Royal De Heus Eyes Ho Chi Minh City for Asia HQ, Boosting Dutch-Vietnamese Business Ties
Royal De Heus, a Dutch animal nutrition company, is contemplating a significant move. It is considering relocating its Asia regional headquarters to Ho Chi Minh City, Vietnam. The acquisition is expected to be finalized in the first half of 2026.
The relocation comes amidst Vietnam's growing appeal to Dutch businesses, particularly SMEs, in sectors like green energy, digitalization, and sustainable urban solutions. De Heus CEO Gabor Fluit sees this move as an opportunity to bolster Dutch-Vietnamese business ties.
However, the company faces persistent hurdles common to foreign investors in Vietnam, including lengthy and inconsistent procedures for licensing, customs, and regulatory approvals. Weak transport and logistics infrastructure also raise costs due to congestion and limited seaport capacity. Ho Chi Minh City, the intended destination, is working to address these issues. It plans to ease congestion and reduce logistics costs through metro lines and industrial transport corridors by 2035.
The acquisition includes 17 feed mills from CJ Feed & Care's operations in some Asian markets, including Vietnam. Meanwhile, Ho Chi Minh City is seeking to position itself as an international financial center. The city is overhauling its administrative system and accelerating digitalization to cut red tape, as led by the Ho Chi Minh City People's Committee.
Royal De Heus's potential relocation to Ho Chi Minh City signals growing Dutch investment in Vietnam. Despite challenges, the city's efforts to improve infrastructure and streamline procedures could make it an attractive hub for international businesses.
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