Demand for packed dairy beverages is expected to further grow in Vietnam. Photo: Dairyreporter.com
Sweden-based food processing and packaging company Tetra Pak has announced it will pour $110 million into a new plant near Ho Chi Minh City
, aiming to tap growing demand of food processors across the Asia-Pacific region.
The new plant, which is scheduled to start operation in early 2019, will be Tetra Pak's fourth one in the region. The company already runs similar factories in Japan, Singapore and India.
Once in place, it will produce cartons for various types of beverages, including dairy products and juices, with an annual capacity of 20 billion packs per year. The cartons made in Vietnam will be shipped mainly to Southeast Asia, Australia and New Zealand.
The dairy industry is considered Tetra Pak’s core business in Vietnam. The milk consumption in Vietnam is forecast to double to 28 liters per capita by 2020 from 15 liters per capita in 2010.
Total consumption of packed liquid dairy and fruit-based beverages in Vietnam is estimated at 3.3 billion liters in 2016 and to grow at a compound annual growth rate (CAGR) of 6.5% in the next three years, according to the Sweden-born firm.