Japanese company Sojitz and Vietnam’s largest dairy manufacturer Vinamilk on Wednesday broke ground on their $500-million complex for raising cows and supplying beef located in northern Vietnam, a project expected to advance Vietnam’s livestock industry.
The project, a 49-51 joint venture between Sojitz and Vinamilk subsidiary Vilico, will cover almost 76 hectares in Tam Dao district of Vinh Phuc province bordering Hanoi. Therefore, it is named Vinabeef Tam Dao.
The Japanese trading house and Vilico signed a memorandum of understanding for the project in late 2021. The joint venture expects to put the complex into operation next year, serving the Vietnamese market and exports.
As for meat supply, the project is expected to have approximately 30,000 beef cattle a year in the first phase. In the next stage, the project would supply protein-based products.
Addressing the groundbreaking ceremony, Vietnamese Minister of Industry and Trade Nguyen Hong Dien asked Vinh Phuc provincial authorities to provide full support to the project so that construction and development can take place as scheduled.
Vinamilk, considered a dairy king in Vietnam, is seeking to diversify from its mainstay business and develop the domestic beef market.
Vietnam's population of almost 100 million people consume around 500,000 tons of beef per year, according to Sojitz. The joint venture between Sojitz and Vilico has already imported beef from Japan and distributed the meat, branded Vinabeef, in Vietnam.
The Vinabeef Tam Dao project will distribute domestic beef with the same brand next year, from cattle raised at the new complex.