Vinh Hoan ramps up projects to lay a foundation for circular economy model

In recent years, the circular economy model is Vinh Hoan’s share of efforts to mitigate impacts on the global climate change crisis. Through optimizing usage of byproduct s at every stage of the business cycle, the circular economy model converts the value-chain outputs into inputs for other value-chains.

In Vinh Hoan’s fish processing factories, large amounts of trim meat and bones are considered as byproducts, the reuse and utilizing of byproducts in aquaculture is crucial. Depending on the level of processing, more than 70% of the total fish caught is subjected to further processing before being placed on the market, resulting in large amount of approximately 20–80% waste, (*) The concept of circular economy is not only applied in processing, but also in aquaculture. Other aquaculture waste materials can also become recycled.

With a passion for innovation, creativity, and sustainability, Vinh Hoan had begun laying its foundation via several projects to bring this model to life.

Innovative projects in pangasius farming and processing

Since 2011, Vinh Hoan has established Vinh Wellness, dedicated to developing and manufacturing single-sourced collagen and gelatin. The successful production of high-value collagen peptides and gelatin products from pangasius skin is one of the remarkable breakthroughs. Currently, Vinh Wellness's production capacity is up to 3,500 tons per year. Besides utilizing fish skin for collagen and gelatin, other by-products in fish processing are used as fish oil and fish meal inputs. Currently, collagen peptides, gelatin, fish meal, and refined fish oil are among the strategic products contributing to Vinh Hoan's revenue and profit.

Aquaculture is a potential economic sector that plays a vital role in the world's food demand; however, this industry still faces challenges such as limited natural resources. How do we help farmers increase their farming yield while conserving water for future food production? To attempt to solve this challenge, Vinh Hoan has implemented the in-Pond Raceway System (IPRS).  The trough system actively feeds on-site water, regardless of the additional water supply. Water in the pond will not require to be replaced and can be used continuously. At the same time, IPRS creates a separate trough collection for fish waste during the farming process. Wastewater during fish farming is sent to biological treatment ponds for filtering. This water can be pumped into farms to serve as irrigation of crops. 

Constantly expanding the value chain   

Not only pangasius processing, Vinh Hoan also sees potential in the agricultural sector and aims to become a leading food processing corporation . In early 2021, Vinh Hoan established Thanh Ngoc agriculture food company and acquired Sa Giang food company to expand its value chain. These are two important projects to contribute to the vision of the company’s circular economy model.

By-products in the process of growing crops and processing agricultural products will be recycled to produce fertilizer.  Vinh Hoan started the construction of Thanh Ngoc agricultural factory in early 2022 and is expected to be completed in October 2022. In phase 1, the factory's capacity will be approximately 150 tons of raw materials per day, producing about 23,000 tons per year.

At the same time, Vinh Hoan’s feed factory is in its final last phase of construction and is expected to operate in the second quarter of 2022. The feed factory has a production capacity of about 350,000 tons per year.

In addition to our current value chain, Vinh Tech, a division of Vinh Hoan,   invests in companies that aim for innovation in technology for aquaculture and agriculture. Last year, Vinh Technology invested in developing the potential of insect meal through Entobel, a Singaporean-based biotech company. This is an alternative and sustainable resource for various industries including animal feed and animal health.

Madam Truong Thi Le Khanh, founder, and chairwoman of Vinh Hoan Corporation emphasized: “Vinh Hoan inspires innovation to create a sustainable future. Our success will not stop. Our relentless ambition will take us to open more possibilities.”

Source: (*) https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7923225/