The company says the move will help make it one of the world’s top 50 milk producers, with revenues of 3 billion USD in 2017, from its current position of 53rd.

The first factory is designed to have the capacity to produce 400 million litres annually in the first phase, equivalent to 90 percent of Vinamilk’s current output. It will then increase production to 800 million litres after phase two.

The second factory will produce Dielac 2 formula milk for children with an annual output of 54,000 tonnes.

Vinamilk posted revenues of nearly 21 trillion VND in the first nine months of 2012, up 25 percent year on year and fulfilling 76 percent of its yearly target. This figure is expected to reach 26.5 trillion VND by the end of this year.