With construction having just begun, dairy products from the Moscow project are expected to enter the market in the middle of next year.
On May 18 Vietnam’s TH Milk Food Joint Stock Company and local authorities held a breaking ground ceremony for the first phase of a hi-tech concentrated dairy, cow breeding, and fresh milk production project in the Russian capital of Moscow.
The $2.7 billion project has three phases, of which $500 million has been earmarked for the first phase. Dairy products from the project are expected to be available in mid-2017.
Once completed the facility will house a total of 350,000 heads of cattle, producing 5,900 tonnes of milk per day, or 1.8 million liters annually.
The company also plans to run a distribution network of 300 stores around the country.
“Russia is a large market of great potential for dairy products,” Prime Minister Nguyen Xuan Phuc said at the breaking ground ceremony. “This project will create jobs, contribute to local agricultural development, and represent the diverse and effective partnership between Vietnam and Russia.”
The free trade agreement signed last year between Vietnam and the Eurasian Economic Union will also facilitate and stimulate cooperation in the sector, he added.
According to the Ministry of Planning and Investment, Vietnam has so far invested $2.93 billion into 20 projects in Russia, primarily in oil and gas exploration and services. The TH Milk Food project is Vietnam’s largest in the country.
Meanwhile, Russia is ranked 17th out of 112 countries and territories investing in Vietnam, with 114 projects worth a total of $2.08 billion.