Cambodia’s first dairy factory is being planned for Phnom Penh, as one of the owners, a Vietnamese-based dairy company, hopes to tap the strong local demand for its products.

The 2.7-hectare factory in the Phnom Penh Special Economic Zone will produce condensed milk, yogurt and UHT milk, which is milk sterilised at ultra-high temperatures, said Manoj Nutchanart, general manager of BPC Trading, the local distributor of Vietnam’s Vinamilk, on Wednesday. BPC Trading and Vinamilk will sign the joint-venture agreement next month to build the factory.