Journey of Vietnam's Largest Milk Investment Project in Russia

10:15:25 AM | 15/1/2020

During her official visit to the Russian Federation, National Assembly Chairwoman Nguyen Thi Kim Ngan and National Assembly’s senior officials visited TH Group's dairy farm in Moscow and praised the group’s initial business achievements. The largest investment project of a Vietnamese company in Russia has seen many important milestones to come to fruition.

In August 2014, the Russian government imposed an embargo on agricultural products imported from Europe, including dairy products, in a retaliatory response to the EU’s economic embargo on Russia because of Ukraine matters. At that time, Russia was short of milk. Against this backdrop, Russian President Vladimir Putin was determined to boost domestic milk production.

After nearly five years of asserting the prestige of TH true MILK products in Vietnam, Madam Thai Huong, Founder of TH Group, desired to become the first Vietnamese investor of high-tech agricultural project in the Russian Federation. One of TH Group’s first motivations for her investment decision was the desire to show gratitude for favors and sentiment that the Russian people gave the Vietnamese people during the resistance wars.

In the photo, Madam Thai Huong and former Vietnamese Ambassador to Russia took a helicopter to explore a dairy farm in Moscow.

After analyzing business opportunities amidst dairy shortage in Russia, the Russian Government issued attractive policies to develop the agricultural sector, entice investors into a long-forgotten industry. TH Group planned to invest US$2.7 billion in a dairy complex project in Russia over 10 years.

On October 22, 2015, at the presence of President Truong Tan Sang, Madam Thai Huong signed a cooperation agreement with Mr. Andrey Vorobiev Iu, Governor of Moscow Oblast, to launch the dairy cow project in Moscow.

On May 16, 2016, at the presence of Vietnamese and Russian Prime Ministers, Madam Thai Huong and Mr. Anatoly Dmitriyevich Artamonov, the Governor of Kaluga Oblast, signed a memorandum on the project deployment of TH Group in Kaluga Oblast.

On May 18, 2016, Prime Minister Nguyen Xuan Phuc together with TH Group started construction on a farm in Moscow Oblast. At this event, Madam Thai Huong announced the dairy farming and processing complex project in the Russian Federation. Divided in three stages, the project, together with some food projects, costs a total of US$2.7 billion of investment capital in 10 years.

On October 18, 2016, the farm in Kaluga Oblast began construction.

On January 11, 2017, Madam Thai Huong met Prime Minister Mardanov Rustem of the Republic of Bashkortostan of Russia, to discuss investment cooperation. In April 2017, TH Group agreed to launch a dairy farming project. On October 4, 2017, the two sides signed an MOU within the framework of the Golden Autumn Fair in Moscow

On March 15, 2017, Madam Thai Huong met with Russian Deputy Prime Minister Yuri Trutnev, Presidential Envoy in the Far East, and seven governors to discuss investment cooperation in the Far East. In September, at the Eastern Economic Forum, TH Group signed an investment project to raise cows and produce milk in the Far East. At the event, she met with Russian President Vladimir Putin.

In December 2017, the first 1,100 head high-yield dairy herd was imported from the United States to the TH farm in Moscow Oblast. On January 3, 2018, the first calf was born in Russia, marking the beginning of the TH milk in Russia.

TH Group’s horticulturists and Director of TH Farm in Russia on a thousand-hectare field of TH Farm in Moscow Oblast

This used to be an agricultural area that was abandoned more than 10 years. Trees became forests. TH Group has reclaimed and transformed this place into corn fields and pastures for dairy cows.

On January 31, 2018, TH Group inaugurated the first dairy farm and processing facility in Moscow Oblast.

On September 7, 2018, at the presence of Party General Secretary and President Nguyen Phu Trong, TH Group started construction on an organic fresh milk processing plant with a daily capacity of 1,500 tons in Borovsk Special Economic Zone, Kaluga. This facility is equipped with the most modern technology in Russia. The General Secretary affirmed, “The first dairy processing plant of TH Group in the Russian Federation is the beginning of a new investment trend between Vietnam and the Russian Federation. For years, Russian investment into Vietnam has been more common, but now Vietnamese businesses are investing in Russia.”

On December 10, 2019, the Chairwoman and senior official delegation of the Vietnamese National Assembly visited TH Farm in Volokolamsk district, Moscow Oblast. “We traveled from Moscow to here and saw a vast land. These little women turned this place high-tech dairy farms. Now, TH cows here are very productive. Each cow produces 37-40 liters of milk day,” she said.

“This project shows the will of Vietnamese businessmen, especially a female entrepreneur who is resolved to actively lead integration and offshore investment. The National Assembly and the Government of Vietnam will continue to follow and support the project to make it an exemplary and successful model of economic cooperation, a leading light of Vietnamese investment by Vietnamese companies in the Russian Federation,” affirmed the National Assembly Chairwoman.
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TH Group’s milk project in Russia is divided in three phases. Phase 1 involved construction of farms and factories in Moscow and Kaluga oblasts. Phase 2 will be projects in the Republic of Bashkortostan and the Far East. The final phase will be business expansion, depending on actual production, business performance and market development.
When Phase 3 is completed, the project is expected to have 350,000 cows and process 5,900 tons of milk per day, or nearly 1.8 million tons a year. The total farm area is 140,000 hectares.

TH true MILK products are expected to be distributed in Russia through traditional channels, supermarkets and TH True Mart chain (300 stores).