Masan MEATLife Corporation and De Heus Vietnam signed a memorandum of understanding for a strategic partnership. Both companies signed the agreement on September 14th, 2021.
According to the signed memorandum of understanding (MOU), the parties will develop and strengthen strategic partnerships and business cooperation opportunities. Together the partners are aiming to optimize and drive productivity of Vietnam’s 3F (feed-farm-food) animal protein value chain by leveraging on each respective parties’ strength and capabilities. In particular Masan will focus on the branded chilled meat business. De Heus Vietnam will prioritize providing animal nutrition, genetics and husbandry solutions.
The companies will also partner with independent livestock and aquaculture farming entrepreneurs and provide an end-to-end solution for them to be competitive and win over in the medium and long-term. Furthermore the agreement states that the companies will develop a 3F operating model to ensure safe, innovative, and affordable chilled meat products are available to 100 million Vietnamese consumers.
The MOU embodies the spirit of the EU – Vietnam Free Trade Agreement and Investment Protection Agreement. The strategic partnership between the two companies can greatly benefit Vietnam’s animal protein value chain and socio-economic development. In particular, the combination of De Heus Vietnam’s expertise in the upstream sector and Masan’s champion integrated FMCG-retail platform has the potential to accelerate the modernization of the animal protein value chain.
Danny Le, CEO of Masan Group cum Chairman of Masan MEATLife, said: “I believe this partnership will significantly contribute to the modernization of Vietnam’s animal protein infrastructure to be on par with those of developed countries. Our focus is to ensure that all consumers have access to safe, healthy, delicious and, most importantly, affordable meat and fish products. This has great potential to be a transformative partnership that enhances consumers’ daily lives.”
Gabor Fluit, CEO De Heus Asia comments: “We are delighted to cooperate with Masan MEATLife. Overtime, higher regulatory standards are being implemented in Vietnam’s animal protein value chain in terms of food safety, biosecurity, traceability, animal welfare and antibiotics usage. In the meantime, it is also crucial to promote the competitiveness of the country’s animal protein products compared to those from developed countries. To achieve this, it is important for the various links in the value chain to optimally work more closely together. I am confident that by combining the knowledge and experience of Masan and De Heus, we will be able to accelerate the desired progress in these areas.”
The MOU is a non-binding agreement, but the parties are committed to develop one or more collaboration agreements by the first quarter of 2022. All cooperation agreements and/or ventures are subject to customary corporate and regulatory approvals.
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