Investment takes place amid increasingly fierce competition in the local industry.
After two years of research and evaluation, KSK Global, a major agriculture developer in the US, views Vietnam as a suitable partner. The company and its partners are promoting the final steps in KSK Global directly investing in the processing and animal feed industries in Vietnam at some point this year.
According to a representative from KSK Global’s office in Vietnam, both industries hold great potential in Vietnam for large-scale investment despite the low margins and extensive competition. “KSK Global has the financial resources, technology, and experience, while Vietnam has an investment environment with potential, so this would be a strategic partnership where both sides will benefit,” he said.
Vietnam’s animal feed market is developing rapidly, with average growth of 10 to 13 per cent each year. The country leads the way in ASEAN and ranks 12th in the world in the industry. Demand in Vietnam stands at about 16 million tons a year, bringing in about $6 billion. Forecasts to 2020 put exports at 25 to 26 million tons annually, worth $10 billion.
KSK Global is a financial investment institution headquartered in the US. In 2012 it officially began investing in the agricultural sector, then in 2013 expanded its investment to Vietnam and set up a representative office at the Saigon Trade Center in District 1, Ho Chi Minh City.