By Lynda Kiernan

 

Israel-based drip and smart irrigation, and greenhouse project giant, Netafim, has signed a NIS 65 million (US$17 million) contract with Vietnam-based Vingroup’s agricultural business, VinEco. This deal marks the first deal between the two companies and the first agricultural investment on the part of Vingroup.

 

Under the terms of the agreement, Netafim will supply greenhouse structures, drip irrigation products, climate control systems, growing platforms, expertise, and agronomic and support services to VinEco as it carries out its first of many large-scale agricultural greenhouse projects with the goal of producing high quality fruits and vegetables for the Vietnamese market.

 

“This deal is one of Southeast Asia’s largest greenhouse projects and significantly strengthens our activity in Southeast Asia,” said Netafim CEO Ran Maidan. “Over the last few years, we’ve seen increased modernization in the agricultural sector in general, and in greenhouse and irrigation in particular…”

 

Founded in 1965, Netafim is a global pioneer and leader in drip and smart irrigation solutions, servicing customers in over 110 countries. This deal strengthens the company’s standing in the increasingly important Southeast Asian market. After becoming a full member of the Association of Southeast Asian Nations (ASEAN), Vietnam integrated and linked its growth and development with all of Southeast Asia, which saw its combined gross domestic product (GDP) grow to exceed US$2.6 trillion in 2015.