February 15, 2012

Thailand's Royal Foods will build its second plant to produce canned foods in Vietnam with an investment of US$19.5 million, state media reported.

Construction of the plant is expected to start in August in Vinh City of Vietnam's central province of Nghe An and complete by November next year, said the company's Vice Chairman Mongkol Banthrarungroj.

The plant is designed to can up to 100 tonnes of sardines and mackerel per day.

Royal Foods set up its first fish-canning plant in Vietnam in 2007. The plant, located in Tien Giang province which is 75 kilometres south of HCM City, produces more 200 tonnes of canned fish daily and employs 700 workers.

"While the first plant takes care of the southern region of Vietnam, the second facility will source sardines and mackerel from the central region and will cover the market in the north," Mongkol said.

He said that Royal Foods' canned fish products, especially the "Three Lady Cooks" brand, are being distributed in Vietnam by Thai Corp International via more than 50,000 wholesale and retail outlets via the country. Berli Jucker, Thailand's leading trading and manufacturing company, owns a 75% stake in the Thai Corp International.

Mongkol has been doing business in Vietnam nearly 19 years now, starting from a small shop house with just 10 sales staff and a few principal products, including Red Bull energy drink and Three Lady Cooks canned sardines.