Orion Forms 'Potato Alliance' with Vietnam National University of Agriculture

Orion Vietnam Corporation has decided to collaborate with the Institute of Agricultural Biology under Vietnam National University of Agriculture on potato production and supply.

On the 25th, Orion Vietnam Corporation and the Institute of Agricultural Biology of Vietnam National University of Agriculture held a strategic business agreement ceremony at Vietnam National University of Agriculture in Hanoi, attended by key officials including Park Se-yeol, CEO of the Vietnam Corporation, and Pham Van Cuong, Vice President of Vietnam National University of Agriculture, the company announced on the 26th.

Orion - Vietnam National University of Agriculture Institute of Agricultural Biology Memorandum of Understanding Ceremony

원본보기 아이콘

Both parties agreed to establish a strategic partnership over the next 10 years to carry out tasks such as the production, development, supply, and quality control of seed potatoes and raw potatoes. In addition, by agreeing to focus on developing new varieties suitable for the Vietnamese environment with good quality and productivity, they will conduct an enhanced industry-academic cooperation project beyond the research support activities previously undertaken.

Since 2008, Orion has guaranteed stable income through contract farming with local Vietnamese farmers while providing consumers with high-quality potato snacks. In particular, ‘O’Star’ (Korean name Pokachip) has secured the number one market share in the Vietnamese fresh potato snack market, surpassing leading global snack brands with its excellent taste and quality.

Moreover, since 2016, as part of its social contribution activities, Orion has continuously supported the ‘Vietnam Hometown Potato Support Project,’ which helps increase farmers’ productivity and income. Over the past eight years, it has provided a total of 1.3 billion KRW (25.3 billion VND) worth of agricultural machinery, research facilities, and scholarships to farmers and Vietnam National University of Agriculture.

Orion officially entered the Vietnamese market by establishing its first local production facility in Ho Chi Minh City in 2006 and has continued its growth by operating a second factory in Hanoi in 2009. In 2022, the Vietnam Corporation surpassed annual sales of 400 billion KRW for the first time, and in response to increasing local demand, it is expanding and enlarging its factories in Ho Chi Minh City and Hanoi to establish a long-term growth foundation. Beyond the popular national snack Choco Pie, Orion has diversified its product portfolio with rice snacks ‘An,’ mass-produced bread ‘C’est Bon,’ and dairy beverages, establishing itself as a leading comprehensive food company locally.

An Orion official said, “Through this agreement, we expect to lay the foundation for stable procurement of good raw materials while contributing to the development of Vietnamese agriculture and the improvement of farmers’ income. As a market-leading company, we will continue efforts to provide consumers with delicious and high-quality products and make tangible contributions to the local community.”

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.