In late October, Vinh Hoan had finished divestment of assets in its rice processing subsidiary – Vinh Hoan 2 Food Co., Ltd – to one of the largest rice food companies in the world.
Vinh Hoan 2 Food was established in 2011 and started operation in April 2012 with chartered capital of VND 100 billion, 99.3% owned by Vinh Hoan. Its main business is drying, peeling rice, manufacturing parboiled rice and polishing rice for export. Due to unfavorable market conditions leading to low selling prices, together with high depreciation costs, the rice business had suffered loss in recent years.
The loss from selling assets of VND 37 billion was already recorded on its Quarter 3’s income statement released on October 20, 2018. After the deal, Vinh Hoan cashed in over USD 5 million.
The deal marked Vinh Hoan’s another divestiture of non-core businesses. The process has enabled Vinh Hoan to focus more resources on its core which is farming, processing, and exports of pangasius.
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