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Vinamilk, Vietnam’s largest dairy group, is closing its office in Cambodia but has said its production venture in the country will continue.

The company is shutting its office in Phnom Penh but said its plant in the Cambodian capital will continue production.

“We are closing Vinamilk’s representative office in Cambodia but it does not mean Vinamilk is ending its business there,” a spokesperson said. “On the contrary, Angkor Milk – a subsidiary of Vinamilk in Cambodia – has completed its building stage and currently producing Angkor milk brand UHT milk, yoghurt and condensed milk for the Cambodia market. Angkor milk also distributes Vinamilk’s products to the local market.

“Vinamilk’s representative office has effectively fulfilled its mission of being the connecting hub between Vinamilk and [its] Cambodian partners, researching the market, working with the local authorities on behalf of Vinamilk, as well as supporting the Angkor Milk factory building process, etc. Therefore, with Angkor Milk now fully operating, it is unnecessary to maintain Vinamilk’s representative office in Cambodia.”

Vinamilk formed its Cambodian venture in 2014, taking a majority stake in the plant, with unnamed Cambodian partners holding the rest of the shares.

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By GlobalData