September 15, 2011

Thailand's Charoen Pokphand to invest US$170 million in Vietnam

Thailand's Charoen Pokphand Group intends to invest US$170 million in Vietnam, aiming to reach out further to the local market by constructing five additional animal feed production facilities between 2012 and 2014.

The company will invest nearly US$100 million in the 2012-13 period and US$70 million a year later to raise its animal feed factories in Vietnam to 10 by 2014 from the current five, according to the state media Tuesday (Sep 13).

General Director of Charoen Pokphand Vietnam Livestock Corporation said the plan aims to create favourable conditions for its company to operate more effectively in all regions of Vietnam.

The group, which has operated in Vietnam since 1992, has opened a factory in Vietnam's southern province of Binh Duong and will put into operation another near Hanoi next year.

Currently, 233 animal feed producers in Vietnam, including 57 foreign-invested firms, made a total output of 10.6 million tonnes in 2010, meeting 53.8% of total demand for the country's livestock sector.

Every year, the country has to import animal feed and material for its production at value of about US$3 billion to meet the country's demand.