Cargill to open major Vietnam animal nutrition plant in September

U.S.-based agribusiness giant Cargill will launch its newest Vietnam manufacturing facility in the third week of September, bolstering its commitment to long-term investment in the country.

The production site covers about six hectares in the southern province of Dong Nai’s Giang Dien Industrial Park - about one hour’s drive northeast of Ho Chi Minh City.

The giant announced the state-of-the-art factory project in December 2020 on the occasion of its 25th year of operations in Vietnam, saying that $28 million would be invested in the animal nutrition facility. Cargill added it has invested more than $160 million in Vietnam to build 11 animal nutrition plants, one grain and oilseed warehouse, and two aqua technology application centers for fish and shrimp, and has 1,500 employees.

Cargill has named the new plant the Provimi Factory. Founded in 1972 in the Netherlands and with more than 20 years of development in the Vietnamese market, Provimi is a global provider of products and services in animal nutrition. In 2004, Provimi acquired domestic agribusiness Nutriway Vietnam and changed its name to Provimi Vietnam, which had gradually become one of the leading premix suppliers in poultry and aquaculture farming.

In 2011, Cargill completed the acquisition of Provimi for 1.5 billion euros ($2.1 billion at that time) to become a global leader in animal nutrition with the ability to offer the broadest array of products, services and capabilities.

The Provimi Factory was built by Ho Chi Minh City-headquartered BMB Steel, a leading domestic steel structure contractor.

Cargill established its business in Vietnam in 1995 as one of the first American companies investing after the normalization of Vietnam-U.S. relations. Since then its has grown into one of the most trusted animal nutrition and agricultural commodity companies in the country.

American agri-business group ADM, Bunge, Cargill, and France-based Louis Dreyfus are called the “ABCD” quartet of companies in agri-business worldwide. Only Bunge, another U.S. corporation, has yet to enter the Vietnamese market. ADM also focuses on animal nutrition in Vietnam.

In April 2022, the Asian Development Bank (ADB) signed an agreement to provide Louis Dreyfus with a $100 million loan to help smallholder farmers in five countries, including Vietnam, recover from pandemic-induced economic challenges.