Rice terraces in Vietnam. (Photo: Internet)
Kitoku Shinryo, which engages in the rice business, will acquire an 80% stake in a Hanoi-based rice wholesaler, which collects rice from a network of farmers who grow Japanese rice varieties Koshihikari and Akitakomachi in the country’s north, the Nikkei Asian Review reported.
Kitoku Shinryo will sell the rice to Japanese restaurant chains in Vietnam, Singapore and Hong Kong. The company is also considering selling the rice to Japanese convenience stores, which are expected to mushroom in Vietnam once the Trans-Pacific Partnership trade deal comes into force.
The company already grows Japonica rice in southern Vietnam via a joint venture with An Giang Import Export Company (Angimex) and exports it to other Southeast Asian countries and North America. Kitoku Shinryo expects sales of over 10,000 tons this year.
The Japanese company also plans to establish a new company as early as next spring and invest $3.36 million in Japanese-style drying and rice-polishing equipment.