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Southern Vietnam: BRC-certified rice vermicelli production with outgrowers

General information
Project location: Bin Duong province, Southern Vietnam
Consortium: Sukmono BV, Nhat Nam Phuong Ltd, North Wind Hotel
Project Budget: € 1,498,790
External financing: PSi
Project period: From July 2009 to June 2013

Sukmono BV produces and sells traditional ready-made Asian meals on the European market. The dried rice vermicelli they currently source from China, however, frequently lacks the required the quality. This, together with the increasing demand from the market for compliance of food products with food safety standards, quality control and traceability, has led to the decision to invest in the food production chain inVietnam. In this way, Sukmono will be able to secure the supply, quality and origin of their rice vermicelli.

Sukmono intends to invest in establishing a rice vermicelli production facility near Ho Chi Minh City (HCMC), sourcing rice both from rice processors and outgrowers within the region. For this purpose, a joint venture has been set up with local packing company Nhat Nam Phuong Ltd and the HCMC based hotel North Wind.

Investments will include a modern processing facility with rice processing equipment. The company will acquire certification on BRC (British Retail Consortium standard), Environmental Management (ISO 14001) and Quality Management (ISO 9001:2000). 104 staff will be employed and trained in different aspects related to production, safety and quality management. In addition, 50 rice outgrowers will be trained in applying Best Management Practices and organic production. The project partners will enter into a long term buying arrangement with the outgrowers for the supply of rice.

Advance Consulting assisted the partners to develop the project proposal and business plan and continues to be involved in the project’s implementation.

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