May 28, 2007

Charoen Pokphand Group to build US$179 million feed factory in Vietnam   

Charoen Pokphand Vietnam Ltd. Co. has signed an agreement to lease land and plans to invest US$179 million to build a factory to produce feed in the Mekong delta region, a Vietnamese government official said Monday.

The company, a unit of Thailand's Charoen Pokphand Group, has leased 13 hectares of land in Tra Noc Industrial Park in Can Tho city, about 180 kilometres west of Ho Chi Minh City, said Dinh Van Tam from the city's investment management department.

"The company is expected to apply soon for its investment license after it receives the land in the coming weeks," Tam said.

He said demand for feed in the Mekong delta region is rising rapidly because local farmers are building more farms to raise fish and prawn.

Tam was unable to provide details about annual production capacity of the factory to be built by CP Vietnam.

Officials from the company were not reachable for comment.