HANOI: Major food wholesaler Kitoku Shinryo will produce more varieties of Japanese rice in Vietnam starting in 2016 to try to capitalize on growing demand in that market.
The Japanese company will acquire an 80% stake in a Hanoi-based rice wholesaler, make it a subsidiary and establish a new company as early as next spring. Kitoku Shinryo also will introduce Japanese-style drying and rice-polishing equipment. It expects to spend around 400 million yen ($3.36 million) on the project.
The Vietnamese wholesaler collects rice from a network of growers in the country’s north, which is best suited for planting high-quality rice. Those farmers grow Koshihikari and Akitakomachi rice, which originated in Japan.
Kitoku Shinryo will sell the rice to Japanese restaurant chains in Vietnam, which are growing in popularity, as well as Japanese restaurants operating in Singapore and Hong Kong. The company also is considering selling the rice to Japanese convenience stores, which are expected to multiply in Vietnam once the Trans-Pacific Partnership trade deal eases restrictions.
The company already grows Japonica rice in southern Vietnam through a joint venture and exports it to other Southeast Asian countries. Kitoku Shinryo expects sales of over 10,000 tons this year.
