Vinamilk & Sojitz Japan Kicks Off the Complex of Breeding and Beef Processing Vinabeef Tam Dao

This is the first project in the investment and collaboration plan between the leading corporations of Vietnam and Japan in the sector of high-tech agriculture, cattle breeding, and beef processing.
Vinamilk & Sojitz Japan Kicks Off the Complex of Breeding and Beef Processing Vinabeef Tam Dao

On March 8, 2023, in Tam Dao, Vinh Phuc, the complex of breeding and beef processing Vinabeef Tam Dao, a project with a total investment of 3,000 billion VND invested in Vietnam by Vilico (a member of Vinamilk) and Japan's Sojitz Corporation, was officially kicked off in Tam Dao District, Vinh Phuc Province. The ceremony was attended by H.E. Mr. Tran Luu Quang, Deputy Prime Minister of the Socialist Republic of Vietnam, member of the Party Central Committee, and representatives of Vinamilk, Vilico, Sojitz & Vietnam Japan Livestock Ltd. Co. (Vinabeef).

This is the first project in the investment and collaboration plan between the leading corporations of Vietnam and Japan in the sector of high-tech agriculture, cattle breeding, and beef processing, with a total value of up to 500 million USD in cooperational agreements signed by the end of 2021. The groundbreaking ceremony of the project is the highlight in the series of activities to celebrate the 50th anniversary of diplomatic relations between Vietnam and Japan with the message "Together, Vietnam and Japan Stride Forward into The Future and Reach Out to The World" featuring the participation of Senior Leaders of the Socialist Republic of Vietnam and Representatives of Sojitz Corporation.

Overall perspective of Vinabeef Tam Dao breeding and processing project

Located in Tam Dao, Vinh Phuc, the project area for the Vinabeef Tam Dao complex is 75.6 hectares in scale. The complex's two primary subdivisions are the beef cattle farm, which can house up to 10,000 beef cattle, and the chilled beef processing factory, which can handle up to 30,000 beef cattle annually (10,000 tons of products). In phase 1, the scale of investment capital collaboration between Vinamilk - through its subsidiary Vilico - and Sojitz Group is roughly VND 3,000 billion, and the total construction investment for the cluster of farms and factories in Tam Dao is VND 1,670 billion. Chilled beef products which are processed utilizing Japanese technology and sold under the Vinabeef brand is the anticipated end result of the project once it goes live in 2024.

Vinabeef Tam Dao is the first project to be implemented under the memorandum of understanding with a total value of USD 500 million signed between Vilico, a member of Vinamilk, Sojitz Cooperation and Vinh Phuc Province at the end of 2021 aimed at developing the Japanese technology beef breeding and processing industry in Vietnam. This memorandum of understanding is also the one with the biggest amount of cooperation value that was signed by businesses from both nations in Japan in the presence of Prime Minister Pham Minh Chinh at the 2021 Vietnam - Japan Investment Promotion Conference.

In 2023, on the occasion of the 50th anniversary of Vietnam and Japan's diplomacy, the project officially kicked off. Keeping this in mind, Vinabeef Tam Dao not only signifies the cooperation between the leading corporations of the two countries, but also represents the efforts and determination of businesses and Vinh Phuc Province in promoting the cooperation relationship for the mutual development of Vietnam and Japan, particularly in the fields of high-tech agriculture and food production-processing.

During the event, Mr. Masayoshi Fujimoto, President of Sojitz Corporation (Japan), stated that this is a potential and major project in Vietnam for the corporation for at least five to ten years. "According to an analysis of the beef industry in Vietnam, there is still a significant amount of untapped potential, as the demand for and consumption of high-quality meat products remains at a very high level. As the project is put into operation, we anticipate that it would usher in a new period of prosperity in the market. In addition, Vinamilk and Vilico are large, well-known partners that have capabilities in the areas of resources, experience in the livestock business, operational expertise, and understanding of the market. When it comes to bringing Vinabeef Tam Dao complex available, as well as upcoming projects in the future, we will make excellent partners because of how well we complement and assist one another."

The uniqueness of the Vinabeef Tam Dao lies in the fact that it is intended to be developed and operated using a closed 4-in-1 process, which includes livestock, production, processing, and distribution. By doing so, it will supply Vietnamese consumers with chilled beef that is fresh, tasty, nutrient-dense, and safe for their health.

Beef cattle will be produced on ecological farms that adhere to Global G.A.P. standards and receive specialized care and cutting-edge technology as part of the 4-in-1 procedure which starts with the natural breeding model. Here, experienced staff from Vinamilk - Vilico and Japan work together to raise calves specifically bred for beef production. Next, a quick chiller on-site helps block the growth of microorganisms, ensuring product safety standards according to humanitarian principles and Japanese standard laws.

Vinabeef's beef products are processed in an ultra-clean environment on a closed, highly-automated manufacturing line that can handle 10,000 tons of beef per year (equal to 30,000 beef cattle), utilizing cutting-edge technology to guarantee the greatest possible levels of freshness and nutrition. As a result, the distribution process will remain tightly managed, as is necessary to fulfill the criteria of the chilled supply chain, and full product traceability will be maintained to guarantee the highest standards of quality and safety from farm to fork.

While talking more about Vinabeef's development orientation, Ms. Mai Kieu Lien, a member of the Board of Directors, General Director of Vietnam Dairy Products Joint Stock Company (Vinamilk), and Chairman of the Board of Vietnam Livestock Corporation Joint Stock Company (Vilico), affirmed, "We expect this to be a prototypical case of collaboration between Vietnamese and Japanese businesses in the area of high-tech agriculture, focused on long-term sustainable development, thanks to the strengths of project partners Vinamilk, Vilico, and Sojitz and the backing of the Government and leaders of Vinh Phuc Province. In this way, we can work toward our goal of making Vinabeef a household name in Vietnam, not just as a trusted name in the beef industry, but as a provider of high-quality foods for both domestic consumption and international export."

Business information

Vinamilk was established in 1976, is the 36th largest dairy company in the world in terms of revenue and the 6th largest dairy brand globally according to Brand Finance. Vinamilk now administers 15 farms, 14 of which are located in Vietnam and 1 located in Laos. Moreover, Vinamilk operates 17 sophisticated factories both in Vietnam and abroad, all of which were constructed and are run in accordance with international standards. The Company's products have been exported to 59 countries and regions.

Vietnam Livestock Corporation Joint Stock Company (Vilico) was established in 1996, directly under the Ministry of Agriculture and Rural Development. Providing food for society and the community; protecting and developing capital sources; creating jobs; boosting income for employees; giving benefits to shareholders and investors are all ways that Vilico contributes to the expansion of the livestock industry as a whole.

Sojitz Corporation from Japan was established in 2004 and is a corporation named in the list of 2,000 largest companies in the world voted by Forbes. With nearly 400 subsidiaries and affiliates, Sojitz operates in various business fields, including fertilizer production, animal feed, flour milling, prepared food production, convenience store operations and logistics.

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