Food processing industry attracts investors
Vietnam's food processing industry has expanded in recent years, drawing domestic and foreign investors.
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| Minister of Industry and Trade Nguyen Hong Dien speaks at the groundbreaking ceremony of the Vinabeef Tam Dao livestock and beef processing complex on March 8. |
More major investors
The Vinabeef Tam Dao livestock breeding and beef processing complex was inaugurated in the northern province of Vinh Phuc on March 8. A joint effort between Vinamilk affiliate Vilico and Japan’s diversified conglomerate Sojitz, the complex sprawls over 75.6 hectares in Tam Dao. It includes a farm of 10,000 cattle and a chilled beef processing plant with an annual capacity of 30,000 head of cattle or 10,000 tonnes of product. It is expected to commence operations in 2024 with chilled beef products using Japanese technology under the brand name Vinabeef.
This is the first investment and cooperation project between leading Vietnamese and Japanese corporations in high-tech agriculture. Sojitz Corporation President Masayoshi Fujimoto said this project is promising for at least the next 5-10 years. “Evaluating Vietnam’s beef market, there is still a lot of space for development and demand for high-quality meat products,” he said at the launch. “We believe the project will be a breakthrough in the market once it goes into operation.”
According to the Ministry of Industry and Trade’s Industry Agency, food processing is one of the fastest-growing industries, accounting for more than 20 per cent of all Vietnam-based annual manufacturing revenue. The number of food and beverage manufacturers in Vietnam has increased rapidly, including prestigious brands such as Vinamilk, TH Truemilk, Nutifood, Masan, Sabeco, Habeco, Kinh Do, and Hai Ha, among others.
Vietnam has signed free trade agreements (FTAs) that have drawn production and trading investment by a growing number of leading foreign and international food and beverage brands, including Coca-Cola, Pepsi, Heineken, Tiger, Carlsberg, Sapporo, Orion, Friesland Campina, and Nestle, among others.
Mergers and acquisitions have also contributed to developing Vietnam’s food processing enterprises, and more are expected. The Republic of Korea’s (RoK) CJ Group bought a 65-per cent stake in Minh Dat Food Company and a 47.33-per cent stake in Ho Chi Minh City-based food processor Cau Tre Joint Stock Company while food-producing conglomerate Daesang Corp. from the RoK bought a majority stake in the Duc Viet Food Joint-Stock Company. Earth Chemical (Japan) bought out the A My Gia Joint Stock Company.
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| An artist’s rendition of the Vinabeef Tam Dao livestock and beef processing complex. |
Production value chains
According to Sojitz Corporation, the Vinabeef Tam Dao livestock and beef processing complex project will operate in a 4-in-1 closed process, from livestock farming to production, processing and distribution.
“The successful implementation of this important project marks cooperation between leading corporations in the two countries and affirms the strategic vision of the investors and Vinamilk’s dynamism, creativity, and resilience in terms of its ability to participate more deeply in regional and global production and supply chains. It also elevates the sustainable, green, circular, and environmentally-friendly development of Vietnam’s high-tech livestock industry,” said Minister of Industry and Trade Nguyen Hong Dien.
The Minister said the Government, the Ministry of Industry and Trade and related sectors have been formulating policies to develop Vietnam’s food production value chains.
(Source: Vietnam Economic News)
