The Vietnamese TH Group’s dairy and fresh milk production project will be built in Russia’s Moscow oblast.

TH Group, which is the largest supplier of dairy products in Vietnam and founder of the world famous brand TH True MILK, will build unique dairy cluster area covering 140,000 hectares in the Moscow region, which will operate on the principle of a closed chain - "from the cow to the counter." The future farm will have 350.000 dairy cows, and factory daily capacity will reach 5 900 tonnes of milk. The total investment of the Vietnamese group in the Russian economy in 10 years will be $ 2.7 billion. The cost of the first phase of construction, on the basis of which the TH Group's local production will appear on the Russian market of dairy products by the middle of the year 2017, is estimated at $ 500 million.

The TH Group company has decided to invest in the construction of cattle-breeding and dairy complex in Russia as a result of complex economic, soil, climate, and social studies. The key arguments "for" are the growing demand for dairy products in Russia, a significant support from Russia's and Vietnam's governments, as well as the friendly relations between the two countries.

The TH Group's project is the largest Vietnamese investment project in Russia and the only one in the dairy industry. It received strong support from both the Russian people, and Vietnamese citizens residing in the territory of the Russian Federation, as it has a serious social and economic potential. The most significant advantages that it provides include employment creation, economic growth, efficient use of land resources and reduction of country's dependency of the imported dairy products.

"Russia is a market with high potential for dairy consumption", said Mr. Nguyen Xuan Phuc, the Prime Minister of Vietnam. "Implementation of the project in the Moscow region is an important contribution to the development of agriculture in the area, to the creation of additional jobs for the local population, and for Vietnamese workers in Russia. It represents a new symbol of efficiency and diversity in the cooperation between Vietnam and Russia."

The TH Group achieved notable success in the Vietnam's market. The percentage of its key brand TH True MILK in the white milk category exceeds 50% of the national market. The TH Group's dairy production is manufactured using world leading technologies, meet international standards and are very competitive among similar products in the global market.

"Taking into account the experience of similar project in the province of Nghe An, I would like to emphasize that, in addition to the financial and managerial resources, as well as the enormous efforts of investors, the strong cooperation received from the part of the State, decision makers at all levels - from local authorities to government leaders  - is a very important factor for achieving success, as the establishment of conducive policies and mechanisms depends on them,", said TH Group’s chairwoman Thai Huong.

According to her, Russia is "conducting a revolution in agriculture" "Your country has all the necessary institutions to support business", she explained. "We hope that these favorable conditions will accompany us in implementing this project. We will produce the highest quality dairy products for Russian consumers that will be able to compete with similar products from other milk producers and that, moreover, will be exported to the CIS countries."

It should also be noted that along with dairy products ТН Group plans to supply organic vegetables, fruits and even medicines to the Russian market.

Read more