TH Group's milk project: A bright spot in Vietnam-Russia economic relations

Bright spot in Vietnam-Russia economic relations
The visit to the Russian Federation by President Nguyen Xuan Phuc and a high-ranking Vietnamese delegation in late November took place in the context of the two countries celebrating the 70th anniversary of diplomatic relations, 20 years of Strategic Partnership, and preparing to welcome the 10th anniversary of Comprehensive Strategic Partnership.
Before the trip, in an interview with the Russian press, President Nguyen Xuan Phuc affirmed: “The Covid-19 pandemic has negatively affected economic and trade exchanges and cooperation between Vietnam and the Russian Federation.

However, the good news is thatcommercial cooperationstill achieved impressive growth. In 2020, the trade turnover between the two countries reached 5.7 billion USD, up 15.2%; in the first 9 months of 2021, trade continued to increase by 4.6%, and is expected to reach about 6.5 billion USD in the whole year of 2021, up 14%".

Raw material fields in Russia. Photo: PV

One of the bright spots in Vietnam-Russia economic relations in recent years is the project of a complex of fresh milk processing factories and livestock farms.dairy cowTH Group's high-tech focus in Russia. Investing in Russia during the embargo period, TH is the image of Vietnam's largest investor in Russian agriculture.

Currently, TH's projects in Russia are being strongly implemented in Moscow and Kaluga provinces... In January 2018, TH completed the construction of part of the Dairy Farm in Volokolamsk district, Moscow province.

Despite the difficulties and obstacles caused by the embargo in the US-Russia trade relationship, TH has successfully imported 1,100 purebred HF high-yield dairy cows from the US to Russia. The herd has adapted to the living conditions, grown very well and the total herd has now reached more than 2,000.

Thanks to high-yield genes, high technology and advanced management science, the herd currently produces the highest average milk yield in Russia, about 40-41 liters/cow/day, 2.5 times higher than the average milk yield in Russia. Some cows produce 104 liters/day, many cows produce 60-90 liters/day.

There are cows that give 104 liters of milk/day. Photo: PV

With such outstanding productivity, TH's production cost per liter of milk is the lowest. The farm's raw milk is also being sold to the largest dairy companies in Russia such as Danone, Torzhok, etc. at the highest prices on the market. These are the most important indicators provingeffectiveTH project in Russia.

With the successful experience of the 1.2 billion USD project in Vietnam, after only 14 months, TH Group's products have reached Russian consumers. Continuously participating in the Worldfood Exhibition in Moscow for many years, TH's products have always won Gold and Special prizes for quality, loved by Russian consumers.
Grasp the "golden point" in business
Sharing at the Vietnam-Russia Business Forum, Ms. Thai Huong confided: I went to Russia during the period when Russia was under embargo with Western countries, Russian people were lacking milk and dairy products, which were imported from European markets.

Ms. Thai Huong affirmed: Investing in Russia is not only a way to show gratitude, but also an opportunity to seize the "golden spot" in business. Photo: PV

Some Russian TV stations at that time asked me why I chose to go to Russia at such a time. I said there were two reasons. One was to show gratitude to Russia - the country that had spared no human and material resources to help Vietnam during the war. And not only to show the noble gesture of "remembering the person who planted the tree when eating the fruit", to cherish the feelings and relations between Vietnam and Russia.Strategic Partnerbetween the two countries, but this is also a decision to seize the "golden spot" in business; with opportunities from the very high demand for milk of the Russian people, from extremely favorable natural conditions.

At that time, the Russian government, headed by President Vladimir Putin, had great policies that businesses with a thorough understanding of agriculture like TH Group could not help but step in.

“I went to Russia not to compete on the price of a glass of milk during the embargo period, but to compete fairly with milk companies on price and quality. We have been successful in Vietnam with the project of raising dairy cows and processing clean fresh milk.high technologywas implemented after the melamine-tainted milk incident in China caused kidney bleeding in millions of children.

At that time, although I did not know about milk, I outlined a strategic path and now, after more than 10 years, TH has truly become the number 1 fresh milk enterprise in Vietnam, accounting for over 40% of the fresh milk market share. That is the handbook that we brought to Russia, combining high technology with 4.0 management science, with seriousness, honesty and method", Ms. Thai Huong affirmed.

Completing the farm in Moscow. Photo: PV

Currently, TH Group is continuing to implement the Project in Russia with seriousness, professionalism andhumanityof the brand is the guiding light; creating agricultural products of international quality standards, completely from nature on the land of the Russian Federation. In parallel with continuing to build dairy farms, the group is also urgently promoting and speeding up the construction of the TH fresh milk processing factory in Kaluga province and the process of officially launching the TH true MILK brand in the Russian market.