Hungarian meat processor Babati is to establish a joint venture with German-Vietnamese Duc Viet Food in Vietnam, Hungarian business daily Napi Gazdaság has reported on Tuesday.

Körmend-based Babati és Társa Húsfeldogozó Kft., which is one of the biggest meat companies in western Hungary, is to set up a JV with Duc Viet Food, a German-Vietnamese company (86%-14%) operating in Hanoi for years.

For the time being, the new JV will focus primarily on Hanoi, the capital and second-largest city of Vietnam with a population of over 6.2 million and Ho Chi Minh City. The metropolitan area of Ho Chi Minh City and surrounding towns, is populated by more than 9 million people, making it the most populous metropolitan area in Vietnam and Indochina.

Later, the company will build a meat processing and preserved meat producing plants specialised in Hungarian recipes.

Under the deal Babati signed with Duc Viet Food a few days ago, the Hungarian company will provide the technology for production and has also assumed the task of staff training.

Under the terms of the agreement, at least 45 meat products manufactured by Hungarian technology could be marketed in Vietnam, a country with a population of some 90 million people.

Babati was brought to life in 1991 and today it operates with a staff of 98 people, with a capacity to slaughter 50,000 hogs and roll out 10,000-11,000 tonnes of meat products a year.

The company markets its produce in five own stores and via several retail chains in Hungary.