Dutch dairy group Friesland Foods will build a second dairy factory in Viet Nam to meet the strong demand for its products in the rapidly growing Vietnamese dairy market.
The US$21-million factory will be situated in Phu Ly in the northern province of Ha Nam and is scheduled to come into operation in January 2008.
"The construction of a second production facility has become necessary because of the rapid growth in sales of Friesland Foods' dairy products in Viet Nam," the company said last week.
After nearly 10 years of operation in Viet Nam, the company’s Dutch Lady has become one of the best known brands in Viet Nam, where sales of dairy products show annual growth of some 25 percent.
The product range in Viet Nam includes yogurt drink, condensed milk, baby and infant foods, long-life milk and yogurt. These products are sold under the Dutch Lady, Yomost, Calcimex, Completa, Friso and Fristi brands. The new factory will make ready-to-drink products.
Vietnamese people have known Friesland Foods’ products since 1923. However, Friesland Foods became officially present in Viet Nam in 1996 with the foundation of a US$50-million joint venture, Friesland Foods Dutch Lady Vietnam.
Friesland Foods Dutch Lady Vietnam's factory and head office are located in Binh Duong Province twenty kilometers from Ho Chi Minh City.
The company supplies approximately 80,000 sales outlets from three distribution centers and has five sales offices in Viet Nam.
It will hire an additional 225 people as a result of the expansion, adding to its current staff of 1,200.