Sojitz Corporation and Vietnam Livestock Corporation JSC (VILICO), a group company of Vinamilk, have reached an agreement to establish a new joint venture for the purpose of importing, processing, and selling beef products in Vietnam.
|Sojitz and Vinamilk will import beef to cover growing consumption demand in Vietnam |
The joint venture named Japan Vietnam Livestock Co., Ltd. will be capitalised at $2 million. Equity ownership will be split 49 per cent to Sojitz and 51 per cent to VILICO. The joint venture is considering importing beef from such areas as Japan, North America, and Australia.
Vietnam’s annual beef consumption is currently close to 500,000 tonnes and is expected to increase as income levels rise and population growth continues – the country’s population reached 98 million in 2020. Vinamilk is Vietnam’s largest dairy manufacturer whose main business involves dairy farms and the production of dairy products. Vinamilk Group conducts sales both in Vietnam and overseas, and the company has established a strong business foundation through the safe and reliable supply of dairy products.
Sojitz is involved in a wide range of businesses in Vietnam, which span fertiliser production, feed production, flour milling, food wholesale, prepared food production, convenience store operations, and cold chain logistics. In Japan, Sojitz’s fully-owned subsidiary, Sojitz Food Corporation, handles the import and sale of North American and Australian beef, as well as marketing for livestock-related business through its marketing company, Meat One Corporation.
Sojitz will work together with its strategic partner, Vinamilk, to leverage its major business presence and sales network along with Sojitz’s knowhow of livestock product sales. Through the establishment of this joint venture, Sojitz and Vinamilk intend to together provide a safe and reliable supply of high-quality beef products to the Vietnamese market.
Sojitz aims to build a stable supply system for protein (one of the three macronutrients) in Vietnam and Southeast Asia via this beef sales business, which will serve as a starting point for greater collaboration with Vinamilk Group across Sojitz’s many businesses in Vietnam.