Vietnamese dairy giant Vinamilk and Japan’s Sojitz Corporation on Wednesday broke ground on a beef cattle farming and processing complex in Vinh Phuc Province, northern Vietnam.

The project, with an estimated investment of VND3 trillion (US$127 million), will be developed in Tam Dao District, Vinh Phuc via a joint venture between Vinamilk subsidiary Vietnam Livestock Corporation JSC and Sojitz Corporation.

The groundbreaking ceremony also served as a celebration of the 50th anniversary of diplomatic relations between Vietnam and Japan.

This is the first project under a $500 million investment and cooperation agreement inked between Vinamilk and Sojitz in hi-tech agriculture, cattle farming, and beef processing.

The Vinabeef Tam Dao complex will be developed on 75.6 hectares of land with two main areas: a beef cattle farm which can accommodate 10,000 cows and a chilled meat processing plant with an annual capacity of 10,000 metric tons.

The project is expected to be put into operation in 2024 with its chilled beef being processed using Japanese technology.

Vinamilk CEO Mai Kieu Lien shared that the project will feature a four-in-one process: farming, production, processing, and distribution.

In particular, beef cattle will be raised on farms which meet Global Good Agricultural Practice standards.

Vinabeef chilled beef will be processed on a modern, closed, and highly automated line to ensure freshness and quality.

The distribution of products will be put under strict surveillance so that their origin can be traced.

Delegates kick off the Vinabeef Tam Dao beef cattle farming and processing complex project in Vinh Phuc Province, northern Vietnam. Photo: C.Tue / Tuoi Tre

Masayoshi Fujimoto, president and CEO of Sojitz Corporation, said this project will play an important role in Sojitz’s operations in Vietnam over the next five to 10 years.  

“There is still a lot of room for the development of the Vietnamese beef market because the demand for high-quality meat products is huge," Fujimoto said. 

“We believe that the project will create a breakthrough in the market upon completion."

Vietnamese Minister of Industry and Trade Nguyen Hong Dien stressed that this is the first time a project in Vietnam has been designed to employ high-technology for livestock and food processing.

“The Vinabeef Tam Dao complex marks a collaboration between leading firms from [Vietnam and Japan] and demonstrates the strategic vision of investors, as well as Vinamilk’s dynamism, creativity, and stride in deeply joining global supply chains," Dien said.

“It will also help develop Vietnam’s hi-tech livestock sector in a sustainable, green, circular, and eco-friendly manner."

The minister also asked that investors of the project help prepare resourcess and take the initiative in cooperating with local authorities to ensure its progress and the compliance with regulations on investment, construction, land, and environment during the execution.

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