Vietnamese dairy group Vinamilk has outlined plans to increase its capacity by 20% through the construction of two large plants in its home market.

The Ho Chi Minh-based business – Vietnam’s largest dairy company – said when the new facilities are built it will be better positioned to meet global demand for its products.

It plans to build the largest dairy plant in Hung Yen province and the Moc Chau complex in the country’s north-west.

The Hung Yen factory will have a total capacity of 400 million litres per year and will produce a variety of dairy products to increase supply to northern Vietnam and for export to other Asian countries, including China, Japan, and South Korea. The company has not revealed how much it is investing in constructing this facility.

The US$130m Moc Chau dairy complex will consist of high-tech dairy farms and processing factories. It will be implemented in two phases and will ultimately produce up to 1,000 tonnes per day.

Vo Trung Hieu, Vinamilk’s international business director, said: “With our production capacity ramped up, we are better positioned to serve the various needs of the global market. Our commitment to our customers remains strong, with the research and development of new product formulas aligned with market needs.”

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By GlobalData

Vinamilk has 13 factories and 14 farms in its domestic market. It said that over the last 15 years US$615m has been invested in its factories.

The company has also diversified into the powdered milk segment with two factories in Vietnam. One of them – the Vietnam Powdered Milk Factory – has a production capacity of 54,000 tonnes per year, manufacturing infant-nutrition products such as Dielac, RiDielac, and Optimum Gold.

Founded in 1976, Vinamilk now has 46 “subordinate units” in its home market and countries including Cambodia, the Philippines, the US and New Zealand.