The mainland's biggest domestic feedgrain producer has moved into Vietnam, setting up plants in Hanoi and Ho Chi Minh City, and is considering a venture there to make motorcycles.
Liu Yonghao, chairman of the New Hope Group, said that, with the domestic feedgrain market close to saturation, he had looked at expansion into the Southeast Asia region and spent US$5 million on a wholly owned plant in Ho Chi Minh City, which was in operation.
'The level of the economy and living standards there are similar to those in [the mainland],' he said.
'It is also in transition to a market economy, so we are familiar with conditions there. We are selling under our New Hope brand.'
His firm is building a second plant in Hanoi with an investment of US$4 million.
'Our main competitors there are international companies from France, the United States and the CP group of Thailand,' he said.
