TH True Milk, Viet Nam’s largest dairy group, will invest US$220 million in dairy cow farming and dairy product processing in the Republic of Bashkortostan, Russia, Vietnam News Agency reported.

Thai Huong, chairwoman of the group, announced the investment with Rustem Khamitov, head of the Republic of Bashkortostan, during a working visit of a Vietnamese delegation to the Republic of Bashkortostan from April 22 to 24.

Referring to the investment potential of Bashkortostan, Khamitov said the country is located in the centre of Asia and Europe, with a population of over four million.

The country also has abundant resources and a developed industrial and agricultural sector, being the leader in terms of cattle and dairy cow farming in Russia.

However, Russia is currently lacking some 10 million tonnes of milk, therefore, Bashkortostan wished to attract hi-tech investors to participate in this potential sector.

Following the meeting with the chairwoman of the group, Khamitov immediately set up a working group headed by Deputy Prime Minister Irek Mukhametdinov to coordinate with TH True Milk to launch the project.

Prime Minister of Bashkortostan R.Kh. Mardanov said Viet Nam is a dynamic economy with high economic growth rate. However, trade volume between Viet Nam and the Republic of Bashkortostan had only reached a modest $15 million, so far, although the potential of Bashkortostan was immense.Therefore, Bashkortostan was willing to create favourable conditions for Vietnamese businesses to invest, he said.

Viet Nam’s Ambassador to Russia Nguyen Thanh Son also emphasised that the two sides needed to drastically promote trade cooperation, especially once the free trade agreement between Viet Nam and the Eurasian Economic Union (EAEU) officially came into effect.

The ambassador also noted that Viet Nam has a number of key export items, including agricultural products, seafood, leather shoes and textiles. — VNS