Vinamilk increases investment capital for project in Cambodia to 42 million USD

On November 8, Prime Minister Pham Minh Chinh and many Ministers and members of the Government visited and worked at the Vietnam - Cambodia Investment and Trade Promotion Forum 2022 in Cambodia. Within the framework of the forum, large Vietnamese enterprises investing and cooperating in Cambodia introduced to the Prime Ministers of the two countries their business performance results and outstanding projects. Among them was Angkor Milk Company Limited (Angkormilk) - a 100% invested subsidiary of Vietnam Dairy Products Joint Stock Company (Vinamilk). This unit invested in building the first modern milk factory in Cambodia in 2014 and is providing many nutritional products to this market.

At the Angkormilk product display booth within the framework of the forum, Mr. Doan Quoc Khanh - General Director of Angkormilk introduced to the Prime Ministers of the two countries the key products in the Cambodian market as well as reported on the business and investment situation of the enterprise. Specifically, Angkormilk will increase the total investment capital for projects in Cambodia to 42 million USD according to Decision No. 1154/QD-TTg dated September 30, 2022 of the Prime Minister. Accordingly, Vinamilk - Angkormilk will invest in a dairy farm using the world's advanced technology, aiming to produce milk in the next 2 to 3 years, with a raw milk output of over 4,000 tons/year. This will be a typical farm for the high-tech dairy farming industry in the Kingdom of Cambodia.

Prime Minister Pham Minh Chinh visited Angkormilk's booth at the Vietnam - Cambodia Trade and Investment Promotion Forum 2022.

This project is considered a new milestone in the development of Vinamilk – Angkormilk in Cambodia as well as enhancing the comprehensive, sustainable and long-term cooperation relationship between Vietnam and Cambodia, contributing to bringing great strides to the dairy industry and dairy farming in this kingdom.

Angkormilk representative also added that the company is planning to expand the factory area at Angkormilk Factory, increasing production capacity to 90 million liters of all kinds per year, to meet the increasing demand for milk in the Cambodian market.

In January 2014, Angkormilk was granted an investment license to build a milk factory in the capital Phnom Penh. Two years later, Vinamilk and Angkormilk inaugurated the factory with the most modern international standards on technology, environment and food safety. This is also the first milk factory in Cambodia with a total area of ​​nearly 3 hectares, an initial investment of 23 million USD, a designed capacity of 59 million liters of sterilized fresh milk/year, 144 million units of yogurt and condensed milk products/year. Every year, the factory produces about 50 million liters of various types of milk, creating jobs for more than 500 workers in Cambodia.

In the first 9 months of 2022, net revenue from Vinamilk's foreign branches reached VND3,243 billion, up 25.2% over the same period. Of which, Angkormilk increased by 19% thanks to effective market development activities and has always been in the list of subsidiaries with outstanding growth rates at Vinamilk. In 6 years of operation, Angkormilk's total revenue reached 310 million USD.

Strengthening the operations of foreign branches

After achieving success in the Vietnamese market, Vinamilk has actively invested in foreign branches. Besides Angkormilk, Vinamilk has two other subsidiaries: Driftwood (USA), Lao-Jagro Development (Laos) and the Del Monte - Vinamilk joint venture (Philippines) - 50%.

Driftwood became a subsidiary of Vinamilk in December 2013. By May 2016, Vinamilk increased its ownership in this company to 100%. Driftwood is one of the long-standing dairy producers in Southern California (USA) with a product portfolio including fresh milk, yogurt, ice cream, and fruit juice. The Company's customers include schools, restaurants, hotels, distributors, etc. in the Southern California area. In the first 9 months of 2022, Driftwood recorded outstanding revenue growth, contributing positively to the Group's consolidated revenue results.

Driftwood is Vinamilk's second foreign investment deal.

For Lao-Jagro, Vinamilk officially became the parent company in July 2018 and created a new turning point with the development of the Dairy Farm Complex project in Laos on a planned area of ​​5,000 hectares, with a herd of 24,000 cows. The long-term orientation is to develop a farm complex of 20,000 hectares with a herd of 100,000 cows. This is the result of cooperation between enterprises from Laos, Vietnam and Japan, aiming to form an international standard fresh milk raw material area to supply the Vietnamese market and the Asian region.

The Del Monte - Vinamilk Joint Venture is the newest member of Vinamilk's system of member companies. In August 2021, Vinamilk and its partner Del Monte Philippines, Inc. announced the Del Monte-Vinamilk Joint Venture with a total initial investment capital of 6 million USD, with Vinamilk and its partner contributing 50% each. Currently, Del Monte products are available at more than 100,000 retail outlets in the Philippines.

In Vietnam, Vinamilk and its member companies have also continuously implemented large projects such as Moc Chau Milk Paradise Complex with a total investment capital of up to 3,150 billion VND with a high-tech dairy farm model combined with eco-tourism with a planned area of ​​150 hectares and a high-tech milk processing factory.

The Prime Minister, delegates and leaders of Vinamilk and Moc Chau Milk performed the groundbreaking ceremony of Moc Chau Milk Paradise Complex.

At the end of this year, Vinamilk and Vilico will break ground on the Hung Yen Milk Factory project with an investment scale of 4,600 billion VND. The projects are being actively implemented, greatly increasing the source of raw milk, production capacity - supplying for Vinamilk in Vietnam, Southeast Asia, Asia and meeting the growing export demand.