Vinamilk cooperating with Sojitz Corporation to invest in USD500 million beef project in Vinh Phuc province

On November 25^th, 2021, in Tokyo, Japan, Vietnam Dairy Products Joint Stock Company (Vinamilk) and its member company Vietnam Livestock Corporation – JSC (Vilico) successfully signed a Memorandum of Understanding (MoU) with Sojitz Corporation of Japan and the People’s Committee of Vinh Phuc province on the investment and development of projects concerning beef in Vietnam.

The exchange between the parties took place at Vietnam-Japan Investment Promotion Conference with Prime Minister Pham Minh Chinh’s attendance on his official visit to Japan from November 23^th to 25^th. Ms. Hoang Thi Thuy Lan, Secretary of Vinh Phuc Party Committee and Mr. Vu Chi Giang, Deputy Chairman of Provincial People’s Committee represented Vinh Phuc to attend the conference.

The project has a total investment of approximately USD500 million used for R&D-production-processing-distribution in Vietnam and for export. The first phase of the project is expected to come into operation in 2023 with a capacity of approximately 20,000 beef cattle/year (equivalent to 10,000 tons/year), a closed processing facility equipped with modern technology. The cooperation scale between investors is approximately VND 3,000 billion, of which the total project investment in Vinh Phuc province is VND 1,670 billion (around USD 74 million).

The second phase is expected to expand the total investment up to USD500 million with a focus on meat packaging, the production and trading of different types of meat, the establishment of a protein food R&D center and a factory dedicated to processing high-grade meat products.

Together with advantages of industrial development, Vinh Phuc province has many potentials for agricultural development, especially for livestock and processing, including: The good leadership of provincial authorities; The residents’ obedience; The comprehensive development of rural economy; The province’s favorable position. In addition, industrialization and urbanization has made Vinh Phuc an enormous market for agricultural product consumption.

This project is expected to lay a solid foundation for new development of the livestock industry and the processing of safe and high-quality meat products in Vietnam in the coming years. The project is in line with the Livestock Development Strategy in the period 2021-2030, with a vision to 2045 of Vinh Phuc with the following objectives: Putting a focus on livestock development in the direction of industrial and commodity farms; Applying advanced technology, high technology; Concentrating on livestock products with competitive advantages; Ensuring biosecurity and disease safety in accordance with the linkage chain; Protecting the ecological environment; Improving productivity, quality and food safety.

The Memorandum of Understanding shows the importance of commercial cooperation between businesses of Vietnam and Japan, elevating the strategic relationship between the two countries not only in politics but also in economy./.