TH Group has started building dairy farms in Russia. (Photo: lipmag.com)
TH Group, among the largest dairy producers in Vietnam, on Wednesday started building farms in Volokolamsk village, Moscow, as part of a 10-year project with an investment of $2.7 billion.
This is the first dairy project to be carried out by a Vietnamese firm in Russia and Vietnam’s largest investment in the Europe country so far, the Vietnamese government said on its website.
The project is divided into three phases. In the first phase with a cost of $500 million, 800 tons a day of milk and other products will be produced and be launched for sale in Russia next year.
Once the three phases are completed, TH Group will have a total of 350,000 cows and produce 5,900 tons of milk a day, or 1.8 million tons per year. The firm plans to set up a distribution network of 300 outlets in Russia.
“It's not the easiest time for our country. We live in conditions of food sanctions and when the Vietnamese government supports us, it means a lot to us,” Alexander Tkachev, Russian agriculture minister, was quoted by Reuters as saying at the ground-breaking ceremony of TH Group's farms.
Vietnam now has 20 investment projects worth a combined $2.93 billion, mostly seen in the oil and gas sector. Meanwhile, Russia ranks 17th among 112 countries and territories investing in Vietnam, with a total investment of $2.08 billion, according to data of the Vietnamese Ministry of Planning and Investment.