Hung Nhon Group and De Heus Group Sign Strategic Cooperation MoU

On December 12, 2022, during the visit and working trip of Prime Minister Pham Minh Chinh to the Kingdom of the Netherlands, Royal De Heus Group and Hung Nhon Group signed a Memorandum of Understanding (MoU) on comprehensive cooperation and strategic partnership between the two groups in Amsterdam.

The signing ceremony was notably witnessed by Vietnamese Prime Minister Pham Minh Chinh, as well as government leaders and ministerial officials from both the Netherlands and Vietnam.

Attending the MoU signing ceremony were Mr. Koen De Heus, Global CEO of De Heus, and Mr. Vu Manh Hung, Chairman and CEO of Hung Nhon Group.

Under the agreement, De Heus and Hung Nhon plan to cooperate, build, and develop agricultural projects including:

• Livestock and poultry breeding.
• Developing raw material sources (corn, cassava) for animal feed production.
• Establishing high-tech agricultural production value chains modeled after Dutch cooperatives in Vietnam.

In the high-quality livestock and poultry breeding sector for the Vietnamese market, both parties will develop a high-tech farming value chain for the 2022-2030 period. Hung Nhon will invest in constructing large-scale, modern farms adhering to advanced global standards, while De Heus will supply these farms with international-standard quality pig and chicken breeds.

The ambitious goals for 2030 include reaching a capacity of approximately:

• 7,500 great-grandparent and grandparent breeding pigs in the Central Highlands.
• 30,000 commercial sows in the Southeast, South Central Coast, and Central Highlands regions.
• 58 million breeding chickens and 25 million broiler chickens in Tay Ninh.

The total projected annual revenue from these efforts is approximately $2 billion USD.

Strategic Partnership: Hung Nhon and De Heus to Revolutionize Vietnam's Agriculture

Mr. Koen De Heus, Global CEO of De Heus, shared his rationale for choosing Hung Nhon as De Heus's primary partner in Vietnam: "Hung Nhon is a reputable and professional enterprise in livestock farming in particular and agriculture in general. Importantly, Hung Nhon's operating model aligns perfectly with De Heus's development and business expansion plans, with the goal of becoming a companion to livestock farmers and businesses in Vietnam's livestock sector. De Heus is eager to partner with Hung Nhon to jointly achieve these objectives."

Mr. Vu Manh Hung, Chairman and CEO of Hung Nhon Group, expressed his perspective: "De Heus is a world-leading agricultural group with globally renowned brands like De Heus, Windmill, and Koudijs. Therefore, collaborating with De Heus is an honor for Hung Nhon. This partnership provides Hung Nhon with access to advanced Dutch livestock technology, which will enable us to develop Hung Nhon's large-scale agricultural projects in the future."

DHN High-Tech Agricultural Complexes: A Vision for the Central Highlands

As part of their strategic cooperation, De Heus and Hung Nhon have established the DHN high-tech agricultural complex chain in three Central Highlands provinces: Lam Dong, Dak Lak, and Gia Lai, with plans to expand to Dak Nong and Kon Tum.

These complexes are designed to implement 4.0 technology throughout the livestock farming process, which will help control quality, optimize efficiency, reduce production costs, and achieve high economic returns. The facilities will use grid-tied solar energy systems, utilizing 30% clean electricity to significantly reduce CO2 emissions compared to traditional power sources. They will also apply environmentally friendly and energy-saving measures in organic farming, pig slaughtering, and organic fertilizer production, meeting both Vietnamese and international technical standards and regulations.

"Once completed, the chain of projects will help shape the Central Highlands into a leading center for breeding pigs and developing high-tech livestock farming models in Southeast Asia and Asia," affirmed Mr. Hung.

Prime Minister Pham Minh Chinh's Visit to the Netherlands: Fostering Agricultural Ties

From December 11 to 13, 2022, Prime Minister Pham Minh Chinh paid an official visit and held working sessions in the Kingdom of the Netherlands. This visit aimed to reaffirm the Comprehensive Partnership between the two countries, within the broader context of their excellent relationship with the European Union (EU), especially as they prepared to celebrate 50 years of diplomatic relations in 2023.

During his meeting with the Dutch Prime Minister, Prime Minister Pham Minh Chinh made several key requests to the Dutch Government and Ministry of Agriculture:

• Continued Technical Support and Resource Mobilization: Support and mobilize additional resources from investors, donors, and development partners for the Mekong Delta region in particular and Vietnam in general, to collaboratively implement the Sustainable Agricultural Transformation Plan for the Mekong Delta.
• Technical Assistance for Digital Transformation: Provide technical support to Vietnamese management, research, and training agencies to enhance capabilities in agricultural digital transformation, emission reduction/green growth, high-tech agriculture, circular economy, agricultural landscape, and logistics.
• Collaboration in Space Technology Applications: Coordinate and support research into applying space technology in irrigation, dam incident management, water management, cooperation in combating riverbank and coastal erosion, and technology for sand accretion and land reclamation.
• Support for Vietnamese Seafood Exports: The Dutch Government to continue supporting Vietnam and advocate for the EU to remove the "yellow card" warning on Vietnamese seafood as soon as possible, while also assisting in media promotion for Vietnamese seafood processing and export, and supporting coastal communities in developing livelihoods.
• Establishment of a Food Innovation Hub: Support Vietnam in establishing a food innovation hub for Southeast Asia and 100 million low-emission farmers. Additionally, coordinate and support the organization of an international conference in 2023 on food systems in Vietnam to ensure food security amidst the global economic downturn and the ongoing Russia-Ukraine conflict.
• Promote Agricultural Trade: Both sides to actively remove barriers and promote agricultural trade through promotional conferences/markets, business delegation exchanges, and joint ventures. Requested Dutch loan support linked with corporate investment.

Overview of Key Partners:

Hung Nhon Group:

Hung Nhon is an enterprise that originated from livestock farming. With over 20 years of development experience, it has transformed into a "multi-sector" group actively operating in various fields in Vietnam. Hung Nhon Group's particular strength lies in large-scale livestock farming, applying advanced technology with a closed-loop process from breeding stock and feed to processing and slaughtering, all adhering to ISO, Global GAP, and other international specialized standards.

Hung Nhon Group currently owns 15 member companies and the DHN chain system, encompassing 1,000 hectares of farms across the Southeast and Central Highlands regions. Its broiler chicken farms supply over 3 million chickens annually, layer hen farms provide over 130 million eggs annually, and its breeding pig and commercial pig farms meet Vietnamese and international standards, with a total annual output of 14,000 breeding pigs (parent stock) and 375,000 commercial pigs.

De Heus Group:

De Heus is a world-leading group with over 110 years of experience in providing advanced solutions for animal feed and nutrition. De Heus currently operates1 over 100 modern factories globally, with products exported to more than 75 countries and territories worldwide. In Vietnam alone, De Heus owns 23 factories equipped with cutting-edge automated technology lines, supervised by international experts to ensure production according to ISO 22000 and Global GAP standards.

De Heus Vietnam prides itself on supplying European-quality animal, poultry, and aquaculture feed products to millions of farmers and cultivators. It also offers many breakthrough solutions that help farmers reduce costs, increase productivity, and create clean, safe, high-value products. De Heus Vietnam has pioneered and successfully collaborated with numerous partners to develop value chain linkages in agricultural production, focusing on high-quality breeding stock, producing traceable and export-standard clean meat, bringing significant benefits to Vietnamese farmers and consumers.

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