Vinamilk and Sojitz Japan have started work on a breeding and beef processing complex called Vinabeef in Tam Dao, Vinh Phuc Province.
The project with total investment of VND3 trillion (US$131 million) is a joint project by Vilico (a member of Vinamilk) and Japan's Sojitz Corporation.
This is the first project in the investment and collaboration plan between the leading corporations of Viet Nam and Japan in high-tech agriculture, cattle breeding, and beef processing, with a total value of up to $500 million in cooperative agreements signed at the end of 2021.
The groundbreaking ceremony of the project is part of activities to celebrate the 50th anniversary of diplomatic relations between the two countries.
Representatives at a ceremony to officially begin construction of the project in Tam Dao, Vinh Phuc Province on March 8. — VNS Photo
In phase 1, the scale of investment capital collaboration between Vinamilk - through its subsidiary Vilico - and Sojitz Group is roughly VND3 trillion, and the total construction investment for the cluster of farms and factories in Tam Dao is VND1.67 trillion.
Chilled beef products which are processed utilising Japanese technology and sold under the Vinabeef brand are the anticipated end result of the project once it goes live in 2024.
The complex is the first to be implemented under the Memorandum of Understanding with a total value of $500 million signed between Vilico, a member of Vinamilk, Sojitz Cooperation and Vinh Phuc Province at the end of 2021.
The joint venture saw Vilico owning 51 per cent and Sojitz 49 per cent of its capital and aimed at developing the beef breeding and processing industry in Viet Nam.
Regarding the project, Vu Chi Giang, Vice Chairman of Vinh Phuc Provincial People's Committee, said the project was the province's largest in high-tech agriculture and food production-processing. With its potential, the province would create favorable legal conditions to help businesses deploy their projects effectively.
Delivering a speech at the event, Masayoshi Fujimoto, President of Sojitz Corporation, said this was a major project in Viet Nam.
The uniqueness of the Vinabeef Tam Dao lies in the fact that it is intended to be developed and operated using a closed 4-in-1 process, which includes livestock, production, processing, and distribution. By doing so, it will supply Vietnamese consumers with chilled beef that is fresh, tasty, nutrient-dense, and safe for their health.
Vinabeef's beef products are processed in an ultra-clean environment on a closed, highly-automated manufacturing line that can handle 10,000 tonnes of beef per year (equal to 30,000 beef cattle), utilising cutting-edge technology to guarantee the greatest possible levels of freshness and nutrition.
As a result, the distribution process will remain tightly managed, as it is necessary to fulfil the criteria of the chilled supply chain, and full product traceability will be maintained to guarantee the highest standards of quality and safety from farm to fork.
Mai Kieu Lien, General Director of Vietnam Dairy Products JSC (Vinamilk), and Chairman of the Board of Vietnam Livestock Corporation JSC (Vilico), said: "We expect this to be a prototypical case of collaboration between Vietnamese and Japanese businesses in the area of high-tech agriculture, focused on long-term sustainable development. In this way, we can work toward our goal of making Vinabeef a household name in Viet Nam, not just as a trusted name in the beef industry, but as a provider of high-quality foods for both domestic consumption and international export." – VNS