Ho Chi Minh-based Vinmilk, Vietnam’s largest dairy producer with a 42% market share is investing US$110 million into an expansion of its Vietnam Milk Factory. With an initial capacity of 400 million liters per year, 18 lines will be added to the existing 17 for a total of 35 lines that will have a capacity to produce 800 million liters of milk per year. The company aims to become one of the world’s top 50 largest dairy producers and targets annual sales of US$3 billion by 2017. The company was founded in 1976 with two factories. Vietnamese milk consumption is relatively low compared to other countries, however Vinmilk views this as opportunity for growth. In 2013 it inaugurated two factories – the Vietnam Milk Powder Factory and the Vietnam Milk Factory bringing the company’s total number of facilities to 13. The state-of-the-art facility will enable Vinamilk to compete with companies such as FreislandCampina and expand beyond Vietnam.
To receive relevant news stories with summaries provided by GAI Research & Insight, subscribe to Global AgDevelopments, our free weekly enhanced eNews service