloca- emissions. We also focus ments over many years is to be commended
tion. The company recently outlined its progress and an ongoing focus on global free trade
in sustainability goals in critical supply chains, on hi-tech investment such demonstrates its rapid integration into the
including aqua nutrition, cocoa and chocolate, as automated technology, global economy,” he added. “Like the Viet-
palm, soy, beef, and maritime transportation. mobile labs, and digital namese Government, Cargill wants this focus
With a focus on making progress in land use, transformation 4.0.” to continue. We have always had a good work-
climate change, water, farmer prosperity, and ing relationship with the government, not
human rights, the company is also working MR. SERGE CORNEILLIE, just in business but also in corporate respon-
across every supply chain to drive sustainable CEO, ADM Animal Nutrition Vietnam sibilities, and we expect this to continue with
production, transportation, and operations. and Cambodia the appointment of the new Cabinet.” %

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