U.S.-based agribusiness giant Cargill inaugurated its 11th Vietnam factory in the southern province of Dong Nai on Monday.
The $28 million Provimi Premix plant, located in Trang Bom district, has an area of 30,000 square meters and a capacity of 40,000 tons per year.
The new plant's production and warehousing capacity will increase Vietnam's premix capacities and self-sufficiency, as also improve the precision and traceability of these specialist micronutrient products, Cargill Vietnam said.
The factory is almost 95% automated, and the most advanced technology in the industry will ensure reliable quality control for partners and customers, it added.
Cargill Vietnam currently has 11 animal feed processing factories in as many localities. The other 10 factories are located in Hung Yen, Ha Nam, Nghe An, Binh Dinh, Dong Nai, Binh Duong, Long An, Tien Giang, Dong Thap and Can Tho.
A team of over 2,000 people work in its various branches and offices.
Cargill’s new Provimi Giang Dien facility will produce animal nutrition products ranging from low inclusion premixes to high inclusion basemix which contains high inclusion nutrition technology - and other additives and specialty ingredients under the brand Provimi to serve multiple customer segments including farmers of livestock, aquaculture and feed mills all over Vietnam, according to Duc Thang Pham, managing director of Cargill Animal Nutrition Thailand and Vietnam.
“Vietnam continues to be an important market for Cargill globally. This expansion is part of our long-term strategic vision for Vietnam and in line with the growth predictions for the country’s agricultural sector, and the Asia Pacific region,” said Scott Ainslie, group director for Cargill Animal Nutrition in South and Southeast Asia.
Melissa Bishop, deputy U.S. ambassador to Vietnam, said: “Economic ties between the U.S. and Vietnam have flourished since 1995. The launch of this new plant is the latest example of the strong bilateral cooperation."
Last year, U.S - Vietnam agricultural trade reached $9.8 billion. Vietnam is now the ninth largest importer of U.S. agricultural products, while the U.S. is the largest importer of Vietnamese agricultural products, according to Bishop.
“This incredible growth was possible thanks to the strong partnerships, collaboration, and commitment to long-term investment in Vietnam from companies like Cargill,” she added.
Cargill is a leading American corporation in the fields of agriculture, food, industrial products, and financial services, with more than 155,000 employees working in 70 countries across all continents. It was one of the first U.S. companies to invest in Vietnam in 1995, soon after the normalization of Vietnam-U.S. relations. Since then its has grown into a leading animal nutrition and agricultural commodity company in the country.
American agri-business group ADM, Bunge, Cargill, and France-based Louis Dreyfus are called the “ABCD” quartet of agri-business companies worldwide. 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-generated economic challenges.