Vietnamese dairy firm TH Group starts $230mn clean food project in Ho Chi Minh City

The project covers about 10 hectares at the industrial park, located in the former Binh Duong Province, which was merged into Ho Chi Minh City under a national administrative restructuring that took effect on July 1, 2025.

Upon full completion, the new facility, the TH Binh Duong food processing factory, will have a designed capacity of nearly one million metric tons of products per year.

The factory is expected to become one of the largest clean food processing facilities in Vietnam and will apply advanced technologies and integrated management systems in line with the rapid development of artificial intelligence and the digital economy.

Speaking at the groundbreaking ceremony, Nguyen Van Duoc, chairman of the Ho Chi Minh City administration, said the project is significant not only for the city but also for the southern key economic region of Vietnam.

Duoc said the world is entering a period of growing uncertainty marked by geopolitical competition, regional conflicts, energy price volatility, and the risk of supply chain disruptions.

These challenges are placing increasing pressure on economies worldwide, especially in the food sector.

“In that context, ensuring a safe, sustainable, and high-quality food supply is not only an economic requirement but also a matter of security and social responsibility,” he said.

According to the city leader, TH Group’s decision to invest more than VND6 trillion ($229.5 million) in the factory will help add value to domestic agricultural products while contributing to a stable and reliable food supply for Ho Chi Minh City and neighboring provinces in southern Vietnam.

City authorities also welcomed the project’s development approach aligned with a green and circular economic model.

Duoc affirmed that the city’s administration will continue to support the project and facilitate its implementation.

At the ceremony, Thai Huong, founder and chairwoman of the Strategic Council of TH Group and chairwoman of the Vietnam Association for Women Entrepreneurs, said the TH Binh Duong factory is expected to contribute to the double-digit growth targets set by Ho Chi Minh City and Vietnam.

The company said the project will be implemented in two phases, with the first valued at more than VND4 trillion ($153 million) and expected to begin operations in the first quarter of 2027.

This phase will focus on processing dairy products made from fresh milk supplied by TH’s farm system.

The factory is expected to feature around 20 fully automated production lines using aseptic filling technology with a capacity of up to 66,000 units per hour.

The technology allows the products to be processed without preservatives while preserving the natural flavor and nutrients of the fresh ingredients.