BAF plans 4 new subsidiaries as it pursues high-rise pig farming expansion in Hanoi

BAF Vietnam Agriculture JSC (HoSE: BAF)⁠ has approved the establishment of four wholly owned subsidiaries with a combined charter capital of VND810 billion ($30.79 million), as the company advances plans for large-scale high-rise livestock farming and meat-processing projects in Hanoi.

According to a board resolution dated Wednesday, the new entities will focus on pig breeding, poultry farming, and meat processing. They are all headquartered in Hanoi.

Among the new entities, BAF High-Tech Livestock Hanoi 1, will have charter capital of VND300 billion ($11.4 million), focusing on pig farming and breeding stock production. A second livestock unit, BAF High-Tech Livestock Hanoi 2, will have charter capital of VND30 billion ($1.14 million) and operate in the poultry sector.

BAF also established two food-processing subsidiaries: BAF Food Processing Hanoi, with charter capital of VND300 billion, and BAF Food Processing Binh Minh with charter capital of VND180 billion ($6.84 million). Both companies will specialize in meat processing and preservation.

BAF deputy CEO Truong Anh Tuan has been authorized to oversee the establishment process and manage the company’s capital contributions in the subsidiaries.

The move comes as BAF seeks to develop a high-tech livestock complex in Hanoi.

At a June 4 meeting with city officials, BAF chairman Truong Sy Ba outlined plans to build a high-tech livestock complex in Bat Bat commune, Hanoi. The project, expected to cover 220 hectares, will feature breeding facilities, slaughterhouses, and food-processing operations.

The project would incorporate multi-story pig housing, a model increasingly used in China, to address land constraints and improve biosecurity.

According to the company, each project could accommodate about 8,400 breeding sows and produce roughly 250,000 market hogs annually. BAF plans to develop between three and five such projects.

The company estimates that high-rise livestock facilities can improve land-use efficiency by five to eight times compared with conventional farming operations while reducing labor requirements and feed consumption.

BAF said the proposed facilities would operate under a circular agriculture model, integrating crop production, livestock farming and waste treatment.

Agricultural areas surrounding the farms would supply feed inputs, while treated wastewater and livestock waste would be reused for irrigation, cooling systems, odor control, and soil improvement. The company is also studying the use of captured biogas for power generation.

The Hanoi initiative follows BAF’s earlier approval to develop what it described as Vietnam’s first large-scale “pig apartment” project in the southern province of Tay Ninh. The project, estimated to require investment of around VND15 trillion ($570.13 million), is being developed in partnership with Muyuan Foods⁠, one of China’s largest pork producers.

BAF shares closed up 1.36% to VND29,800 ($1.13) each on Friday.

BAF Vietnam Agriculture JSC (HoSE: BAF) is targeting a more than sixfold increase in net profit this year as the top Vietnamese agribusiness accelerates investment in large-scale, high-tech livestock operations, positioning itself for a strong rebound after a challenging 2025.

According to documents released ahead of its AGM scheduled for April 23 in Ho Chi Minh City, BAF aims to generate revenue of VND8.43 trillion ($320.08 million), up 67% year-on-year, and net profit of VND793 billion ($36.94 million).

The ambitious targets reflect both improving market conditions and the company’s aggressive capacity expansion strategy.