Vinamilk and its member companies implement many large projects.

The beef cattle project in Tam Dao was transferred to a joint venture company with Japan for implementation.

At Vilico's Shareholders' Meeting on June 8, it was decided to transfer the Tam Dao project (investment capital of VND 1,800 billion) to Vietnam - Japan Livestock Company Limited (JVL) - a joint venture between Vilico and its Japanese partner, Sojitz Group. Accordingly, Vilico will transfer the project after it meets the transfer conditions according to the law, so that JVL can continue to manage, operate and develop it.

JVL also plans to invest in building an additional beef cattle farm to complement the Tam Dao project. The total estimated investment is VND1,185 billion and is in the process of surveying and finding a suitable location.

This is a component of the beef cattle project - Vilico's largest investment project to date, after successfully signing a $500 million MOU with Sojitz at the end of November 2021. The project is deployed in Tam Dao district and Binh Xuyen district, Vinh Phuc province with a scale of 30,000 heads, a slaughtering - processing - packaging capacity of 100 heads/day with a total investment of VND 2,985 billion.

Currently, JVL has been raising and selling beef products on a trial basis in Vietnam and has initially built a customer network. In particular, Yuki Snow Beef products imported from Japan are available at major supermarket chains such as Aeon Mall, Aeon Citimart, Ministop... and have received many positive responses from consumers.

At the Shareholders' Meeting, Ms. Mai Kieu Lien - Chairwoman of Vilico's Board of Directors said that there are expected to be 3 major distribution channels for this product: (1) Hotel and restaurant chains (2) large supermarket chains and (3) cooperation with traditional channel businesses targeting the housewife segment of the family.

Yuki snow beef products imported from Japan are currently sold in major supermarkets. Photo: Vilico

According to Ms. Mai Kieu Lien, Vilico's advantage is more than 25 years of experience in the field of livestock farming such as buffalo, cows, and pigs. The joint venture partner, Sojitz Group, possesses the strength and experience in meat business, as well as Japanese technology and quality.

The Vinamilk CEO also pointed out the special point - the most obvious advantage of this project is the self-sufficient source of breeds, long-term experience in raising animals, and advanced, modern technologies, which will create a price advantage. Not to mention that the industrial raising method will give higher productivity while the cost is lower than the current free-range farming. "The competitive advantage of the beef project is similar to Vinamilk's current dairy segment," said Ms. Mai Kieu Lien.

Perspective of the beef cattle project in Tam Dao. Photo: Vilico

Perspective image of beef cattle project in Tam Dao. Photo: Vilico

Hung Yen Milk Factory: transfer to Vinamilk or produce milk products for Vinamilk

Vilico shareholders approved the policy of implementing one of two options: either transferring the Hung Yen Dairy Factory Project invested by Vilico to Vinamilk for Vinamilk to operate or Vilico will produce milk and milk-related products for Vinamilk.

The project has a total investment capital of 2,083.4 billion VND in phase 1 and the above policy will be implemented after the project is completed and eligible for transfer according to the provisions of law.

Ms. Mai Kieu Lien said that this factory is expected to produce 110ml and 180ml fresh milk boxes. This is a preparation for the future to meet market demand in the next 2-3 years, when Vinamilk's factories in the North are currently at over 70% capacity.

Hung Yen Dairy Factory Project was granted the Investment Policy Approval Decision in November 2021.

Perspective of Hung Yen factory.

The Hung Yen Dairy Factory project received the investment approval decision from Hung Yen province at the end of December 2021. The total expected investment is 4,600 billion (nearly 200 million USD) for 2 phases with a total design capacity estimated at about 400 million liters/year, oriented to become a leading dairy super factory in Vietnam and of the scale of the Southeast Asian region.

Moc Chau Dairy Paradise Complex worth 3,150 billion VND started construction

At the end of May, the Moc Chau Milk Paradise Complex Project was officially launched and started construction. The project has an investment capital of up to 3,150 billion VND, an area of ​​176 hectares developed by Vinamilk and Moc Chau Milk, including 2 main items: Moc Chau Ecological Farm, High-tech Dairy Cow and Moc Chau High-tech Milk Processing Factory Project.

Moc Chau Milk Paradise Complex project officially started on May 28.

Perspective of Moc Chau Milk Paradise project complex, with expected investment capital of up to 3,500 billion VND.

Moc Chau high-tech dairy and ecological farm with a high-tech dairy farm model combined with eco-tourism has a planned area of ​​150 hectares, with a total estimated investment of 1,000 billion VND. The farm has a herd of 4,000 dairy cows, expected to supply 20 million liters of fresh milk/year.

As for the Moc Chau High-Tech Milk Processing Factory Project, the total investment for the two phases is 2,000 billion VND, with an estimated design capacity of nearly 500 tons of milk/day in phase 1 and can be increased to 1,000 tons of milk/day in phase 2.

In a short period of time, Vinamilk and its member companies have continuously implemented many large projects with positive growth potential. This shows the changes in the business activities and general development of the enterprise. Along with that is a significant improvement in business performance, coming from effective restructuring.

Specifically, in 2021, Vilico maintained relatively effective business operations with consolidated net revenue recorded at VND 2,928.3 billion, up 4% compared to 2020. Profit after tax was VND 323.4 billion, up 5% mainly due to growth from its subsidiary Moc Chau Milk. This business result exceeded the revenue and profit plans by 4% and 5%, respectively.

For Moc Chau Milk, net revenue reached VND2,926 billion, up 3.6% over the same period and completing 95% of the yearly plan. Profit after tax reached VND319 billion, up 13.7% over the same period and completing 100% of the yearly plan, equivalent to EPS of VND2,891.