TH Food Chain JSC, best known for its TH True Milk brand, on Wednesday began work on the first phase of its US$2.7-billion milk processing and dairy cow farming project in Moscow, the Vietnamese government said on its website.
The ground-breaking ceremony was attended by Vietnam’s Prime Minister Nguyen Xuan Phuc, who is on a five-day official visit to Russia.
The first phase of the project, estimated to cost $500 million, is scheduled to be finished in mid-2017 and ready for the first batch of dairy products.
TH said the three-phase, ten-year project is the largest investment of Vietnam in Russia.
When it is completed, it will have 350,000 cows farmed on 140,000 hectares of land and can process 5,900 tons of milk a day.
The private company also said it plans to run a distribution network of 300 stores across Russia.
Vietnamese investors have committed $2.93 billion to 20 projects in Russia, mostly in the sectors of oil and gas exploration and services, according to the Vietnam News Agency.
Meanwhile, Russia has been ranked 17th out of 112 countries investing in Vietnam with 114 projects worth $2.08 billion, it said.