Unlocking Acceleration for Private Enterprises

Livestock farming is one of the three main pillars of Vietnam’s agricultural sector, with an increasing contribution to the country’s overall agriculture GDP. In 2024, livestock accounted for approximately 26% of total agricultural GDP. Vietnamese consumers are estimated to consume around 8.1 million tons of pork annually, ranking fourth in the world in pork consumption, while the industry also employs millions. The development of this sector drives growth across a wide range of supporting industries, including animal feed, veterinary services, food processing, and logistics—helping to complete the agricultural value chain.

However, data from 2022–2023 show that FDI enterprises dominate approximately 43% of the pork supply, while domestic businesses hold only 19%. In the industrial animal feed segment, FDI enterprises account for over 60% of the total output.

In this context, Resolution 68/NQ-CP—which aims to reform mechanisms and policies to support private sector growth—acts as a “regulatory breakthrough”, focusing on core challenges faced by domestic businesses: simplifying investment procedures, removing administrative bottlenecks, improving access to resources, and creating a fair and competitive business environment.

Taking his own company as an example, Mr. Trương Sỹ Bá – Chairman of the Board of Directors at BAF Vietnam Agriculture JSC (HOSE: BAF) shared that in the past, it could take up to three years to build a new farm. Thanks to Resolution 68, this timeframe could now be reduced to just one year, greatly accelerating expansion and herd development.

This demonstrates that once barriers are removed, Vietnamese enterprises—equipped with strong foundations and ambition—can thrive and compete head-on with foreign-invested companies. The resolution not only paves the way for domestic businesses to “scale up,” but also plays a crucial role in rebalancing the market share in the livestock sector, driving fairer and more sustainable economic growth for Vietnam.

Laying the Groundwork for Major Goals

At this year’s Annual General Meeting, BAF announced its strategic shift: starting from 2025, the company will dedicate its entire revenue structure to livestock operations, targeting 450,000 sows and 10 million commercial pigs by 2030. In tandem, BAF has set priorities including strengthening biosecurity, tackling environmental challenges, optimizing production costs, and ensuring a stable supply of clean pork for consumers. With a more transparent regulatory environment and policies that encourage innovation — the key challenge for businesses now lies in turning these opportunities into concrete results.

According to the Chairman of BAF, one of the company’s most critical recent moves has been to closely collaborate with the International Finance Corporation (IFC) and Muyuan Group to adopt international livestock standards and apply advanced technologies aligned with environmental protection. Notably, BAF has implemented four-layer air filtration technology, capable of blocking viruses. Additionally, waste from pig farming is treated and collected so that no odor is released into the environment. For example, a farm with 5,000 sows and 60,000 pigs, totaling around VND 500 billion in investment, dedicates nearly VND 50 billion solely to wastewater treatment systems.

Sharing further about theВ multi-story pig farming project, Mr. Ba noted that onВ June 29, theВ Tay Ninh Provincial People’s Committee officially approved the investment policyВ for a High-Tech Multi-Story Livestock Complex consisting of four projects: two multi-story pig farms with air filtration and odor control technology (Tay Ninh 1 and 2), a livestock feed factory, and a slaughtering and pork processing plant. Following approval, BAF is continuing to work withВ provincial authorities, the Ministry of Agriculture, and the Ministry of EnvironmentВ to complete procedures related toВ Environmental Impact Assessments (EIA)В and land-use planning, in order to meet the construction conditions. Currently,В BAF has all the necessary resources ready to implement the project.

Perspective of BAF’s High-Tech Multi-Storey Pig Farming Complex Project Approved for Investment Policy by Tay Ninh Province

In addition, BAF’s entire Feed – Farm – Food livestock value chain adheres to international standards; it has been independently assessed and certified by globally recognized organizations. From day one, BAF has been steadfast in its investment in building a complete farming chain—an approach that enables the company to optimize long-term business costs. Currently, BAF is self-sufficient in animal feed supply (which accounts for about 60% of pig farming cost), and it protects its herds through stringent biosecurity solutions. At the same time, having a self-operated value chain allows the company to control the quality of both input materials and finished products before delivering meat to consumers.

Additional Information:В 

BAF is currently one of the leading livestock companies listed on the stock exchange (HOSE: BAF). In May alone, BAF reported sales of 74,000 pigs, generating VND 550 billion in revenue. Cumulatively for April and May 2025, the company sold 134,000 pigs, earning approximately VND 1 trillion—nearly equal to the total revenue for the entire year 2023.

Also in May, BAF Vietnam signed a strategic cooperation program with the Ministry of Agriculture and Environment to jointly implement scientific and technological applications aimed at promoting the circular economy in modern livestock farming. This activity was part of the Conference on the Implementation Plan of Resolution No. 57-NQ/TW by the Politburo regarding the development of science, technology, innovation, and national digital transformation.

Minh TГ i

FILI

– 09:45 18/07/2025

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The new project, featuring a capacity of 5,000 sows and 150,000 market pigs per year, is expected to generate annual revenue ranging from VND 850 billion to VND 950 billion.

Large-Scale, High-Tech Livestock Operation

Not only is BAF investing in scale, but according to Mr. Nguyen Van Minh – Deputy General Director of BAF – the company is also prioritizing the integration of advanced livestock technologies aimed at enhancing biosecurity and environmental protection, two of the most pressing concerns in the livestock industry.

“Specifically, BAF will implement a four-layer air filtration system and a five-level intelligent biosecurity system to effectively prevent the spread of dangerous pathogens such as PRRS and PED – infectious diseases caused by viruses that severely affect pigs’ reproductive and respiratory systems. A key focus is the prevention of African Swine Fever (ASF). These measures will help establish a safe living environment for the animals, improve disease control efforts, and protect the herd amid ongoing, complex disease outbreaks.

The farm’s high-tech livestock management processes will also be automated through the use of AI applications and tools. These will monitor the pigs’ condition and weight, enable intelligent disease detection and diagnostics, and automatically regulate microclimate factors such as temperature, humidity, lighting, and ventilation—ensuring optimal living conditions for growth and development” – Mr. Minh stated.

BAF is also making robust investments in environmental safety, with the implementation of a smart deodorization and disinfection system capable of eliminating over 95% of odors and thoroughly purifying exhaust air, thereby ensuring clean and safe emissions.

Additionally, a state-of-the-art wastewater and waste treatment system will support water conservation efforts and produce organic fertilizer for agricultural use—part of BAF’s commitment to a circular economy model. This approach reinforces the company’s broader mission to promote sustainable development in both livestock farming and agriculture.

The groundbreaking ceremony for the project took place on the morning of July 17, 2025.

Implementing Group Housing Model for Sows

BAF has adopted the Group Housing model for sows — a livestock farming approach that meets international animal welfare standards set by organizations like the World Organisation for Animal Health (OIE) and the European Union.

This model will continue to be expanded across BAF’s existing and future farms. Under the Group Housing model, sows are raised in spacious environments that allow them to move freely, interact socially, and exhibit natural behaviors. At the same time, nutritional and physical activity management is scientifically monitored to maintain biosecurity and farming efficiency.

Scientific research conducted by international animal welfare organizations has demonstrated that group housing can help reduce animal stress and enhance the overall health of the herd. As a result, sows have stronger immunity and are less prone to disease, while piglets born from group-housed sows tend to be healthier and of higher weight and quality.

BAF has implemented this model and plans to expand it to more farms in the future.

In 2025, BAF is actively accelerating the rollout of new farming projects based on a comprehensive application of advanced standards — from strict disease control and modern, eco-friendly pig farming practices to ensuring a stable pork supply, maintaining food safety, and protecting public health.

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Doubling Profit Target with Nearly 900,000 Pigs Sold

According to the business plan revealed exclusively at the AGM, BAF is aiming for the target revenue of over VND 5.6 trillion, with livestock operations contributing nearly VND 5.46 trillion – a 1.69x increase over the previous year.

The company projects VND 774 billion in pre-tax profit and VND 638 billion in net profit, of which approximately VND 636 billion will come from pig farming activities. The remaining contribution comes from the feed production segment. It’s worth noting that in 2024, BAF achieved an impressive net profit of VND 319 billion, a 10-fold increase year-on-year—marking the second-highest profit in its history after 2021.

Speaking at the AGM, CEO Bui Huong Giang emphasized that despite stable top-line revenue, the sharp increase in profit is driven by a strategic shift: in 2025, 100% of operations will focus on pig farming, compared to 60% in 2024 (the remaining 40% previously came from crop trading). “Our 2025 plan is fully centered on livestock, which marks significant growth. We aim to sell nearly 900,000 pigs this year, so in reality, our livestock revenue is increasing,” she added.

Output and Margin Expectations

In 2025, BAF plans to sell over 831,000 market hogs and more than 41,000 breeding pigs, totaling 872,000 pigs. This is expected to generate approximately VND 5.5 trillion in revenue and nearly VND 1.5 trillion in gross profit, with a gross margin of about 27%.

Navigating Challenges, Leveraging Market Trends

Despite market challenges in 2024 – such as Typhoon Yagi in Northern Vietnam and outbreaks of African Swine Fever (ASF), especially among smallholders – BAF delivered strong results. According to the Ministry of Agriculture and Rural Development, Vietnam’s pork output reached 5 million tons in 2024, up 3.7% YoY, while live hog prices rose from VND 50,000/kg to nearly VND 70,000/kg, a 31–35% increase nationwide. Simultaneously, lower feed costs improved overall profitability.

With the new Livestock Law effective from early 2025, a structural shift from households to industrial-scale farming is accelerating. BAF plans to leverage this transformation by expanding operations and strengthening biosecurity to maintain herd size while executing M&A strategies to acquire new farms.

In 2025, BAF will deploy 13 new farms/farm clusters, along with 2 new a feed mill in Binh Dinh and a meat processing plant in Binh Phuoc, both already under construction.

“BAF currently operates 40 farms, not including contract farms. We’re racing against time to reach our 2030 target of 10 million commercial pigs. We’ve also received approval to invest in multi-story pig farms with a capacity of 64,000 sows, a model capable of supporting millions of commercial pigs” said CEO Giang.

Q1 2025: Exceeding Expectations

In Q1/2025, BAF recorded over VND 1.1 trillion in revenue—slightly down YoY, but with improved livestock contribution. BAF sold 160,000 pigs, and pre-tax profit reach at VND 140 billion, slightly up from the same period last year.

The AGM approved the retention of all 2024 profits, with no dividend distribution until the end of 2026. BAF requires substantial capital to build new farms and scale operations.
Chairman Truong Sy Ba explained:

“To reach our 2030 goal of 10 million commercial pigs, we’ll need VND 54 trillion in total investment. We are committed to reinvesting all profits. International partners like IFC have agreed to this strategy and understand the long-term value. Our vision is to scale significantly by 2027, after which we aim to begin distributing dividends.”

The total herbs are excepted: 900,000 pigs in 2025; 165,000 sows & 1.8 million commercial pigs in 2026; 250,000 sows & 3.5–4 million commercial pigs in 2027

Sustainability is inevitable, almost unaffected by US tariffs

On the topic of U.S. tariff policies under Donald Trump, Chairman Ba reassured shareholders that BAF would not be significantly affected.

“We import corn, soybean meal, and wheat from South America, the U.S., and the Black Sea. If tariffs rise, China – the largest buyer – may retaliate, causing prices to fall, which actually benefits us.”

BAF sees sustainability as a long-term necessity:

“ESG is easy to talk about but costly to execute,” CEO Giang noted. “However, Vietnam is committed to carbon neutrality. If companies want to survive and thrive, sustainability is no longer optional.”

“BAF invests in green and sustainable practices, and we believe consumers will increasingly recognize and support these efforts—even if it means paying a bit more.”

The AGM also approved the registration of privately issued convertible bonds on the HNX, originally sold to IFC (Bond code: BAFH2330001). Issued in March 2023, the 7-year, non-collateralized bonds carry a fixed interest rate of 5.25%/year, with a supplementary rate for early redemption or non-conversion.

In governance updates, shareholders approved the resignation of Supervisory Board members Ms. Hoang Thi Thu Hien and Mr. Nguyen Quoc Van, and elected Ms. Duong Thi Hong Tan and Ms. Tran Thi Thanh Tra, both nominated by major shareholder Siba Holdings.

All proposals presented at the 2025 AGM were passed.

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Specifically, BAF established three subsidiaries: BAF Tay Ninh 1 High-Tech Livestock Co., Ltd., BAF Tay Ninh 2 High-Tech Livestock Co., Ltd., and BAF Tay Ninh 1 Animal Feed Production Co., Ltd. The total charter capital of these three companies is nearly VND 800 billion.

These entities will develop Vietnam’s first and most modern multi-story pig farm project. With support from Muyuan – one of the world’s leading livestock enterprises – BAF is expediting legal procedures to commence construction this year. This initiative is part of the strategic cooperation agreement between BAF and Muyuan in 2024.

Located in Tay Ninh province, the 1,550-ha project will be a fully integrated complex, including four buildings that house breeding sows, market pigs, and a feed production plant.

Applying Muyuan’s multi-story livestock farming model, this mega project will feature the most advanced farming technology worldwide. It will have a total farming capacity of 64,000 sows, 1.6 million market pigs, and an animal feed production plant with an annual capacity of 600,000 tons.

14th Farm Acquisition in Just Three Months

On the same day, February 26, 2025, BAF announced the acquisition of 100% equity in Xuan Nghi Phat Co., Ltd., a company with 111 hectares of land bank and a livestock capacity of 7,500 sows. Located in Tay Ninh province, Xuan Nghi Phat has a charter capital of VND 20 billion.

Since partnering with Muyuan, BAF has completed 14 M&A transactions within just over three months. These acquisitions include land, farms, and ongoing legal procedures before construction begins.

The newly acquired farms are expected to commence operations between 2025 and 2026, with an estimated capacity of nearly 71,000 sows and 500,000 market pigs.

Currently, BAF owns over 36 high-tech farms, 9 Global GAP-certified; 2 animal feed with an annual capacity of 460,000 tons, certified by Global GAP and FSSC 22000; 65 SibaFood stores and 350 Meat Shops.

BAF’s total farming scale includes approximately 800,000 pigs, consisting of 70,000 sows and 730,000 market pigs.

BAF’s rapid M&A strategy aligns with its ambition to become Vietnam’s leading livestock company. With Muyuan’s support, BAF aims to sell over 1 million pigs in 2025 and 10 million pigs by 2030.

With live hog prices trading around VND 80,000/kg (the highest in the past three years), this is considered an ideal time for BAF to expand its market share.

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Pork prices continue to increase amid declining supply

According to BAF’s latest update, the global pork price index reached 119 points in December 2024, marking a 7% year-over-year increase. Disease outbreaks in Europe, South Korea, and Southeast Asia are slowing production growth, while U.S. slaughter restrictions and EU regulations are further driving up pork prices. These conditions have contributed to growth and profitability improvements for livestock companies.

The latest quarterly report forecasts a 1% decline in global pork production, reaching approximately 115.1 million tons due to lower output in China. In Europe, pork production is expected to decrease by 0.5% annually. Overall, pork is anticipated to trade at high price levels throughout the year.

Similarly, in China, pork prices rose by 15% in 2024 due to low supply and rising demand. While livestock profitability improved, pork production is projected to decline by around 2% in 2025, reaching 26 million tons, which is expected to support further price increases.

In Vietnam, the livestock industry ended 2024 facing major challenges from disease outbreaks and Typhoon Yagi. Despite this, the sector remains optimistic, contributing over 26% to GDP. Livestock production value is estimated to have grown by approximately 5.4% year-over-year, driven by rising live hog prices and a decrease in small-scale farming.

Total herd size increased slightly by 4%, yet still fell short of domestic demand. According to the General Department of Customs, Vietnam imported over 100,000 tons of fresh, chilled, or frozen pork in the first 11 months of 2024, valued at $228 million (down 17.2%). The country currently imports pork from more than 40 markets, primarily Brazil, Russia, and Canada.

ASF Outbreaks and Regulatory Challenges Impacting Supply

Regarding the African Swine Fever (ASF) situation, industry representatives reported the emergence of a new chronic strain that is reducing the number of healthy pigs. Global ASF developments are expected to remain complex in the near future.

In Vietnam, ASF continues to spread with multiple new variants. Nearly 1,600 new outbreaks were recorded nationwide – up 79% year-over-year in 48 provinces and 2.5 times higher in 20 provinces. This is expected to put further pressure on pork supply.

During Q4, ASF, coupled with the aftermath of Typhoon Yagi and the new Livestock Law effective from January 1, 2025, severely impacted pork supply. Many farmers rushed to sell pigs before shutting down operations, temporarily increasing supply and driving year-end prices down. Pork prices remained stagnant during the Tet holiday due to additional disease outbreaks, including foot-and-mouth disease.

However, pork prices have been rising after New Lunar Year, reaching nearly VND 73,000/kg due to supply shortages. In southern Vietnam, where illegal imports from Cambodia influence the market, prices have surpassed those in the north. This trend suggests a structural supply shortage rather than a temporary fluctuation. As a result, pork prices are expected to continue rising.

In the animal feed market, prices of most raw materials have declined compared to the previous year- imported corn is down 16%, soybeans down 18%, and wheat down 21%. This trend is primarily due to a reduction in total livestock numbers, which benefits large-scale producers.

Doubling Profits in 2025 and Aggressive M&A Strategy

Following a strategic partnership with Muyuan Group in November 2024, BAF successfully acquired 13 companies within just over two months. These acquisitions include land and farm facilities, with legal procedures currently underway before full-scale construction begins.

The expansion aligns with BAF’s ambition to reach 10 million commercial pigs by 2030. According to Mr. Ngo Cao Cuong, Deputy CEO of BAF, the company is negotiating to acquire an additional 10-12 companies in preparation for 2026. Meanwhile, newly built farms are expected to be stocked with pigs in 2025.

“If opportunities and resources align, we may even reach the 10 million pigs before 2030. We cannot outline a fixed M&A plan – whenever suitable land and farms are available, we will proceed with acquisitions. Currently, BAF is negotiating to purchase 10-12 more farms for the upcoming growth phase,” said Mr. Cuong.

Regarding financial targets, Mr. Cuong stated that detailed plans would be disclosed at the 2025 Annual General Meeting. However, initial projections suggest that BAF plans to sell 900,000 to 1 million commercial pigs, generating approximately VND 6 trillion in revenue (based on a price range of VND 55,000-60,000/kg). The profit target is set at 2.5 times the realized profit in 2024. Additionally, BAF will continue narrowing its focus, exiting the agricultural commodity trading segment due to its low-profit margins.

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“If current price levels hold, actual profits could be even higher,” Mr. Cuong added.

Long-Term Vision: Transforming into a Food Company by 2030

Beyond 2030, BAF aims to reposition itself as a food company, offering higher-margin products. To support this shift, the company plans to commence construction of a processing plant in Binh Phuoc soon.

“BAF is currently positioning itself as a livestock company until 2030, or possibly earlier. After 2030, we will transform into a food company, supplying ready-to-eat and ready-to-cook products. For now, we are developing the 3F model (Feed-Farm-Food) to meet immediate market demand. By April-May 2025, we will break ground on a processing, slaughtering, and central kitchen plant in Binh Phuoc. The land acquisition and investment approval process have been completed, with over VND 100 billion invested several years ago.”

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Specifically, BAF acquired 60% stakes in Nhat Quyet Livestock Co., Ltd. and Minh Phat Livestock Co., Ltd., which owning an area of 14.6 ha and 15.5 ha respectively, with livestock scale of 4,500 sows per company. Both companies have registered capital of 60 billion VND and are located in Binh Phuoc province.

After signing a strategic partnership with Muyuan Group (a world-leading livestock corporation), BAF has conducted 13 acquisitions in the past two months. These companies own land and facilities and are completing legal procedures before commencing construction.

These farms are expected to be operational from 2025-2026, with an estimated capacity of nearly 63,000 sows and 500,000 market hogs.

Currently, BAF owns over 36 high-tech farms, including 9 certified with Global GAP standards. It also operates 2 animal feed factories – capacity of 460,000 tons per year (certified Global GAP and FSSC22000), 65 SibaFood stores and 350 Meat Shops. BAF’s total herds has reached over 550,000 pigs, equating to an annual capacity of 1 million commercial pigs.

This continuous M&A activity aligns with BAF’s strategy to become Vietnam’s leading livestock company. With Muyuan’s support, BAF is confident in achieving sales of over 1 million pigs in 2025 and 10 million pigs by 2030.

In the context of the Livestock Law effect from January 1, 2025, this is considered a very suitable period for BAF to increase market share.

Impacts of the Livestock Law Effective January 1, 2025

The Livestock Law prohibits livestock farming in unauthorized urban and residential areas from January 1, 2025. Tens of thousands of small-scale farms that fail to meet the standards will have to close or relocate.

In Dong Nai province, 1,979 establishments have ceased operations or relocated. By December 31, 2024, 1,971 ceased farming, and the remaining relocated to rural areas.

In Chau Duc district, 1,005 farms in restricted areas must cease or relocate by December 31, 2024. Among them, 740 farms with livestock weighing over 500kg are eligible for relocation support, with 70% ceasing operations as of December 16, 2024. In Bac Ninh province, 4,947 farms are in restricted areas and subject to relocation.

This regulation aims to align with international practices, enhancing livestock quality while reducing disease risks and environmental impact. However, relocations have impacted pork supply, driving prices up by 15% (from 61,000 VND/kg to 70,000 VND/kg). Prices are expected to rise further approaching Lunar New Year, presenting growth opportunities for modern livestock companies like BAF.

“Founded in 1992 in Nanyang, Henan province, Muyuan Group has developed a vertically integrated livestock production chain, including feed processing, pig farming, slaughtering, and meat processing. Its main products are commercial pigs, breeding pigs, piglets, and pork

Muyuan Group has total assets of 210 billion CNY (29.4 billion USD) and employs 140,000 people. Its subsidiary, Muyuan Foods Co., Ltd., operates pig farms in 218 counties across 104 cities in 24 provinces in China. In 2023, Muyuan supplied nearly 64 million pigs to the market, ranking as the world’s largest producer.”

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Specifically, BAF purchased a 95% stake in Khuyen Nam Tien in Dak Lak for VND 47.5 billion (the company has a charter capital of VND 50 billion).

On the same day, BAF acquired 49% of the shares in five other companies in Quang Tri, including Toan Thang HT, Hoang Kim QT, Viet Thai HT, Hoang Kim HT-QT, and Thanh Sen HT-QT. Each acquisition involved 171,500 shares, representing 49% of the charter capital.

During an investor meeting on November 7, BAF’s CFO, Mr. Ngo Cao Cuong, shared that the company intends to acquire full ownership of all these six companies. For the five companies where BAF acquired 49%, it clarified that these companies have land reserves, are completing legal formalities, and BAF plans to acquire the remaining shares after these processes are finalized.

“BAF’s plan is rapid and large-scale expansion. By 2025, we aim to invest around VND 3 trillion to build approximately 15 farms. If construction falls behind, we will lease or seek investors with land and capital to build according to BAF’s model, which we would then lease back.”

BAF is reportedly speeding up farm construction and leasing as demand exceeds production. If the company cannot keep up, it will sell piglets to farmers to optimize costs and profit.

Pig Supply decrease

BAF disclosed that October 2024 saw a dip in pig prices due to a market surplus caused by companies and farmers selling pigs in response to disease outbreaks and damage from Typhoon Yagi, which left many farms without facilities. Additionally, the Livestock Law, effective January 1, 2025, will require many small farms to relocate, potentially reducing herd numbers. Setting up new farms to meet biosecurity and veterinary standards is challenging, meaning the displaced stock will not easily be replaced.

The company indicated that many units imported Great Grand Parent pigs in 2024, but seeding them to market hog weight will take nearly three years. Therefore, in 2025 there will not be many market hogs from these units, and it will not be until 2026.

Pork production in 2024 expected to decrease by 20% compared to 2023. A potential shortage could persist in the first half of 2025.

“Pig prices have recently hit a low but are rebounding. We expect a price increase toward year-end, maintaining high pricein the first half of 2025. In October, BAF sold 46,000 pigs, generating revenue of VND 337 billion. Year-to-date, we’ve sold 486,000 pigs, doubling last year’s figures with revenue nearing VND 2.7 trillion. Given the limited supply, BAF will increase pig sales in the coming months.”

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BAF Vietnam Agriculture Joint Stock Company (BAF, the Company) has just released its Q3 2024 Consolidated Financial Statement, showing significant growth in livestock operations. This growth is likely a result of continuous herd expansion throughout recent periods. BAF’s total herd has reached over 520,000 pigs, a 73% increase since the beginning of the year, with a commercial pork production of approximately 1,000,000 pigs.

In Q3 2024, pork production reached nearly 163,000 pigs, with market hogs making up the majority, a 114% increase compared to last year. The pork sales revenue reached almost VND856 billion, 2.3 times higher than the previous year. Cumulatively, in the first 9 months of 2024, total pork production exceeded 422,000 pigs, corresponding to revenue of nearly VND2,275 billion, 1.5 times the pork production and 1.9 times the revenue of pork sales for all of 2023.

Net Revenue in Q3 2024 was recorded at VND1,314 billion, an 8% increase year-over-year, with the Sale of animal husbandry products reaching nearly VND856 billion, representing 65% of Net Revenue. The Company benefited from securing feed supplies through two ‘vegan’ feed mills certified by GLOBAL GAP and FSSC 21000, coupled with a 10-20% decrease in raw feed material costs, which helped lower the Company’s Cost of goods sold (COGS). COGS rose by only 2%, lagging behind Revenue growth. Gross Profit reached nearly VND223 billion, a 55% growth year-over-year, with a GPM of 17% and the GPM of animal husbandry products reaching as high as 25%. Profit before tax (PBT) exceeded VND67 billion, a 63% rise from last year.

Source: BAF

In the first 9 months of the year, Cumulative Consolidated Net Revenue reached VND3,927 billion, an 8% increase year-over-year. Revenue structure saw a shift, with the Sale of animal husbandry products accounting for 58% of Net revenue, a significant rise from 25% in the same period last year. COGS was recorded at VND3,418 billion VND, increasing at a slower rate than Revenue growth

Gross Profit reached nearly VND509 billion, marking a 70% increase year-over-year, with the GPM improving to 13% from 8% in the same period last year. The GPM of animal husbandry products reached 21%. Administrative expenses increased slightly due to the addition of new operations, including Hai Ha Farm – the most significant farm complex in northern Vietnam, with a capacity of 5,000 sows and 60,000 market hogs – alongside several other farms.

PBT reached nearly VND275 billion, a 364% increase compared to last year.

As of the end of June 2024, the Company’s Total Assets reached nearly VND6,949 billion, an increase of 7% compared to the beginning of the period. Inventory recorded VND2,068 billion, a 30% growth, including various types of pigs that will be released to the market, in the context of expected pig prices rising above VND65,000 /kg soon.

Short-term receivables amounted to VND332 billion, a decrease of 62% compared to the same period last year, as part of the initiative to reduce agricultural business activities.

Long-term assets under construction reached VND1,091 billion VND, an increase of 21%, including farms expected to be operational in early 2025. Short-term and long-term debts amounted to VND1,867 billion, including a convertible bond issued to the International Finance Corporation (IFC) at an interest rate of 5.25% per annum for 7 years.

BAF’s financial indicators reflect a stable economic position, with the Current Ratio and Quick Ratio standing at 1.3 and 0.4, respectively

Strategic partnership signed with Muyuan – Leading Global Livestock Group

On September 16, 2024, Muyuan Foods signed a strategic partnership with BAF to transfer technology and innovative farming equipment, integrating artificial intelligence into the livestock chain operation process to ensure biosecurity and environmental friendliness. This marks Muyuan’s first strategic partner outside of China.

BAF is expected to access and implement core farming technologies such as constructing high-rise barns, precision feeding, management systems, and odor control to optimize costs and minimize disease risk, thereby significantly improving profits soon.

BAF was honored with two awards in October: “Outstanding Livestock Enterprise in Waste Management Technology” and “Outstanding Enterprise in Biosecurity Livestock” at the 2024 Vietstock Awards.

The Livestock Department organized the 2024 Vietstock Awards under the Ministry of Agriculture and Rural Development. The awards also demonstrate the capabilities of enterprises in researching and developing technologies and valuable solutions to address issues in the Vietnamese livestock industry. The Award Council applied stringent evaluation criteria to identify the most outstanding candidates in Vietnam and the region.

To achieve these accolades, BAF met all criteria, including compliance with legal regulations on quality management, applying advanced and environmentally friendly technologies, and ensuring biosecurity, disease control, and food safety. Additionally, the award prioritized enterprises that made significant contributions to social support activities and other community initiatives.

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The Hai Ha farm is considered the largest mega farm in Northern Vietnam, and it was put into operation after meeting the strict selection standards of both the IFC and BAF. It utilizes state-of-the-art tunnel barn technology that meets the highest standards in Vietnam. The equipment, automated management systems, and wastewater treatment facilities are imported from leading corporations in Europe, America, etc., to optimize production efficiency and reduce operating costs.

Located in Hai Ha District, Quang Ninh Province, on nearly 50 ha, the Hai Ha farm is surrounded by mountains and isolated from residential areas, providing ideal conditions for “biosecurity.” The farm implements a strict “quarantine belt” following leading global modern farming standards to ensure the highest level of biosecurity.

To minimize the disease risk, workers undergo a disinfection and isolation process 24 to 48 hours before farm entry. The automatic feeding system, controlled through a central system, reduces human-animal contact, limiting disease transmission and significantly cutting labor costs. The temperature inside the barns is maintained at a stable level thanks to weather sensors integrated with IoT technology, ensuring an optimal environment for livestock development.

Image of the barns at the Hai Ha farm complex

The Hai Ha farm has a capacity of 5,000 sows and 60,000 market hogs, and it is expected to contribute over VND750 billion in annual revenue to the company (depending on market pig prices). Since early 2023, BAF has focused on building large-scale farm complexes to optimize advantages such as minimizing logistics costs, reducing losses during transportation, and limiting disease to ensure livestock health. The Hai Ha farm is expected to operate with around 150 – 160 workers, lower than the industry average of 210 for farms of similar scale.

The investment cost for the Hai Ha farm complex is approximately VND600 billion, saving about 10% compared to the cost of building three separate farms.

Overview of the Hai Ha Mega Farm

The Hai Ha farm has a modern water and waste treatment system. Pig waste is handled using a scraping system and transferred to composting towers. These towers apply biotechnology for biogas fermentation, followed by high-tech filtration, allowing for reuse. The resulting organic fertilizer enriches the high-quality rice fields owned by Tan Long Group.

The continuous launch of new farms marks a significant milestone in BAF’s strategy to become a leader in modern livestock farming. BAF has operated 36 high-tech pig farming facilities across the country, increasing the company’s total herd to over 500,000 pigs and producing nearly 1 million market pigs annually. The company plans to introduce and operate six new farm complexes with advanced technical standards from 2024 through early 2025.

A strategic partnership with Muyuan aims to position BAF among Vietnam’s Top 3 leading livestock companies.

Recently, BAF signed a strategic cooperation agreement with Muyuan Foods Co., Ltd., a leading livestock and food corporation, to receive technology transfers for innovative farming equipment and integrate AI into its livestock chain operations. Muyuan Foods (China) is one of China’s top livestock companies, with over 30 years of experience in the 3F closed-loop farming model (from farm to table). In 2023, Muyuan supplied 63 million pigs, surpassing the total pig production of Vietnam.

Muyuan will support BAF in the following areas: designing barns and equipment based on Muyuan’s technology; designing feed mills with Muyuan’s equipment and technology; designing and consulting on standard laboratory facilities; advising on and transferring environmental treatment technologies; providing management consulting, operational support, and team development training; and implementing intelligent farming equipment.

The technological cooperation and support from Muyuan will enable BAF to comprehensively upgrade its closed-loop system from animal feed production plants to farm models. This collaboration will help minimize disease risks, protect the health of the pig herd, and improve business efficiency. Additionally, BAF can learn and apply core farming technologies such as building multi-story pig barns. With these advancements, BAF aims to reach 450,000 sows and 10 million market hogs by 2030, positioning itself as a leading livestock company in Vietnam.

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One of the critical aspects of the cooperation agreement between BAF and Muyuan is the transfer of intelligent livestock technology. The company stated that in the 4.0 era, applying advanced technologies, automation, digital transformation, and artificial intelligence in livestock farming enhances production efficiency, optimizes resources and ensures biosecurity and environmental safety in line with global standards.

In collaboration with Muyuan, BAF aims to comprehensively improve its closed-loop system, from animal feed factories to livestock farming models. With Muyuan’s extensive experience and successful implementation of biosecurity management measures in China, BAF will learn and apply these practices effectively in Vietnam. This will help minimize the risk of disease outbreaks, protect the health of the pig herd, increase business efficiency, and ensure a stable supply for the market.

In addition,the livestock industry’s development has significantly impacted the environment, from water resource usage to greenhouse gas emissions. However, according to BAF, the advanced technologies transferred from Muyuan will enhance livestock waste management, enabling effective recycling and resource utilization. This will help reduce negative environmental impacts, develop a circular economy chain, and lay a solid foundation for sustainable development – an objective that is increasingly prioritized by businesses and organizations worldwide.

“Muyuan is confident in its ability to support BAF in achieving its goal of expanding the scale to 450,000 sows and 10 million market hogs by 2030. We believe that through this collaboration, both parties can provide Vietnamese consumers with clean, fresh, and safe food while jointly promoting the prosperity and development of the livestock industry in Vietnam. Together, we aim to create a greener, healthier environment and a more prosperous society,” said Mr. Gao Tong, CFO of Muyuan Group.

Mr. Truong Sy Ba, Chairman of the Board of Directors at BAF, also stated: “The partnership between BAF and Muyuan marks the beginning of a new journey for the future. We aim to stop the transfer of farming technology, biosecurity, and environmental solutions and expand our collaboration into many other areas. Together, we will continue to drive the modernization and innovation of the livestock industry.”

The new farming technology enables the goal of raising 10 million market hogs by 2030

According to the published information, Multi-storey Pig Farming Pattern is one of the most critical technologies that Muyuan will transfer to BAF.

Mr. Gao Tong explained that this model has been in China for a long time, with each floor serving a specific purpose. A typical facility consists of 6 floor: floor 5 and 6 are used for breeding sows; floor 3 and 4 are for newly newborn piglets and feeder pigs; and the bottom 2 are for market hogs. This scale allows for efficient management, especially in terms of biosecurity.

Muyuan’s farm also employ advanced waste gas treatment technology. According to a group representative, the system features 4 layers of filtration to ensure the air meets ICU standards before it enters the barn. The airflow is carefully calculated to deliver the precise amount needed inside. Once inside, the gases are accumulated and passed through a separate treatment system, where they are sanitized to a specific standard before being released outside.

Multi-storey Pig Farming Pattern

“Muyuan has numerous farms spread out, and our odor control technology always meets standards, whether in residential areas or more remote locations,” said by Muyuan representative.

More importantly, the Multi-storey Pig Farming Pattern offers many advantages, allowing Mr. Truong Sy Ba to envision even more ambitious goals. At the event, Mr. Ba mentioned that BAF’s target for 2030 increased from 6 million to 10 million market hogs and 450,000 sows.

“This is an ambitious and extremely challenging goal. However, in the context of the African swine fever outbreak, it poses a significant threat to food security. Without companies like ours expanding and managing operations, if the pig population cannot control the disease, there will be a supply shortage, and pork prices could rise to VND100,000/kilogram.”

“We are determined to turn the African swine fever crisis into an opportunity. In reality, no one wants an outbreak. But now that it’s here, we must act,” Mr. Ba shared.

He explained that this goal was set higher following the collaboration with Muyuan.

“Muyuan’s technology offers many advantages. Firstly, it significantly reduces production costs. Secondly, it addresses land use. Compared to conventional methods, Muyuan’s farming technology reduces land costs by 50-70% compared to traditional single-story buildings and even more with multi-story structures. Additionally, filtration systems are in place to ensure biosecurity. Muyuan representatives shared that the odor is filtered to ensure no smell.

Based on this determination, the partnership is a strategic move and a turning point for BAF’s next development steps. It represents a competitive advantage – being a pioneer and staying ahead will significantly enhance competitiveness. Currently, the major competitors in the market are not the large corporations but the small-scale operations. As these smaller players decrease, we aim to capture the market share they leave behind.”

According to Mr. Ba, to achieve the goal, BAF will need to build barns each year to accommodate approximately 1.5 to 1.8 million pigs, which will be introduced in the following years. This figure is equivalent to constructing 12 farms like the Hai Dang complex in Tay Ninh, which has a capacity of 5,000 sows and 60,000 market hogs.

“Currently, BAF operates several large-scale farms such as Hai Dang (Tay Ninh, already operational), Hai Ha (Quang Ninh, soon to be operational), and Giai Xuan (under construction, set to be completed by the end of 2024). Each of these farms supplies 130,000 to 150,000 market hogs annually. This means we must build 11 to 12 farms similar to Hai Dang.”

A complex like Hai Dang is built on about 50 ha. However, the multilayer barn design uses only 25 ha of the area. This means that the land area of Hai Dang can accommodate 2 such farms, resulting in double the production capacity.

“At first, there was some hesitation in protecting the herd, but Muyuan’s livestock technology includes stringent protective processes, ensuring optimal cost-efficiency. Therefore, BAF is fully confident in expanding to a scale of 10 million market hogs. Additionally, the savings on land and support from financial institutions and international banks provide us with the strong financial resources needed to achieve this vision.”

Muyuan Group is located in Nanyang city, Henan province. After over 30В years of development since its establishment in 1992, it has formed a pork industrial chain that integrates feed processing, pig breeding, pig raising, pig slaughtering, and meat processing. Its main products include commercial pigs, breeding pigs, piglets, and pork

Muyuan Group owns a total asset of 210 billion yuan (USD 29.4 billion) and has 140 thousand employees to date. One of its subsidiary Muyuan Foods Co., Ltd. went public in 2014 with its pig farms distributed in 218 counties/districts in 104 cities of 24 provinces/autonomous regions across China. In 2023, Muyuan has supplied about 63.82 million pigs to the market, ranking first in the world

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