Vingroup, widely regarded as Vietnam’s biggest privately owned company, has said it will be buying Israel technology to use in agricultural projects it is developing.

The Hanoi-based conglomerate, whose interests range from hotels to online commerce, is making a foray into agriculture, which Israeli sources said could lead to tens of millions of dollars in sales annually for intellectual property, services and equipment over the next few years.

In a press conference, Pham Nhat Vuong, Founder and Chairman of Vingroup, said that the company would begin developing large commercial farms using Israeli, Dutch and Japanese technology through a newly formed unit VinEco.

Vuong said he was impressed by the fact that Israel was yielding 300 to 700 tons of tomatoes per hectare, against Vietnam’s 30-60 tons. The aim is to supply fresh produce on a consistent basis and at low cost to its developing supermarket chain and for export. VinEco has been capitalised at around US$92 million.

It also represents a foothold for Israeli farm technology in the Vietnamese market, using the same model it has used in China in recent years by joining large agricultural undertakings that require a mix of technology, equipment and services. Industry observers say the model is better than companies trying to sell on a piecemeal basis independent of one another.