Asia: Korean food giants look to Vietnam to source and expand

In September, Korea’s CJ Group signed a memorandum of understanding (MoU) with the People’s Committee of Vietnam's southern Ninh Thuan province to develop chilli-growing in the area. The plan is split into two phases. In the first CJ is experimenting with a one hectare area through 2014. In the next the two sides will discuss cooperation in growing a large scale chilli area over 10 years, or longer. About 3,000 local farmers are expected to be involved with an estimated output of 3,000 tonnes of dried chillies per year, from 12,000 tonnes of fresh chillies.

The Korean group is also considering building a chilli processing and packaging plant in the province. It aims to also produce different sauce products once material production is stable.

CJ Group experts would provide high-quality chilli varieties and technology transfer, as well as guarantee appropriate purchasing prices from farmers. “In the past, Japan was our top material market, but now this is moving to Vietnam. The deal with Ninh Thuan is only one of several prominent investments in the country. Alongside chilli, CJ is also working on farming cabbage, as these two products are staples in making kim chi,” said Lee Ho Yeon, a CJ Group procurement expert.

“Strict production, delivery, and good quality control are of paramount importance at CJ,” Lee added.

Source: Anh Hoa

Publication date: Thu 28 Nov 2013