Orion, VNUA to team up for potato production

South Korea’s confectionery and snack maker Orion Corp. announced on Friday that it signed a strategic partnership agreement with the Institute of Agriculture and Biology (IAB) under the Vietnam National University of Agriculture (VNUA) for potatoes’ production and supply of seed of raw potatoes.

Both sides aim to develop new potato varieties suitable for the Vietnamese environment, focusing on quality and productivity.

Orion has been producing potato snack Ostar (Korean name Poca Chip) in Vietnam through contract farming with local farmers since 2008. It’s holding the top market share in Vietnam's potato snack market.

Orion has supported potato farming in Vietnam, initiating the Vietnam Hometown Potato Support Project in 2016 to enhance productivity and increase income for potato farmers.

Over the past eight years, Orion has contributed approximately 1.3 billion won ($970,000) in farm machinery, research facilities, scholarships, and more to local farms and the national university.

Since establishing its first local production facility in Ho Chi Minh City in 2006, Orion has expanded its presence in Vietnam. The company began operating a second factory in Hanoi in 2009, experiencing continuous growth each year.

In 2022, Orion's Vietnam subsidiary surpassed 400 billion won ($300 million) in annual sales, prompting expansion and enhancement of its facilities in Ho Chi Minh City and Hanoi to meet growing demand.

In addition to Choco Pie, Orion has diversified its product portfolio in Vietnam to include rice snack "An," mass-produced pastry "C'est Bon" and beverages.

Write to Sul-Li Jun at sljun@hankyung.com