Vinamilk and Vilico cooperate with Japanese partners to invest 500 million USD to develop a beef cattle farming project.

The memorandum of understanding for the project, with a total investment of about 500 million USD, was discussed by the parties at the Vietnam - Japan Investment Promotion Conference, witnessed by Prime Minister Pham Minh Chinh during his official visit to Japan.

The total investment value of the project through the stages in the memorandum of understanding is approximately 500 million USD. This is also the highest value agricultural production project signed within the framework of the Prime Minister's working trip to promote economic cooperation between businesses of the two countries.

The Memorandum of Understanding was exchanged by the parties at the Vietnam - Japan Investment Promotion Conference witnessed by Prime Minister Pham Minh Chinh.

Specifically, Vinamilk, Vietnam Livestock Corporation - JSC (Vilico), Vinh Phuc Provincial People's Committee and Sojitz Group of Japan signed a memorandum of understanding on the beef cattle project in Vinh Phuc with the following contents: Joint venture to invest in facilities for raising - processing - distributing beef products in Vietnam, supplying to the national market and for export; The next stages will have additional protein-based products with deep processing technology and the expected scale of cooperation is up to 500 million USD.

In particular, phase 1 of the project is expected to come into operation in 2023 with a capacity of about 30,000 beef cattle/year, with a closed processing facility and modern technology. The scale of cooperation between investors is approximately 3,000 billion VND, of which the total investment of the project in Vinh Phuc province is 1,670 billion VND.

Representatives of Sojitz Group, Vinamilk, Vinh Phuc province and Vilico signed a memorandum of understanding on investment cooperation, project development of beef cattle breeding and trading.

At the signing ceremony held on November 24, Vinh Phuc Provincial Party Secretary Hoang Thi Thuy Lan highly appreciated the project implemented in Vinh Phuc, which will help promote cooperation in agricultural development between Vietnam and Japan in general, Vinh Phuc province and Japanese enterprises in particular, in many aspects from technical cooperation, research, infrastructure development to joint ventures and direct investment in the field of high-tech agriculture. With the existing potential and advantages of Vinh Phuc province, the project's objectives are consistent with the agricultural development strategy in the new period, creating a strong boost to the province's agricultural and livestock sector.

Mr. Ryutaro Hirai - Vice President of Sojitz Group and Ms. Hoang Thi Thuy Lan - Secretary of Vinh Phuc Provincial Party Committee witnessed the signing ceremony of the memorandum of understanding between the parties.

In 2021, Sojitz Group and Vilico, a member company of Vinamilk, reached a cooperation agreement and established a joint venture, Vietnam-Japan Livestock Company Limited (JVL), to raise, process, import and distribute beef products in the Vietnamese market. Vilico owns 51% and Sojitz owns 49% of the capital in this joint venture.

In Vietnam, Vilico is a company with a long tradition and brand in raising, processing and distributing meat products. After becoming a member of Vinamilk, Vilico has more advantages in financial resources, management and raising technology, advanced management systems have been successfully applied by Vinamilk in many dairy farms according to international standards in Vietnam.

On November 23, representatives of Sojitz, Vinamilk, and Vilico enterprises met with the Prime Minister during his working session with major Japanese corporations.

Sharing about the project's orientation, Mr. Trinh Quoc Dung - General Director of Vilico, Executive Director of Raw Material Development of Vinamilk said: "It can be said that this is a project that brings together the elements of favorable time, favorable location, and favorable people. We have found a suitable partner, together promoting each other's strengths. Japan's advanced technology and long-term experience combined with Vinamilk's strengths in resources and markets will create high-quality, superior products at reasonable prices to serve and satisfy the increasing needs of consumers. On the basis of Vinh Phuc province creating favorable conditions in investment policies and encouraging the development of high-tech agriculture, togetherWith systematic and long-term resources and strategies from all parties, this project is expected to lay a solid foundation for new developments in the livestock industry and processing of safe, high-quality meat products in Vietnam in the coming years.

In addition, Sojitz Group is one of the large-scale and fast-growing multi-industry corporations in Japan, which has participated and invested in Vietnam for many years in the fields of fertilizer production, animal feed production, processed food production, convenience store chains and logistics... In Japan, Sojitz is also one of the large-scale importers and distributors of beef from North America and Australia, along with marketing and business activities in the livestock sector.

Mr. Ryutaro Hirai - Vice President of Sojitz Group shared about the group's investment projects in Vietnam during a meeting with Prime Minister Pham Minh Chinh.

Sharing more about business strategy, Sojitz Group representative said:“With the goal of building a stable food supply system in Vietnam and Southeast Asia, we will work with our strategic partner to promote business, combining the strengths of Vilico and Vinamilk with Sojitz's livestock business know-how. Through the establishment of this joint venture, we expect to provide safe and reliable high-quality beef products to the Vietnamese market and vice versa, bringing Vietnamese beef products to potential markets in the future.”

Vietnam and Japan are looking forward to celebrating the 50th anniversary of the establishment of Vietnam-Japan diplomatic relations in 2023, commensurate with the extensive strategic partnership, while continuing to cooperate closely at multilateral forums, especially at the United Nations and ASEAN. In terms of economic cooperation, Japan has always been Vietnam's leading economic partner; the largest ODA donor, investor and major trade partner of Vietnam. Cooperation between the two countries in many fields has developed strongly. Exchanges and cooperation between ministries, branches, localities and businesses of the two countries have also been expanded.

This memorandum of understanding signed under the witness of the Prime Ministers of Vietnam and Japan demonstrates the importance of trade cooperation between businesses of the two countries, raising the strategic level of the two countries' relations not only in politics but also in economics, cooperation for mutual development, especially in strategic sectors such as agriculture and livestock breeding in which both countries have strengths./.