Logo of Phnom Penh Post newspaper Phnom Penh Post - Vinamilk deal to go ahead

Vinamilk deal to go ahead

A Vinamilk carton on shelf at a corner store in Phnom Penh
A Vinamilk carton on shelf at a corner store in Phnom Penh last year. Hong Menea

Vinamilk deal to go ahead

Vietnam Dairy Product Joint-Stock Co, better-known to milk lovers as Vinamilk, was granted a licence on Monday to open a $23 million processing facility in Phnom Penh’s Special Economic Zone.

A statement to the Ho Chi Minh Stock Exchange released by the dairy giant on Monday says the Vietnamese Ministry for Planning and Investment issued Vinamilk with a mandatory overseas investment certificate.

Vietnamese Prime Minister Nguyen Tan Dung delivered the licence to Vinamilk on Monday amid the 4th Cambodia-Vietnam conference on investment cooperation in Phnom Penh.

The deal has Vinamilk holding a 51 per cent share of the facility, and Cambodia’s Angkor Dairy Products Company Limited owning the remaining 49 per cent. The plant will produce 19 million litres of liquid milk, 64 million jars of yogurt and 80 million cans of condensed milk annually, according to the statement.

Manoj Nutchanart, general manager of BPC Trading, the local distributor of Vinamilk, said the license was one of the final details needed before construction on the facility starts.

“We expect the operation to be up and running in early 2015,” he said.

Tran Tu, trade attaché at the Vietnamese embassy in Phnom Penh, commended the deal, and said while much of the process is automated, the facility may provide up to 100 jobs.

“I hope in the future there will be more Vietnamese investment in Cambodia because there are many things to do, especially as we get closer to the Asean Economic Community 2015 deadline,” he said.

The embassy official also listed Vietnamese investment increases in Metphone, valued at $70 million, a $100 million increase in Cambodia Angkor Air and a $600 million investment increase in Vietnam Rubber Group as other notable additions to the cross-border trade.

Vinamilk’s 2013 third-quarter financial statement shows a $238 million after-tax profit, up from $196.8 million during the same period in 2012.

At the same conference where Vinamilk’s license was handed over, Prime Minister Hun Sen said Vietnamese investment in Cambodia had risen 250 per cent between 2012 and 2013.

Nguyen The Phuong, deputy minister of Planning and Investment of Vietnam, said at the conference that from 2009 to 2013, the Cambodian government had approved a total of 103 Vietnamese investment projects, for a total value of $2.9 billion.

Major Vietnamese investments are focused in agriculture and forestry (rubber plantations and rice), energy, banking, finance, insurance and telecommunications, according to the Vietnamese deputy prime minister.

MOST VIEWED

  • With herd immunity likely in 2022, is Cambodia ready to reopen for tourism?

    The government aims to inoculate 80 per cent of the target population by June next year, giving it a head start among regional peers to reboot the sector but first, it has to do a few things to up its game A sign on a glass

  • Quarantine still a must for all arrivals, in next Covid chapter

    Since early May, an average of five to 10 Cambodian people have died from Covid-19 a day with many others testing positive amid the ongoing community outbreak. At the same time, however, hundreds of patients also recovered a day. The first Covid-19 case in Cambodia was

  • US wants 'full access' to Ream Naval Base

    On June 11, the US embassy's Defense Attaché Colonel Marcus M Ferrara visited Ream Nava Base in coordination with Cambodian officials following the recent approval of Prime minister Hun Sen to allay the concerns on Chinese military presence at the base as raised by US Deputy

  • Jab drive heading to 5 provinces

    The government is set to vaccinate more than 1.2 million people in five provinces after finishing with Phnom Penh and neighbouring Kandal in an ongoing campaign administered by the ministries of Health and National Defence. The five provinces are Preah Sihanouk, Kampong Speu, Takeo, Kampong Cham

  • New immigration bill targets illegal foreigners in Kingdom

    General Department of Immigration (GDI) officials are discussing revisions to the new draft law on immigration to prevent foreigners from entering Cambodia illegally and to supervise those living in the Kingdom more effectively. The revisions draw wide support among civil society organisations. GDI director-general Kirth

  • First commercial gold mine online

    Australian miner Renaissance Minerals (Cambodia) Ltd on June 21 began the commercial operation of its $120 million Okvau Gold Project in the northeastern province of Mondulkiri, becoming the Kingdom’s first gold producer. Located in the Okvau area in southwestern Mondulkiri province’s Keo Seima district, the