Khu Hope Feed Company, the first feed company invested by Tequ Group in Vietnam, with the investment of $10 million and an annual output of 400,000 tons, is currently the largest Chinese-funded feed manufacturer in Viet Nam, according to an official source in China.

Speaking at the launching ceremony of the production yesterday, 19 September, Hoang Kim Giao, director of the Livestock Breeding Department under the Vietnamese Ministry of Agriculture and Rural Development, said the Vietnamese government has always attached great importance to the development of livestock breeding industry, as the current feed market in Viet Nam is still in short supply. The operation of the venture invested by Tequ Group will bring advanced feed production technology and management experience to Viet Nam, and further enhance agricultural cooperation between the two countries.

Lai Thanh Son, vice governor of Bac Giang province, said livestock industry is a pillar and key support industry in the province, adding that the project will greatly promote its livestock feed industry and improve the local farmers' economic benefits.

Wang Degen, president of Sichuan Tequ Group, said the operation of the Khu Hope Company made a very good start in the group's business in Viet Nam. Tequ Group will take advantage of the rich local resources and other favourable conditions to improve the investment in Viet Nam and achieve the group's strategy of a complete livestock and aquiculture, feed production and food processing chain in Viet Nam by 2020.

The group will construct seven more feed mills, two breeding pig farms and two breeding poultry farms in Viet Nam between 2012 and 2017, bringing the group's annual sales to 2.8 million tons and an production value for the year to US$3 billion by 2020, according to Mr Wang.