Charoen Pokphand Foods Plc (CPF) is gearing up to produce more processed foods in Vietnam in preparation to serve domestic demand and greater consumption expected from the coming single market in Asean.
Its CP Vietnam Corporation (CPV) unit is investing US$100 million in several core businesses to support the production of processed food under the CP brand.
The investment includes setting up a new feed meal plant in Hai Duong province near Hanoi. The plant will start operating next month with annual capacity of 720,000 tonnes.
Sooksunt Jiumjaiswanglerg, CPV's general director, said the factory will use the most modern technology to ensure CPV's world-class standard of production and traceability.
A new processing plant has also been set up in Hanoi including a slaughterhouse and facilities to make processed food items including sausages.
CPV is also expanding its business in central Vietnam by setting up a new feed mill in Binh Dinh province.
The facility, with annual capacity of 216,000 tonnes, will be completed next year.
A shrimp-processing plant is being constructed in Hue in central Vietnam that should be ready by the middle this year. It will be the company's processing and export base for shrimp products
"These new manufacturing plants required a combined investment of $100 million," Mr Sooksunt said.
CPV also plans to set up two feed meal plants in southern Vietnam.
The company's core businesses in Vietnam comprise feed mills, farms, processed food, ready-to-eat food and CP Shops, its distribution store.
It has six feed mills for livestock and aquaculture produce and a processing plant in southern Vietnam. Its total investment in Vietnam has reached $1 billion.
Mr Sooksunt said CPV will focus more on manufacturing processed food as part of its policy to become a leader in terms of food safety and security.
"We have to aim for products to be exported under the name of Vietnam rather than only under the CP brand," he said.