Hanh Phuc Rice Joint Stock Company (Vietnam)

Being founded in Feb 2012, the subject seemed to not have any business activities in the years before 2019. The subject is now focusing on importing and trading raw materials for animal feed manufacturing. These products are imported from Singapore, India, Australia… The subject is considered as a member of the Tan Long Group.Especially, the subject started construction of its Hanh Phuc rice mill project in late 2018 with a total land area of 16 hectares, being the biggest rice mill project in the Southeast Asia region. As introduced, the project had a total investment capital of VND 1,352 billion and a design milling - polishing - separating capacity of 1,600 tons of output rice per day and a drying capacity of 4,800 tons of fresh rice per day. Saigon – Hanoi Commercial Joint Stock Bank (SHB) was the main credit supporter for this project. At the end of 2022, this factory officially went into operation. According to the company's chairman and general director, the subject chose An Giang province to locate its factory because this is the center of the 5 largest rice regions in the Mekong Delta, this raw material area has an area of nearly 300,000 hectares, plus 6 million hectares of the entire region. Therefore, this location is considered the most favorable when farmers sell products to factories.According to the subject's accountant, currently, this company is milling rice for A An rice brand of Tan Long Group. Therefore, the turnover of this operation is insignificant. Moreover, the subject is in the process of applying for a license to export rice. It is expected that the license will be completed in the first or second quarter of 2024. After that, the company will conduct export activities. In fact, the subject already has a ready source of customers to export rice on the base of Tan Long Group.He also shared that the subject's core target activity is the rice trade; therefore, after completing the necessary procedures, the commercial import of raw materials for animal feed manufacturing activities will gradually decrease to focus on the main area as set out. Currently, revenue from raw materials for animal feed segment accounts for the majority of this company's total revenue (over 95%). However, in the future, it will gradually decrease in the following years to make room for rice trade and export. He also added that the subject's revenue in 2023 will not have many breakthroughs and it is similar to the previous year.