The Vietnam Dairy Products Joint Stock Company (Vinamilk) has obtained an investment license to build a US$23 million manufacturing plant in Cambodia’s Phnom Penh.

The plant, covering a total area of nearly 30,000 square meters, is a joint venture between Vinamilk and Cambodia’s Angkor Dairy Products Company Limited, to be located on plot P2-096 and P2-097 in the Phnom Penh Special Economic Zone.

Vinamilk received the investment license, granted by the Ministry of Planning and Investment, at the Vietnam – Cambodia Investment Cooperation Forum chaired by Cambodian Prime Minister Hun Sen and his Vietnamese counterpart Nguyen Tan Dung on January 13 in Phnom Penh.

The factory has a total registered capital of US$23 million, with Vinamilk holding 51 percent stake and the Cambodian company holding the remaining stake. It is expected to produce over 19 million liters of milk, 64 million jars of yoghurts and 80 million bottles of condensed milk annually.

The plant’s revenue is expected to reach US$35 million in 2015 and $54 million in 2017.

Construction is scheduled to start in the second quarter of this year, and the factory is expected to come into operation in July 2015.