Vietnam’s agribusiness Loc Troi Group has recently announced that it will form two joint ventures (JVs) with Hunan Yuan’s Science and Technology Develop Co Ltd to promote its agricultural products in China.
The two joint ventures will be located in Vietnam and China respectively, having a total initial charter capital of US$10 million.
“Despite an initial unexceptional capital, the projects pose great potential for growth,” said Loc Troi chairman Huynh Van Thon.
The joint venture based in Vietnam will focus on developing new methods that will yield exponential productivity when growing rice seeds, in order to serve both Vietnam and other Southeast Asian markets.
The R&D will be centered on creating a rice seed which would yield better response to climate change which is often a major challenge to harvesting significant rice crops, as well as studying the development of other types of seeds such as corn and vegetables.
Meanwhile, the joint venture based in China will focus on providing rice and other plantation products such as coffee and pepper to the local market which has a 1.4 billion population.
Loc Troi, formerly known as An Giang Plant Protection also expects the partnership to help curb the price manipulation of exported agricultural commodities to China, in addition to promoting the image of Vietnamese agricultural products.
This is not the first agreement between the two companies, as they have already partnered in researching rice seed prior to this JV agreement.
Founded in 2007, Hunan Yuan’s Science and Technology Development is one of the companies in China that specializes in hybrid rice seeds.
In another recent development, StanChart PE has joined Loc Troi Group’s board of driectors last month.
This news is published on Reuters.