November 25, 2024

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Orion Food Vina CEO Park Se-yeol (left) and Vietnam National University of Agriculture Vice President Pham Van Cuong (center) pose for a photo after a signing ceremony in Hanoi, Thursday. (Orion)

Orion, a South Korean confectionery manufacturer, said Friday that it has teamed up with Vietnam National University of Agriculture in a bid to secure quality raw materials for its snack production in Vietnam.

Orion Food Vina, the confectioner’s Vietnamese unit, and the Institute of Argo-Biology under the VNUA signed a strategic partnership agreement on Thursday in Hanoi, stipulating their cooperation in production, development, supply and quality control of seed and raw potatoes over the next 10 years.

The two parties agreed to focus on developing new potato varieties that are suitable for farming in the Vietnamese environment.

Since 2008, Orion Food Vina has been manufacturing potato snacks made from locally grown potatoes. Orion's O'Star holds the largest share in the Vietnamese potato chip market.

By establishing its first local production facility in Ho Chi Minh City, Orion entered the Vietnamese market in 2006. Its second factory was set up in the capital Hanoi in 2009.

In Vietnam, Orion has diversified its product portfolio spanning from rice crackers and bread products to milk and beverages, along with its flagship product Choco Pie.

In 2022, Orion Food Vina became the first South Korean company in Vietnam to post annual sales exceeding 400 billion won ($299.8 million).

“Through this agreement, we expect to secure a stable supply chain for quality raw materials, while also contributing to the development of agriculture in Vietnam,” said an Orion official.

"We will continue our efforts to provide delicious and quality products to Vietnamese consumers and to make contribution to the local community."

By Hwang Joo-young (flylikekite@heraldcorp.com)