This value chain creates a closed-loop system that produces high-quality, clean chicken meat, notably without the use of antibiotics during the farming process. If any antibiotic residue is detected, the entire batch will be rejected.
Mr. Vu Manh Hung, Chairman of Hung Nhon Group, stated, "Our criteria for selecting partners, with a view to export, are professional, dynamic corporations that meet international standards." He added that Hung Nhon itself, to be able to export to a demanding market like Japan, also meets GlobalG.A.P. standards with 258 criteria.
The company must also meet numerous other strict requirements, such as not being allowed to handle poultry by their heads, necks, wings, or tails (which would stress the animal), or using influenza prevention medication. Furthermore, the farming area must be officially declared disease-safe by the state. Each month, the company exports 100-200 tons of broiler chicken, with a goal to gradually increase volume and enhance quality.
Within this value chain, Hung Nhon is responsible for raising the chickens. From tiny chicks, it takes an average of 45 days for them to become market-ready broilers, weighing over 2kg each. The company ensures the chickens are kept healthy and clean, following international standards for feed and maintaining a well-ventilated farming environment.
To achieve this, not only must the breeding stock and feed meet standards, but the company has also established a scientific management system that controls feed dosage, lighting, and conducts regular veterinary health checks. These processes are all automated using machinery and management software. The company reports implementing a Farm Management and Traceability software, which digitizes all farming activities, allowing for daily monitoring of temperature, humidity, water source, and feed intake for each individual chicken, all in accordance with GlobalG.A.P. standards. This system also helps to significantly reduce labor costs.
Hung Nhon Group: A Pioneer's Journey to High-Tech, Integrated Chicken Farming
Mr. Vu Manh Hung's journey in chicken farming illustrates a strategic evolution from traditional methods to a highly advanced, integrated model.
In 2000, Mr. Hung established a 5,000-bird open-air chicken farm, requiring dozens of manual laborers. However, this model led to increased disease susceptibility in the chickens due to extensive human contact, and a decline in meat and egg quality. It wasn't until 2006 that the company achieved a breakthrough by investing in closed-loop chicken farms. These facilities were equipped with advanced air conditioning systems and machinery from Germany, implementing 100% automated farming technology. This marked the successful establishment of a standardized chicken farming process for the company.
According to Mr. Vu Manh Hung, the application of high technology in livestock farming and the development of a linked value chain began 12 years prior, following a trip to Germany where he studied and brought chicken farming technology back to Vietnam. "To raise 5 million broiler chickens, we invested over 100 billion VND in modern machinery and production lines," Mr. Hung emphasized.
Efficiency, Quality, and Strategic Partnerships
While the adoption of automation reduced manual labor, Hung Nhon Group simultaneously prioritized training a skilled, highly specialized workforce in animal husbandry. This strategic focus ensures that Hung Nhon's chicken farms supply over 4,500 tons of clean chicken meat to the market annually.
Mr. Hung recognized that technology alone wasn't enough; stable market access was crucial. Therefore, alongside technological investments, he forged key partnerships. Initially, he collaborated with C.P. Thailand for off-take agreements of finished chickens. To ensure sustainable business and mitigate risks, he then built a comprehensive linked chain model involving:
- De Heus (Netherlands): For feed supply.
- Bel Ga (Belgium): For breeding stock.
- San Ha (Vietnam): A slaughtering company.
Expanding his vision towards exports, Hung Nhon Group partnered with Koyu & Unitek LLC to pave the way into the demanding Japanese market. This strategic integration and international collaboration have been fundamental to Hung Nhon's success and its pioneering role in Vietnam's high-tech agricultural sector.
Hung Nhon Group: High-Tech Investment, Long-Term Vision, and Export Success
According to Mr. Vu Manh Hung, implementing high technology and building a robust value chain in agriculture demands significant long-term capital investment before clear effectiveness can be seen, given the substantial risks inherent in the sector.
"The reason we targeted Japan is due to that market's reputation and stringent quality control," the chairman shared. "If we could meet those criteria, it would be easier to expand our reach to many other countries." By September 2017, the value chain built by the company had successfully facilitated the export of Vietnam's first 400 tons of broiler chicken to Japan from Long An International Port.
"The prerequisite is the leader's vision when building strategy and brand, coupled with a passion for agriculture. For example, our company invested thousands of billions of dong and it took over 10 years to recoup that capital," Mr. Hung affirmed.
Hung Nhon Group: A Diverse and Integrated Agricultural Powerhouse
Hung Nhon Group is a multifaceted corporation with a total capital approaching one trillion VND. Its extensive operations in Binh Phuoc province include:
- 40 livestock farms
- 360,000 laying hens, providing 130 million eggs annually
- 5 million broiler chickens per year
- A 10,000-sow pig farm
- A 40,000-ton per year fertilizer plant
- Rubber tree plantations in Bu Dang, Bu Gia Map, and Dong Phu districts, totaling over 800 hectares.
Hung Nhon's strategic focus on high technology, integrated value chains, and demanding export markets underscores its pioneering role in transforming Vietnam's agricultural landscape.
