Per the MoU, a joint venture will be set up to capitalize on the strength of each other.
According to Backahill Chairman Erik Paulsson, Backahill chose NutiFood as its partner as the company was in Forbes’ top 40 leading brands in Vietnam, and it has met all fastidious requirements to gain US Food and Drug Administration (FDA)’s certificate to export dairy products into this market.
Meanwhile, Nutifood hopes to benefit from Backahill’s deep understanding of and considerable prestige in the international markets.
The Swedish group established its subsidiary Foodhills in 2006 with the aim of building a sustainable food production centre in Bjuv, which is envisioned to become a food supplier for the whole Europe.
Erik Paulsson said that Foodhills is located in the south of Sweden, the best agricultural zone in the North Europe. The region is home to some 2,500 organic-standardised farms, providing abundant supply sources for organic food processing plants.
Foodhills is calling for investors to build the south of Sweden into a food centre of Europe, and Nutifood is among the best partners to realise the set goal, he added.
Partnership with Backahill is a positive step of NutriFood in expanding its business to the world since the firm received the US’s FDA certificate.
“We made a snap decision on the investment in Sweden, just after a meeting with Backahill Chairman. We saw this was a good opportunity for the company to complete strategies to reach global markets”, said NutiFood Chairman Tran Thanh Hai.
Hai added that Foodhills is running a green industrial park, which is a wonderful place to develop agriculture, especially organic dairy farms. “It will provide excellent materials for NutiFood to produce nutritious products for the Vietnamese market as well as for export to European and Asian countries”, he said.
Vietnam and Sweden have enjoyed constant growth in economic cooperation, with two-way trade hitting US$1.3 billion in 2017, up 9% from 2016. Sweden currently ranks 42nd out of 116 countries and territories having investments in Vietnam.
At the MoU signing ceremony, Swedish Consul General in Ho Chi Minh City Krister Kling expressed his belief that the collaboration between NutiFood and Backahill will contribute to the sound relations between the two countries.