January 15, 2014

Vinamilk to invest US$23 million in milk processing plant in Cambodia

Vietnam Dairy Products JSC or Vinamilk, will invest US$23 million in milk processing plant occupying 30,000 square metres in Phnom Penh in Cambodia.

Vinamilk, Vietnam's largest dairy company by market share, said the new plant will produce 19 million litres of liquid milk, 64 million cups of yogurt and 80 million cans of condensed milk annually.

Vinamilk  will hold a 51% stake in the plant, while Cambodia's Angkor Dairy Products Company Limited will hold the remaining 49%. Production is scheduled to start in 2015.

The license was given to the company during a visit to Cambodia by Vietnamese Prime Minister Nguyen Tan Dung to boost bilateral trade and investment ties.

Vietnamese companies have so far been licensed to invest US$3 billion in 127 projects in Cambodia, making Vietnam the fifth-largest foreign investor in Cambodia, the Vietnamese government said. Dung said that by 2015 the two countries hope to raise bilateral trade to US$5 billion from US$3.2 billion in 2012, according to the government.

Vietnam's key exports to Cambodia are transport fuels, steel, garments, farming machines, chemicals and fertilisers, while it mainly imports rubber latex, timber and tobacco from Cambodia.