Vietnamese firms scale up production and M&A to claim more of the $33 billion market.

Major Vietnamese livestock companies like Hoa Phat, Dabaco, and BaF have reported record profits in 2024 and Q1 this year, signaling strong momentum as they expand in the domestic market estimated at $33 billion.

Big profits reported

Nguyen Viet Thang, CEO of Hoa Phat Group, shared that agriculture still contributes modestly to the group’s overall revenue - around 5 percent. However, in Vietnam’s livestock sector, Hoa Phat has emerged as a key player.

Hoa Phat entered agriculture in 2015 and now operates livestock farms for pigs, Australian cattle, and laying hens across various provinces. It also runs two animal feed production facilities in Hung Yen and Dong Nai.

Thang noted that the group’s livestock investments are primarily driven by market demand, but its long-term strategy focuses on large-scale, closed-loop models.

Thanks to this approach, Hoa Phat’s pre-tax profit from agriculture reached nearly $17.6 million in Q1, up 122.4% from around $7.9 million in the same period last year.

In 2024, Hoa Phat’s agricultural segment earned revenue of $278 million, a 12% increase from 2023. Net profit jumped more than fivefold year-over-year, reaching approximately $40.8 million. All of this revenue stems from domestic sales, as Hoa Phat currently focuses solely on meeting internal market demand, with a 10% growth target for the year.

GreenFeed Vietnam also posted a surprise after-tax profit of over $82.9 million in 2024, surging 382% - nearly fivefold - compared to 2023.

Vietnamese livestock conglomerate Dabaco recorded an after-tax profit of approximately $20 million in Q1, seven times higher than Q1/2024's $2.86 million. Its 2024 revenue hit $532 million, a 22% increase from the previous year, while net profit soared to $30.1 million - about 30 times higher than in 2023.

At the annual general meeting, Dabaco Chairman Nguyen Nhu So stated: “If pork prices remain around 60,000 VND/kg (approximately $2.35), we are confident in achieving a net profit of $59 million in 2025.”

BaF Vietnam Agriculture Joint Stock Company reported over $15.4 million in after-tax profit last year, nearly eight times its 2023 result. Q1 profits rose 13% year-over-year, reaching $5.2 million. In 2025, BaF targets $219.5 million in revenue and $25 million in net profit.

In processing and distribution, Masan MEATLife - under Masan Group - recorded $81.2 million in revenue and $4.5 million in net profit attributable to majority shareholders in Q1/2025, marking its third consecutive profitable quarter.

Accelerating in a $33 billion domestic market

Vietnam’s livestock industry has shown steady growth in recent years. According to the Department of Livestock and Veterinary Services, under the Ministry of Agriculture and Environment, the sector was valued at $33 billion in 2023 and is projected to reach $35 billion in 2024.

However, foreign direct investment (FDI) enterprises currently dominate Vietnam’s livestock market.

A Vietcombank Securities report showed that in 2022–2023, domestic firms accounted for only 19% of pork supply, with smallholder farms providing 38% and FDI companies controlling 43%, illustrating the overwhelming presence of foreign corporations.

In industrial compound feed production, FDI companies also command around 60% of the output, leaving domestic producers with 40%.

Despite being at a disadvantage, domestic giants like Dabaco, Hoa Phat, Masan, BaF, Mavin, GreenFeed, and Truong Hai are ramping up efforts to capture a greater share of this lucrative $33 billion market.

BaF, for example, has been expanding through aggressive M&A activity, acquiring 15 livestock firms since November 2024. Most recently, it acquired 50% of Khoi Duong Livestock Co., which operates a 33-hectare pig farm in Dak Nong Province.

BaF aims to raise pork output to 1.65 million pigs in 2025 and 2.74 million in 2026, targeting 10 million pigs by 2030 to become a leading 3F (Feed-Farm-Food) livestock enterprise in Vietnam.

After a decade in agriculture, Hoa Phat is now among Vietnam’s top 15 animal feed producers. In poultry, it sold 330 million eggs in 2024 and leads the clean egg market in northern Vietnam with over 900,000 eggs sold daily. Its pork production has also exceeded internal projections.

Dabaco is scaling up to 60,000 sows and 1.5 million fattening pigs, reducing reliance on smallholder farms. It is also investing in livestock, feed production, and premium food lines such as green-shell eggs and ready-to-eat eggs under the Devi brand to enhance competitiveness.

In 2025, Masan MEATLife plans to focus on processed meat, targeting $323–343 million in revenue. Over the long term, it aims to fully transform into a branded meat processing company with a revenue goal of $2 billion.

Experts believe the livestock sector has ample room to grow, not only due to Vietnam’s 100 million residents and millions of annual foreign visitors, but also thanks to expanding export potential.

Source - https://vietnamnet.vn