The processing plant has been funded by TH Group, and is designed to process 500,000 tonnes of milk per year by 2017. The plant’s first phase will see 200,000 tonnes of fresh milk being processed every year.

The plant is part of TH Group’s US$1.2 billion project to develop large-scale dairy farms and the milk processing industry in general.

Besides the new plant, the project’s first phase also saw farms raise up to 45,000 cows on 8,100ha of pasture.

The group aims to increase its herd to 137,000 head by 2017, providing half of the country’s supplies of fresh milk.

Speaking at the event, Dung praised the company’s investment to produce and process milk as well as for using top-quality cows to ensure adequate supplies.

He said this is in the right direction to follow, and in accordance with Government policies to encourage the food processing industry and use locally sourced materials.

The factory will create numerous jobs for local people, reduce Viet Nam’s dependence on imported milk and promote Viet Nam’s dairy industry to the rest of the world, he added.

Earlier the same day, the two Prime Ministers visited a rubber plantation belonging to the Nghe An Rubber Investment and Development JSC in Thanh Duc commune, Thanh Chuong district.