HCM CITY — VinaCapital Vietnam Opportunity Fund (VOF), the flagship fund of VinaCapital, has invested US$32.5 million to acquire a significant minority stake in Ba Huân JSC.

VOF may also invest a moderate amount of additional capital during the next 12 months as it delivers on mutually agreed-upon milestones, the company said in its statement.

“This private equity investment is consistent with our strategy of focusing on companies operating in the sectors of the economy benefitting from strong domestic growth. Vietnamese food and beverage companies in particular have tremendous growth opportunities ahead of them as consumers spend more on high-quality and healthy products,” said Andy Ho, managing director of VOF.

Ho said Ba Huân has become one of the strongest fresh food brands in Việt Nam and the company’s growth is due to its reputation for producing high-quality and safe foods.

“We look forward to working with Ba Huân’s management team to help implement new management practices, improve governance, and otherwise help take the company to the next stage of growth,” he added.

With a stake of more than 30 per cent in the pasteurised egg market, Ba Huân is a well-known name to Vietnamese consumers.  The company operates two fully enclosed industrial poultry farms in the two southern provinces of Bình Dương and Long An. 

Each day, Ba Huân supplies over 1.7 million eggs, delivers over 15,000 chickens, and processes over 25 tonnes of fresh poultry meat.

In 2018, the company expects revenue to surpass $90 million. 

According to Poultry World, egg consumption is on the rise in Việt Nam, with both chicken and duck eggs high in popularity. Chicken consumption is also increasing, growing at a compound annual growth rate of 8.6 per cent, according to DBS Bank, and local producers have struggled to meet demand. — VNS