Vinamilk, Vietnam’s largest dairy processor, has received approval from the Cambodian government for a new plant in the country.
The company said yesterday (13 January) it had been sent an “overseas investment certificate” from Cambodia’s Ministry of Planning and Investment for its plans for a factory in Phnom Penh, the country’s capital.
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The Vietnamese dairy giant’s move is an indication of the growing demand for milk based products across south-east Asia. Vinamilk already exports products to Cambodia, sales that are estimated to be worth US$40-50m annually alone.
The new plant will process dairy products for the Cambodian market. It will have a capacity of 19m litres of liquid milk, 64m jars of yoghurt and 80m cans of condensed milk, Vinamilk said.
Vinamilk will own 51% of the plant to be run by a new venture called Angkor Dairy Products Co. Unnamed Cambodian partners will hold the rest of the shares in the venture. The shareholders are investing a total of US$21m in the plant.
Official approval for the venture is the latest stage in Vinamilk’s plans for international expansion.
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By GlobalDataLast month, Vinamilk has secured a licence from its own government to invest in US firm Driftwood Dairy.
