Nissin Foods Holdings, the Japan-based instant noodle maker, plans to invest around JPY3.4bn (USD41.5m) to build an instant noodle plant in Vietnam to meet growing demand.

The plant, located in the Vietnam-Singapore industrial park close to Ho Chi Minh City, is scheduled to start production in June 2012. A subsidiary - Nissin Foods Vietnam - will be set up by the end of month.

"Vietnam is the world's fourth largest market for instant noodles after China, Indonesia and Japan. With around 60% of its population below 30-years-old, we see this spending continuing to grow in the future," a Nissin spokesperson told just-food.

This is the first time Nissin had shifted production to Vietnam, the spokesperson added.

Nissin is no stranger to the region with long-established plants in south-east Asian countries such as Singapore and Thailand. Nissin also wants to boost its Thai operations, planning a capital injection of JPY2.5bn this month.